Massachusetts AG Settles Online Loan Services for Alleged Debt Collection Abuse | Goodwin

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August 12, 2021 Attorney General of Massachusetts (AG) announcedbut settlementwith an online loan service, after reviewing allegations that the company used improper debt collection methods in violation of AG’s debt collection rules.

After the AG office investigated the company, Massachusetts AG said the company, which services short-term installment loans, did not provide verification notices to consumers who missed payments. Under the AG’s debt collection provisions, consumers have the right to receive certain documents to prove their debt, including loans, balances and debt accruals.

Massachusetts AG also said the company over-phoned debtors on the phone to collect the debt, initiating more than two phone calls to the debtor within seven days in violation of debt collection rules.

The company has now brought its practice in line with applicable regulations and the terms of the settlement agreement require the company to continue to comply with them. The company will also pay a $ 1.6 million fine to the Commonwealth.

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