The Consumer Debt Initiative helps individuals at the most critical juncture in the life of a debt: the collection action. The Initiative also empowers people by connecting them to resources upstream that help prevent future debt problems — and potential legal issues.
Many people don’t perceive having credit card debt as a legal problem. If people have questions about the notice they receive to come to court regarding a debt, they usually do not know where to turn to get answers or don’t have resources to pay an expert, typically a lawyer. As a result, they remain unaware of their legal rights and intimidated by a complex legal system. This often results in an individual failing to take any action when called to court, leading automatically to a default judgment entered against them. A default judgment on a person’s credit report can have a negative impact on a variety of things, including future employment opportunities, government subsidies and housing options (to name just a few).
Across Massachusetts, up to 95% of consumers in debt collections cases don’t show up to court. Of those who do appear, only 1.5% are represented by a legal advocate. The data is stark both nationally and locally of the disparate impact of debt collections cases on people of color. In Hampden County alone, 28% of people have a debt in collection and that number increases to 46% in communities of color.
Even when consumers do show up to their court hearing, without a legal advocate to review their case, many agree to repay debt that is not actually theirs or debt that has not been transferred properly from title holder to title holder or to repay debt from income that is statutorily protected from debt collection.
The Consumer Debt Initiative (CDI), run by the Center for Social Justice at the Western New England University School of Law with major funding through a grant by the MassMutual Foundation and financial support from the MassMutual Pro Bono Committee, helps individuals at the most critical juncture in the life of a debt: the collection action. In addition to financial support, MassMutual employees join other local volunteers to represent consumer defendants at their collection hearings and/or to help them understand the law and their rights.
Another part of the Consumer Debt Initiative is a Legal Kiosk initiative which is also managed by WNEU’s Center for Social Justice. Legal kiosks are free computer stations located across the great Springfield, MA area. They provide access points to help individuals without access to Wi-Fi or technology to connect with the justice system. At a legal kiosk, one can find free civil legal service providers nearby, browse legal resources, print and scan documents, attend virtual meetings and fill and submit forms. These resources cover areas of law including Housing, family, money, debt and taxes, immigration, disability and public benefits. Much of the material is available in Spanish as well as English. Any member of the public is free to use a kiosk at any location and where there will be a person trained in using the station to assist.