Judge in ACA International v. Healey Issues Order of Clarification

The order clarifies that the court’s prior order has the effect of a preliminary injunction as to AG Healey’s emergency debt collection regulation

5/23/2020 8:00 AM

NewsStateCOVID-19
Judge in ACA International v. Healey Issues Order of Clarification

Judge Richard G. Stearns, of the United States District Court for the District of Massachusetts, granted ACA’s Motion for Clarification in the civil action challenging Massachusetts Attorney General Maura Healey’s emergency regulation, 940 CMR 35.00 , which had halted almost all debt collection activities in the state.

The clarifying order confirms that the court’s prior order of May 6 had the effect of granting ACA a temporary restraining order (TRO) and a preliminary injunction, which will remain in effect unless and until modified by the court.

The regulation had been in effect since March 26, 2020, but the court’s May 6 grant of preliminary relief enjoined the AG’s enforcement of the regulation.

The May 6 order states:  “[T]he court hereby enters a temporary restraining order enjoining the attorney general from enforcing the provisions of the Regulation that ban telephonic communications initiated by the defined debt collectors with consumers in connection with the payment of a debt that is due and owing (the entirety of 940 CMR 35.04). The court also enjoins the Attorney General from enforcing 940 CMR 35.03 in so far as it bars the defined debt collectors from bringing enforcement actions in the state and federal courts of Massachusetts. This Order is intended to have no impact on any other law or Regulation regarding debt collection that is now in force.”

Based on the terms above and on the clarifying order issued this week, the preliminary injunction is expected to remain in effect until a further order of the court modifies or lifts the order or until the court issues a permanent injunction against the Regulation, which would occur only by agreement of the parties or following an adjudication of the case on the merits.

Read more analysis of the ACA International v. Healey decision from ACA’s Corporate Counsel Colin Winkler here.

For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at Licensing@acainternational.org or call (952) 926-6547.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

Judge in ACA International v. Healey Issues Order of Clarification

Judge Richard G. Stearns, of the United States District Court for the District of Massachusetts, granted ACA’s Motion for Clarification in the civil action challenging Massachusetts Attorney General Maura Healey’s emergency regulation, 940 CMR 35.00 , which had halted almost all debt collection activities in the state.

The clarifying order confirms that the court’s prior order of May 6 had the effect of granting ACA a temporary restraining order (TRO) and a preliminary injunction, which will remain in effect unless and until modified by the court.

The regulation had been in effect since March 26, 2020, but the court’s May 6 grant of preliminary relief enjoined the AG’s enforcement of the regulation.

The May 6 order states:  “[T]he court hereby enters a temporary restraining order enjoining the attorney general from enforcing the provisions of the Regulation that ban telephonic communications initiated by the defined debt collectors with consumers in connection with the payment of a debt that is due and owing (the entirety of 940 CMR 35.04). The court also enjoins the Attorney General from enforcing 940 CMR 35.03 in so far as it bars the defined debt collectors from bringing enforcement actions in the state and federal courts of Massachusetts. This Order is intended to have no impact on any other law or Regulation regarding debt collection that is now in force.”

Based on the terms above and on the clarifying order issued this week, the preliminary injunction is expected to remain in effect until a further order of the court modifies or lifts the order or until the court issues a permanent injunction against the Regulation, which would occur only by agreement of the parties or following an adjudication of the case on the merits.

Read more analysis of the ACA International v. Healey decision from ACA’s Corporate Counsel Colin Winkler here.

For more information on how the ACA Licensing staff can assist with your licensing needs, please contact us at Licensing@acainternational.org or call (952) 926-6547.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

Loading...

Loading...

Scroll to Top