On September 12, 2025, the Massachusetts Division of Banks announced final amendments to its regulations regarding the conduct of debt collectors, student loan servicers, and third party loan servicers.  The amendments also address aspects of licensing and registration procedures.  The amendments became effective September 26, 2025.

Notably, the amendments reflect previous regulatory guidance that the term “debt collector” does not include a “passive debt buyer,” defined as:

A person engaged solely in the practice of purchasing delinquent consumer debts for investment purposes who collects on consumer debts through Massachusetts licensed debt collectors or Massachusetts licensed attorneys and who does not undertake any activities to directly collect debts from consumers.

Thus, passive debt buyers, as defined, are not subject to the Division of Banks’ licensing provisions, though they are still subject to the Attorney General’s conduct related regulations, 940 CMR § 7.03, et seq.

Additional amendments provide that debt collectors’ compliance with certain provisions of Regulation F will constitute compliance with comparable provisions of the Massachusetts regulations related to:

  • False, Deceptive, or Misleading Representations of Means (12 CFR § 1006.18 – 209 CMR § 18.18);
  • Unfair or Unconscionable Means (12 CFR § 1006.22 – 209 CMR § 18.22);
  • Collection of Time Barred Debt (12 CFR § 1006.26 – 209 CMR § 18.26);
  • Required Actions Prior to Furnishing Information (12 CFR § 1006.30(a) – 209 CMR § 18.30(1));
  • Prohibition on the Sale, Transfer for Consideration, or Placement for Collection of Certain Debts (12 CFR § 1006.30(b) – 209 CMR § 18.30(2));
  • Multiple Debts (12 CFR § 1006.30(c) – 209 CMR 18.30(3));
  • Legal Actions by Debt Collectors (12 CFR § 1006.30(d) – 209 CMR §18.30(5));
  • Furnishing Certain Deceptive Forms (12 CFR § 1006.30(e) – 209 CMR § 18.30(6));
  • Validation of Debts (12 CFR § 1006.34 – 209 CMR § 18.34);
  • Disputes and Requests for Original-Creditor Information (12 CFR §1006.38 – 209 CMR § 18.38).

This Member Alert is intended for members of the Receivables Management Association International, is for informational purposes only, and is in no way intended to provide legal advice. Members are encouraged to consult with an attorney of their choice for legal advice concerning this matter.