Massachusetts Commercial Collection Agency
For residents of Massachusetts, statutes of limitations and other debt collection laws are maintained to protect debtors and to ensure the debt collection process is safe and lawful. At Prestige Services, Inc., our goal is to provide a variety of Massachusetts’s collection laws and economy statistics. These statistics include statute of limitations, interest rates, collection agency bond/license data, and state debt, and spending factors.
Spending in Massachusetts increased slightly between 2015 and 2014, from $53.7 billion to $55 billion (state funds of $45.5 billion, federal funds of $9.4 billion). With a population of almost 6.8 million, the median household income has been around $64,000 and per capita spending has averaged $8,000. Massachusetts’s debt (2012) was a staggering $129.5 billion for the state and almost $20,000 for per capita debt. While its numbers have fluctuated for spending and debt, its credit rating has steadily improved since its AA- score in 2004: it moved to AA from 2005–2010 to AA+ from 2012–2014. (BallotPedia.org)
Massachusetts’s commercial debt collection laws have some similar aspects to the federal consumer-driven Fair Debt Collection Practices Act (FDPA). A creditor of Massachusetts can choose three or more locations when deciding to bring suit in a business-to-business transaction (Collections-Law.com). The state also has Forum Selection Clauses, which allow the creditor to take a claim/dispute to court where they are located, instead of traveling to a debtor’s location. As a business owner, it’s important to stay updated on Massachusetts’s commercial laws and data to protect yourself and your business.
Check Laws by Cities in Massachusetts
SUMMARY OF MASSACHUSETTS COLLECTION LAWS*
INTEREST RATE
Legal: 6% – Judgment 12% – Contract 12%
STATUTE OF LIMITATIONS (IN YEARS)
Open Acct on Contract 6 – Contract 6 – Sales (UCC) Contract 4 – Domestic Judgment 20 (presumed satisfied after 20 years) – Foreign Judgment 20 – Contract Under Seal: 20
BAD CHECK LAWS (CIVIL PENALTY)
Amount due, costs of suit, protest fees Additional damages $100 – $500 can be assessed.
GENERAL GARNISHMENT EXEMPTIONS
$125 a week
COLLECTION AGENCY BOND & LICENSE
Bond: $10,000 -$25,000 – License: Yes – Fee: Determined by commissioner
* These are not comprehensive statutes and therefore PSICollect.com and Prestige Services, Inc. disclaims any liability resulting from reliance by any party upon the legality and accuracy of the contents thereof.
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