Massachusetts AG Takes Action Against Debt Collection Law Firm
On December 21, Massachusetts AG Maura Healey filed a lawsuit against a Massachusetts-based debt collection law firm and its two owners for allegedly violating consumer protection laws by suing consumers for debts that were inaccurate or for debts they did not owe. The AG claims that, since 2011, the law firm: (i) pursued consumers who had exempt income, serving some of them with civil arrest warrants; (ii) demanded payments on old debts without having meaningful proof that the consumer owed the debt or that the debt amount was accurate; (iii) sued consumers without meaningful attorney involvement in the lawsuits; (iv) used sworn statements by debt buyers in collection lawsuits, even though it knew the affidavits were often generated without meaningful documentation or knowledge of the debt; (v) demanded payment of debts that may not have been within the statute of limitations for bringing a lawsuit; and (vi) continued to demand payments on alleged debts even after the cases were dismissed in court for lack of proof. The AG’s suit seeks injunctive relief, restitution to consumers, and civil penalties.