Small claims court is supposed to be a so-called people’s court with informal procedures that make it easy to bring your claim. But an investigation by the GBH News Center for Investigative Reporting finds that the state’s courts are flooded with corporate debt collectors pursuing low-income people. Losing a case can lead to wage garnishments, car seizures and more.
The rules, to go into effect in February, will require courts to hold so-called payment hearings to assure that low-income people aren't agreeing to give up legally protected income like social security to creditors.
The legislation’s sponsors are reviving the call to protect debtors as new trial court data shows more than 92,000 consumer debt cases were filed last year.