Debt collection company to pay $4M to Massachusetts

November 11, 2019 GMT

BOSTON (AP) — The attorney general of Massachusetts says one of the nation’s largest debt collection companies has agreed to pay $4 million to settle allegations that it engaged in deceptive and unfair collection practices.

Attorney General Maura Healy in a statement Monday said Virginia-based Portfolio Recovery Associates LLC “systematically and repeatedly broke our laws” and went after low-income, elderly, and disabled consumers.

The settlement will be used to pay back thousands of consumers.

The state alleged Portfolio demanded consumers pay debts that the company could not substantiate; misled consumers about protections for exempt sources of income; and often failed to verify the accuracy of consumer information it reported to credit reporting agencies.

The attorney general says Portfolio has agreed to change its business practices.

A voicemail was left with the company Monday.