Massachusetts Attorney General’s Moratorium on Collections is Deemed Unconstitutional

The emergency regulation by MA Attorney General, Maura Healy, putting a 90-day moratorium on certain debt collections has been overturned, in part by USDC Federal Judge, D.J. Stearns, who stated in his Opinion that the measure violates the First Amendment rights of collection agencies without adding meaningful protections for consumers.

As a result of this decision, community associations and their property managers can now resume their pre COVID-19 business practices of sending out letters to their community members that are in default reminding them to pay their monthly condominium fees/costs and indicating that if delinquencies are not resolved, the account will be turned over to legal for lien enforcement action. As we all know, the payment of monthly condominium payments is the life blood that allows all associations the ability to continue to provide critical maintenance and services to all of its members. This is welcome news that will allow associations the ability to continue to enforce its rights for payments from all of its community members.

We will continue to monitor developments in this area in light of the COVID-19 pandemic and report to our clients on important changes.

If you would like to read the USDC Judge’s Decision and Order, click here.

pdfDebt Collection Moratorium Reversal of Decision.pdf