Legal Question in Credit and Debt Law in Massachusetts

Re: over $10,000 is fraud??

First, it is illegal to threaten criminal prosecution in order to collect a civil debt. They either have to go to the police or not, but they cannot threaten to do this in order to get someone to pay money. Second, if they have a case, the dollar amount is not the fraud,it is the appication for the credit card and proving that a borrowed the money (that is what a credit card is... a high interest rate loan) without the intention or ability to repay it. If nearly half the debt is fees and add- ons, that would be a tough case to prove. Third, your mother should consult with an attorney who handles bankruptcy matters. Even though there are special rules about collecting from the proceeds of social security, that doesn't stop a party from suing and freezing her savings/checking account until she can prove the source of income in it. If she has liquid assets (bank account, stock, bonds, etc.) she should consult with an attorney to legally shelter them.

Re: over $10,000 is fraud??

It sounds like the collection agency might be in violation of the Fair Debt Collection Practices Act, 15 U.S.C 1692e, which prohibits the representation or implication by a debt collector that the nonpayment of any consumer debt will result in arrest or imprisonment. A violation of this statute may give your mother a private right of action against the debt collection agency for actual and statutory damages, plus reasonable attorney fees.