Judge Richard G. Stearns of the United Stated District Court of Massachusetts has granted a temporary restraining order against Massachusetts Attorney General Maura Healey’s emergency rule prohibiting debt collectors making outbound collection calls and assertion of legal actions against consumers. This marks a major victory by the ACA International but should be taken with an understanding that this is only a temporary order.
On May 1st, the ACA and the AG’s office presented oral arguments regarding the request and had taken it under consideration with an expected decision yesterday. The decision is only a hold, intended to provide relief to the Plaintiff, the ACA while the court makes a final decision.
In the decisions the Judge stated;
Balance of the Equities; Public Interest
“Given the plethora of protection provided to debtors by the laws and regulations the court has previously cited, the interest a debtor may have in the Regulation may not weigh as heavily as the threat of extinction faced by smaller collection agencies who have been effectively put out of business.
Of perhaps greater concern is the impact the Regulation may have on hospitals and utilities who depend on collection agencies to remain solvent. Finally, the court recognizes the argument advanced by ACA that a capitalist society has a vested interest in the efficient functioning of the credit market which depends in no small degree on the ability to collect debts”
The judge has clarified that what is at issue here is the First Amendment rights for commercial speech. A form of speech with a lower test of scrutiny than other forms of protected speech.
The ACA has regardless, met its burden of proof for the temporary restraining order until the court makes a final decision.
Federal Court Grants Temporary Restraining Order Against Mass AG Collections Ban! – Credit Union Collections – Lawsuit – Servicemembers Civil Relief Act Centralized Verification Service
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