Attorneys General Move to Limit Debt Collection in Response to COVID-19 Pandemic

  • AGs across the country are taking action to limit or cease debt collection during the COVID-19 pandemic.
  • Massachusetts AG Maura Healey issued emergency regulations placing new limits on debt collection activities, including prohibiting creditors and debt collectors from engaging in activities that would require people to leave their houses or interact with others in person, like filing new lawsuits, repossessing cars, or visiting debtors at their homes or work places, and also prohibiting debt collection agencies and debt buyers from making unsolicited debt collection telephone calls to consumers.
  • North Carolina AG Josh Stein temporarily suspended debt collection efforts by the state’s Department of Justice. He also sent a letter to local and municipal utilities urging them not to disconnect residents with unpaid utility bills from essential services such as water, electricity, and gas, and to suspend late fees for nonpayment of utility bills.
  • As previously reported, New York AG Letitia James announced the temporary suspension of the collection of medical and student debt owed to the state and referred to the AG’s office for collection. The accrual of interest and the collection of fees on these debts will also be automatically suspended.