On August 31, the Massachusetts attorney general filed a proposed consent judgment in Suffolk County Superior Court that, if approved, would permanently bar a debt buyer and its operator from all collection activity involving Massachusetts consumers. The proposed judgment, which would resolve allegations that the defendants violated the state’s consumer protection act through unfair and deceptive debt collection practices — including seizing exempt vehicles, engaging in unlicensed debt collection and the unauthorized practice of law, misrepresenting creditor identities, overstating prejudgment interest, and collecting debts outside the applicable statute of limitations — would require the defendants to dismiss all pending collection cases within 120 days, file satisfactions of judgment in all cases where a judgment entered within one year, and release all real estate liens, and would effectively render uncollectable approximately 6,479 consumer debts with a stated aggregate balance of roughly $52.8 million.

The proposed consent judgment would also permanently bar the defendants from purchasing debts owed by Massachusetts consumers, selling or transferring such debts, and applying for a debt collector license. The operator would be required to permanently surrender his debt collector license, dissolve one corporate entity and amend the business descriptions of remaining entities to reflect that they no longer engage in debt collection involving Massachusetts consumers. A $650,000 civil penalty would be entered but suspended based on the defendants’ financial condition, subject to a 13-year compliance period; if the court determines that the defendants violated any injunctive terms during that period, the full penalty becomes immediately due.