Tag Archives: consumer

More Relief for Consumers

More good news! An update increasing the dollar amounts for bankruptcy exemptions in Massachusetts made its way to the Governor Patrick’s desk just before New Years Eve. Even though January 5th marked the end of the 2009-2010 session, the governor still has 10 full days to act on the bills on his desk.  Any bill that goes without action for more than 10 days will receive a so-called pocket veto.  Today is day 7.

As Issue Spot noted just weeks ago, personal property exemptions have long been in desperate need of modernization.  According to the Massachusetts statute, MGL Chapter 235, section 34 —last updated more than 30 years ago — the intent of the original law was to balance the legal rights of creditors against a debtor’s need for basic necessities in order to maintain a home and earn a living. 

The present law exempts from seizure things like 2 cows, 12 sheep, 2 swine and 4 tons of hay, and this is almost laughable in the context of how most people earn their livings or look for employment in 2011. Updating this law would increase the value of property, earnings and savings exempt from seizure during debt collection, and also permit debtors to keep computers. As families and communities continue to struggle with the impact of the economic downturn, the process of debt collection needs to change to one that is fair, at the same time facilitating the ability of debtors to fulfill their obligations.

The BBA had filed a bill several years ago that would update exemptions. Not surprisingly many bankruptcy attorneys eventually came to view the dollar amounts in that original bill as obsolete. During the summer of 2010 the BBA’s Bankruptcy Public Policy Committee identified key exemptions in our draft that could be revised to better reflect the needs of today’s household.  It was their work this summer which really brought this issue into focus for us and kept it on our radar in the final days of session. 

The BBA’s Bankruptcy Public Policy Committee had urged us to work with the National Consumer Law Center, and to adopt the exemption amounts that were in the NCLC’s bill.  As we revised our own bill we learned that the NCLC’s bill had already made enormous progress.  Working with NCLC on this issue proved to be successful. 

-Kathleen Joyce

Government Relations Director

Boston Bar Association

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Finance Reform is Important for Consumers

As announced in this week’s BBA Week, the Consumer Finance Working Group is now the Consumer Finance Committee.  The Committee will review consumer finance products and assess recent problems that have arisen.  Composed of lawyers who practice in the Massachusetts state courts and in the federal court, and who represent both creditors and debtors, the timing of the group’s work could not be better as national attention has focused on matters of consumer protection.

Just last month, Attorney General Martha Coakley joined President Barack Obama as he signed into law the historic financial reforms included in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.  That bill creates the Consumer Financial Protection Bureau to help protect consumers when they make investments, take out mortgages, and use credit cards.

Here’s a snapshot at what the BBA has been doing in this area.

Since Spring 2008, the BBA’s Consumer Finance Working Group has been looking at several issues including the proliferation of deceptive “loan modification programs” on the radio and Internet, and the explosion in consumer medical debt and issues with consumer medical debt collections.  Adam Ruttenberg and Andrew Dennington, co-chairs of the Consumer Finance Working Group and now of the Consumer Finance Committee, focused their efforts on amending the Attorney General regulations on consumer debt collection after meeting members of the AG’s Consumer Protection Division.  The group proposed amendments to the AG regulations which would largely track the more modern federal Fair Debt Collection Practices Act, and recent revisions of Massachusetts Division of Banks regulations regarding activities by licensed debt collectors.  These amendments were included in the First Report of Consumer Finance Working Group and will ensure that debt collection practices that are unfair or deceptive when conducted by a licensed debt collector, will likewise be unfair or deceptive when performed by a creditor. 

After the BBA Council approved the Report and the recommendations at its July meeting, they were submitted to the Attorney General’s office.  Building upon the momentum generated by the First Report, the new Consumer Finance Committee held their first official meeting on August 10th to explore options for their next project.  In the meantime, on September 15th the Consumer Finance Committee will co-sponsor a CLE on the implementation of the new consumer protection legislation.  The CLE will feature a panel discussion on topics such as the creation of the Consumer Financial Protection Bureau, enhancement of bank-affiliate and bank-insider transaction restrictions, and anti-predatory lending provisions.

– Kathleen M. Joyce

Government Relations Director

Boston Bar Association

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