In debt? New Mo. rules seek to stop abusive practices

Missouri Attorney General Chris Koster’s proposed two rules aims at curbing abusive debt-collection processes went into effect yesterday.

The first rule makes it illegal to file lawsuits on debt that’s beyond the statute of limitations, that has been discharged in bankruptcy or that’s been declared void or unenforceable by a court. The second prohibits debt collectors from using tactics to convince consumers to reaffirm uncollectible debt in the prior three categories, according to a news release.

“I am hopeful our new regulations will stymie unethical debt collectors from perpetuating their unfair and deceptive business practices,” said Koster, who’s up for a gubernatorial bid this fall, in the release.

The regulations come after Koster’s office identified a rise in unethical debt collection in Missouri during the past decade. During that time, secondary debt collection companies grew, purchasing charged-off debt at a discount and attempting to collect it unlawfully.

Koster proposed the regulations in December after conferring with nonprofit state legal aid offices.