On August 31, the Massachusetts AG filed a filed a proposed consent judgment in Suffolk County Superior Court to resolve allegations that a debt buyer, affiliated entities, and their operator violated the Massachusetts Consumer Protection Act through unfair and deceptive debt collection practices. If entered by the court, the judgment would prohibit the defendants from engaging in debt collection involving Massachusetts consumers and impose a suspended $650,000 monetary judgment.
The Attorney General filed the action in February 2024 and amended the complaint in October 2025. The Commonwealth alleges that the defendants engaged in several unlawful collection practices, including seizing exempt vehicles, collecting debts without required licensing, engaging in the unauthorized practice of law, misrepresenting creditor information, overstating prejudgment interest, pursuing debts outside the applicable statute of limitations, and exceeding legal limits on consumer communications.
If approved, the proposed judgment would:
- Prohibit future Massachusetts collection activity. The defendants could not collect debts from Massachusetts consumers, accept payments on those debts, purchase debts owed by Massachusetts consumers, or sell or transfer those debts.
- Wind down existing collection cases. The defendants would have 120 days to dismiss pending civil and small claims matters in which judgment has not entered and one year to file satisfactions in matters where judgment has already been entered.
- End licensed collection operations. The individual operator would be required to permanently surrender his Massachusetts debt collector license, while the defendants would be barred from applying for another license. The proposal also requires changes to the defendants’ remaining business entities to reflect the end of Massachusetts collection activity.
- Suspend a $650,000 monetary judgment subject to compliance. The judgment would remain suspended based on the defendants’ financial condition but could become payable if the court finds certain financial disclosures were inaccurate or the defendants violate specified injunctive provisions during the 13-year compliance period.
The defendants reported holding approximately 6,479 debts owed by Massachusetts consumers with a stated balance of approximately $52.8 million.
Putting It Into Practice: This action adds to recent Massachusetts enforcement focused on debt collection and licensing (previously discussed here and here). Debt buyers, collectors, and servicers operating in Massachusetts should review their licensing status and collection procedures and update compliance controls as necessary.