A month before it was sued by the Attorney General of Massachusetts for violating the state’s limit on how many collection calls can be made to an individual, among other allegations, Credit Acceptance Corp. filed a lawsuit of its own, against the AG, challenging the constitutionality of that law.
A copy of the complaint in the case of Credit Acceptance Corp. v. Maura Healey can be accessed by clicking here.
The plaintiffs reference the pending enforcement action in their complaint, saying the “threatened enforcement of an unconstitutional Massachusetts regulation that deprives Credit Acceptance of the right to free speech guaranteed by the First Amendment of the United States Constitution,” and has left the company with no option but to repossess vehicles instead of trying to get in touch with individuals to work out payment arrangements.
News of the lender’s lawsuit against the Attorney General’s office was first published by another outlet, but that report did not mention the subsequent lawsuit launched by the AG against Credit Acceptance.
The lawsuit filed by Credit Acceptance challenges a regulation in Massachusetts limiting the number of times a creditor or debt collector can initiate a communication with an individual — whether by phone call, text message, or recorded audio message — to two attempts per seven-day period.
Such restrictions, Credit Acceptance argues in its complaint, “decreases the opportunities available to those customers to effectively manage repayment and maintain their financial wellness.”
The complaint also referenced a failed bid by Healey’s to enact emergency regulations that barred collectors from, among other things, being able to initiate phone conversations with individuals who have unpaid debts.
Healey is seeking as much as $120 million in damages in her lawsuit against Credit Acceptance. In the suit, Credit Acceptance is accused of making 1.5 million phone calls that violated the state’s contact limit regulations.
