Bohemia, NY (PRWEB) February 04, 2013
On February 4, John Monderine, CEO of Rapid Recovery Solution, responds to an article published by Lexology with regard the Massachusetts Attorney General releasing a guide of the new debt collection rules.
According to the article published by Lexology, the Massachusetts Attorney General outlined a guide for collection agencies including the new rules that took effect in March of last year. The guide was released on Jan. 24 and highlights specific rights and obligations agencies have when attempting to collect from individuals in Massachusetts.
One of the focal points of the guide was to inform debt collectors on the amended rules, the article said. These rules automatically halt “debt collection activities if the borrower provides notice that the debt, or any portion of it, is in dispute.” Under the new rules, the halt only lifts if the collection agency reveals documents that can validate the debt amount and identity of the borrower.
The article said, the Attorney General’s guide “clarifies that the automatic stay is not intended to limit the ability of home mortgage lenders to contact delinquent borrowers about loss mitigation programs that may benefit the borrower. Such communications with a borrower are for loan servicing purposes in an effort to assist the consumer, not debt collection purposes.”
The article said the collection agencies are expected to act in good faith when producing paperwork proving what the borrower owes. They are also supposed to give a copy of this documentation to the borrower.
John Monderine, CEO of http://rapidrecoverysolution.com/Collection_Services.html","collection services company Rapid Recovery Solution, said there are many different types of debt and different rules for each type. “The Massachusetts Attorney General did a good job outlining restrictions and making the amended rules clearer for agencies,” he said. “I applaud him for doing collection agencies a great favor, that way there will be less controversy and room for error. It’s important to make sure everyone knows the legal restraints on their business operations.”
The article also said one of the new rules prevents debt collectors from contacting borrowers by phone more than twice in a week. The Attorney General’s guide “explains that one of the goals of this provision is to limit the fees that a creditor can impose on a borrower through calls, voicemails and text messages. According to the guidance, unsuccessful attempts to reach a borrower by telephone do not count toward the limitation on initiation of communication under this rule if the creditor is, in fact, unable to reach the borrower or to leave a message for the borrower.”
The article concluded that while unsuccessful phone attempts do not count toward the new limitation rule, the Attorney General could also take action against debtors that harass, oppress or abuse a borrower by making a high volume of calls.
“There is a fine line between calling a borrower to collect a debt and harassment,” Monderine said. “As a collector, you want to get your money, but you also don’t want to threaten the borrower. If the borrower feels attacked, you aren’t going to get the money you need and you could face legal consequences. It’s good that the Attorney General explained this in his guidance and I encourage other state officials to do so as well.”
Founded in 2006, Rapid Recovery Solution, Inc. is headquartered at the highest point of beautiful Long Island. Rapid Recovery Collection Agency is committed to recovering your funds. We believe that every debtor has the ability to pay if motivated correctly. We DO NOT alienate the debtors; we attempt to align with them and offer a number of ways to resolve not only your debt but also all their debts.