On September 7, 2021, the Massachusetts Attorney General (AG) announced that it reached a settlement with a debt collection company, resolving allegations that the company engaged in unfair and deceptive debt collection practices in violation of state law. In particular, the company is alleged to have (1) initiated more than two phone calls to a consumer in a seven-day period in an attempt to collect a debt, (2) initiated more than two phone calls to a consumer’s place of employment in a 30-day period, and (3) attempted to collect on time-barred debt. The AG also alleged that the company engaged in unfair and deceptive debt collection practices with respect to its servicing of private student loan debt on behalf of the National Collegiate Student Loan Trust (NCSLT). Specifically, the company is alleged to have executed affidavits claiming that it had personal knowledge of facts about the student loan debt alleged in those affidavits when that was not in fact the case. The company also allegedly executed affidavits that stated that a particular student loan was owned by NCSLT when there in fact was not sufficient documentation to establish the chain of title of the loan.
Under the settlement agreement, the company has agreed to pay $2.25 million in consumer relief and institute various process changes to prevent excessive calls, the collection on time-barred debt, and the execution of inaccurate affidavits.
The post Massachusetts AG Settles with Debt Collector for $2.25 Million appeared first on Consumer Finance Enforcement Watch.