We’ve often discussed the down-and-dirty tactics that some debt collectors resort to when attempting to collect a debt. Most often, the federal Fair Debt Collection Practices Act protects consumers from unsavory debt collection practices. Few states have debt collection-related laws on the books; those that do typically have licensing laws for debt collectors. Unfortunately, Massachusetts is not one of them. That’s why debt collectors like Daniel W. Goldstone, of Norfolk Financial Corp., can skirt the law.

The Boston Globe reports that Goldstone’s Norfolk Financial would routinely seek and obtain legal judgments against consumers who owed small debts. Sometimes, there would be scant evidence that the debt was owed; other times, the consumer was “notified” at the incorrect address and didn’t even know that he or she was being sued. After obtaining a judgment against a consumer in Worcester County, Norfolk Financial would get the sheriff’s department to tow the consumer’s car away. In order to get the car back, the consumer would have to pay the amount owed, plus $600 in fees to the sheriff. If the consumer couldn’t come up with the money, the car would be towed.

According to the Globe report, Goldstone was basically run out of town, but he’s now back. Calling himself a “debt buyer,” he has other attorneys and other collectors doing his dirty work. Since Norfolk Financial isn’t actually collecting the debt, it can conduct business in Massachusetts and state regulators have their hands tied.

The article notes that there is pending state legislation that would raise the exemption for seizing cars, so that a consumer would get to keep $7,500 of the car’s value, as opposed to the $700 they are currently entitled to. Needless to say, Goldstone is opposing the bill.