Massachusetts AG Settles Abusive Debt Collection Claims Against Mortgage Servicer

Debt Collection  •  Mortgage  •  State AGs

Enforcement_MAOn September 28, the Massachusetts Attorney General’s Office announced that it had entered into a settlement with a national mortgage servicer to resolve allegations that the servicer had engaged in abusive debt collection practices affecting over 5,000 Massachusetts consumers.  The assurance of discontinuance, filed in Suffolk County Superior Court, alleged that the servicer violated regulations promulgated under the Massachusetts Consumer Protection Act, which prevent a debt collector from contacting a consumer more than twice in a seven day or thirty day period, depending on the type of phone number involved.  The Attorney General Office’s further alleged that the servicer failed to comply with Massachusetts regulations requiring debt collectors to provide consumers with a debt validation notice within five days after their initial communication.  Under the terms of the settlement, the servicer agreed to pay a $1.4 million penalty and to discontinue its allegedly unlawful debt collection practices.

 

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