Chapter 93A and Debt Collection in Massachusetts: What Creditors and Debtors Need to Know

Massachusetts Business Attorney · Business Law

Massachusetts has some of the strictest debt collection rules in the country. A business that collects its own customers’ consumer accounts is subject to them, not just collection agencies. Violations can be treated as unfair or deceptive practices under Chapter 93A, the state’s consumer protection law.

This guide explains who the rules apply to, what they prohibit, how they compare to federal law, and what a consumer can do if a creditor crosses the line.

Consumer debts versus business debts

The first question is what kind of debt is being collected. The Attorney General’s debt collection regulations, 940 CMR 7.00, apply only to the collection of “debts” as the regulations define them (940 CMR 7.02). Under 940 CMR 7.03:

• A debt is money more than 30 days past due (unless a different period was agreed), arising from a purchase, lease or loan for personal, family or household purposes.
• A debtor is a natural person present or residing in Massachusetts who is allegedly personally liable for the debt.
• A creditor includes the business that is owed the money and its agents, employees and attorneys, as well as a buyer of delinquent debt that hires a third party or attorney to collect.

A debt one business owes another for business purposes is not covered by these consumer rules. That does not mean anything goes. Business-to-business conduct can still be challenged as unfair or deceptive under Chapter 93A, § 11, and other laws may apply. But the specific call limits and notice requirements below are consumer protections. Our series on how a Massachusetts business collects on a debt covers the commercial side.

Who regulates whom

Several layers of law apply to consumer debt collection in Massachusetts:

• Creditors collecting their own debts are governed by the Attorney General’s regulations at 940 CMR 7.00 and by G.L. c. 93, § 49.
• Third-party collection agencies must be licensed by the Commissioner of Banks (G.L. c. 93, § 24A), with exemptions for banks and certain other financial institutions. The Division of Banks regulates their conduct under 209 CMR 18.00, which was revised effective September 2025 to track federal Regulation F more closely.
• The federal Fair Debt Collection Practices Act (FDCPA) applies to “debt collectors,” meaning businesses that collect debts owed to others. It generally does not cover a creditor collecting its own debts in its own name (15 U.S.C. § 1692a(6)).

The Massachusetts telephone limit

The rule that surprises creditors most is the call limit. Under 940 CMR 7.04(1)(f), a creditor may not initiate more than:

• Two communications in each seven-day period to the debtor’s residence, cell phone, or other number the debtor gave as a personal phone number; and
• Two communications in each 30-day period to other numbers, such as a workplace,

for each debt. Live calls, text messages and recorded audio messages all count. A call that responds to the debtor’s own request is not treated as initiated by the creditor.

This is far stricter than federal law. Regulation F, the federal rule under the FDCPA, presumes a third-party debt collector complies if it calls no more than seven times within seven consecutive days about a particular debt, and does not call within seven days after a telephone conversation about that debt (12 C.F.R. § 1006.14(b)(2)). A creditor that calls a Massachusetts consumer every day, or even three times in a week, is violating the state rule even if it would satisfy Regulation F. The Division of Banks’ revised rules for licensed collection agencies also keep a two-calls-in-seven-days limit.

Other prohibited practices

Section 7.04 lists other ways of contacting a debtor that are unfair or deceptive. A creditor may not:

• Call at odd hours. No calls outside the debtor’s normal waking hours or, if those are unknown, outside 8:00 a.m. to 9:00 p.m. Eastern time.
• Keep calling at work after being told to stop. Once the debtor asks, calls to the workplace must stop. An oral request lasts ten days unless the debtor confirms it in writing, postmarked or delivered within seven days.
• Skip the workplace notice. After the first contact at the debtor’s workplace, the creditor must send a written “Notice of Important Rights” within 30 days, and again every six months while collection continues.
• Visit the debtor’s workplace unless the debtor asks, or visit the home outside waking hours or more than once in 30 days per debt (repossession visits excepted).
• Hide its identity. Callers must disclose the creditor’s business name and the caller’s name, or a first name and a consistent personal identifier.
• Make threats. No threats of arrest, and no threats of garnishment, attachment or other court-ordered action without explaining that a court order must be in place first, or of any action the creditor cannot legally take or does not intend to take.
• Use profane or obscene language, or cause the debtor collect-call, text or data charges.
• Go around the debtor’s lawyer. After an attorney notifies the creditor to direct contacts to the attorney, the creditor may contact the debtor only to perfect or preserve its rights (7.04(2)).

Creditors also may not imply the fact of the debt to members of the debtor’s household or to other third parties, with narrow exceptions such as limited location inquiries (940 CMR 7.05 and 7.06). Under 940 CMR 7.07, a creditor may not send collection notices by postcard, add fees or interest not authorized by the agreement or by law, or make false or misleading statements about the debt.

The validation notice

Within five business days after the first communication about a debt, the creditor must give the debtor written notice of the following, unless the first communication already contained it or the debt has been paid (940 CMR 7.08):

• The amount of the debt;
• The name of the creditor to whom it is owed;
• That the debt will be assumed valid unless the debtor disputes it within 30 days; and
• That if the debtor disputes it in writing within 30 days, the creditor will obtain verification.

If the debtor disputes the debt in writing within the 30 days, the creditor must stop collecting the disputed amount until it sends verification by first-class mail. Verification includes documents bearing the debtor’s signature, a ledger or account history, the original creditor’s name and address if different, and any judgment, to the extent the creditor has them.

Old debts and the statute of limitations

Most consumer debts arise from contracts. In Massachusetts, contract actions generally must be brought within six years after the cause of action accrues (G.L. c. 260, § 2).

A debt that can no longer be enforced in court because the limitations period has run is a “time-barred debt.” A creditor that knows, or has reason to know, that a debt is time-barred must disclose that the debt may be too old to sue on when it seeks payment or a new promise to pay (940 CMR 7.07(24)). The required disclosure warns the consumer that a payment, or a signed acknowledgment or new promise to pay, can renew the debt and the time to sue. If you receive a demand on an old debt, get advice before paying anything or signing anything.

Don’t secretly record collection calls

Some consumers want to record abusive calls as evidence. In Massachusetts, secretly recording a phone call without the prior authority of all parties is an “interception” under the wiretap statute (G.L. c. 272, § 99). It is a crime, and it can also lead to civil liability.

Do not record a call secretly. Instead, keep a written log of every call: the date, time, number, caller’s name and what was said. Keep every letter and envelope. If you want a recording, tell the caller and get permission at the start of the call.

Remedies for consumers under Chapter 93A

A violation of c. 93, § 49 is by statute an unfair or deceptive act under Chapter 93A, and the Attorney General’s regulations define practices that are unfair or deceptive. A consumer who has been injured can bring a claim under G.L. c. 93A, § 9:

• Demand letter first. At least 30 days before suing, the consumer must send a written demand identifying the claimant, the unfair practice and the injury. (This is not required for a counterclaim, such as when the consumer has already been sued on the debt.)
• Damages. If the consumer wins, recovery is actual damages or $25, whichever is greater.
• Multiple damages. The court must award two to three times that amount if the violation was willful or knowing, or if the business refused a reasonable settlement in bad faith.
• Attorney’s fees. A consumer who proves a violation is awarded reasonable attorney’s fees and costs, although fees incurred after rejecting a reasonable settlement offer made within 30 days of the demand are denied.

For creditors, the response to a 93A demand letter matters. A business that makes a reasonable written settlement offer within 30 days can limit its exposure. See your company received a 93A demand letter: now what?

A compliance checklist for creditors

• Confirm whether each account is a consumer debt or a business debt.
• Set your phone system to cap initiated calls and texts at two per seven days per debt to personal numbers, and two per 30 days to other numbers.
• Call only between 8:00 a.m. and 9:00 p.m. unless you know the debtor’s waking hours.
• Record and honor every request to stop workplace calls, and send the workplace notice when required.
• Send a compliant validation notice and stop collecting a disputed amount until you verify it.
• Flag accounts that may be time-barred and use the required disclosure.
• List your phone number and office hours on every written communication (940 CMR 7.07(22)).
• Train every employee who talks to customers about past-due accounts.

Getting help with debt collection issues

Whether you are a business collecting what you are owed or a consumer dealing with a collector, knowing these rules protects you. Learn more about collecting on a judgment in Massachusetts and our Massachusetts business law services, or contact our office.

About the Author

Richard Alan Gaudet, Esq. is a Massachusetts attorney at the Law Offices of Richard Alan Gaudet, LLC in Middleton, Massachusetts, who advises businesses and individuals on collections, Chapter 93A claims and commercial disputes. His practice focuses on professional license defense, business law and litigation, family law, and landlord representation, serving clients across Northern, Eastern, and Central Massachusetts. Reach him at 978-273-8337 or rgaudet@gaudetlawoffice.com. Office: 35 Village Rd., Ste 100, Middleton, MA 01949.

ABOUT THIS ARTICLE

This article was prepared by a Massachusetts attorney and is provided solely for general informational and educational purposes directed to members of the general public. It does not constitute legal advice and does not create an attorney-client relationship. The law applicable to any particular situation depends on the specific facts and circumstances of that matter. Readers are encouraged to seek the advice of a licensed Massachusetts attorney before taking any action.