Massachusetts Attorney General Secures $52 Million Debt Relief and Permanent Ban Against Unlicensed Debt Collectors
The Suffolk Superior Court in Massachusetts has issued a Final Judgment by Consent against several debt buyers and their owner, resolving a long-running case initiated by the Massachusetts Attorney General. The judgment mandates approximately $52 million in debt relief for over 6,000 Massachusetts consumers. Additionally, the defendants are permanently prohibited from engaging in any debt buying, selling, or collection activities involving Massachusetts consumers. The lawsuit, filed in February 2024, alleged numerous unfair and deceptive practices under the state’s Consumer Protection Act, G.L. c. 93A. These alleged violations included seizing exempt vehicles, unlicensed debt collection, unauthorized practice of law, overstating prejudgment interest, collecting time-barred debt, and exceeding legal limits on consumer communications. The court had previously granted two preliminary injunctions restricting the defendants' collection activities, including a 2025 order that found a likelihood of success on cla...