More than 6,000 Massachusetts consumers are set to receive relief from roughly $52 million in debt after the state secured a major settlement against an alleged predatory debt collector.
Here's what to know
According to Boston.com, Attorney General Andrea Campbell announced on Sept. 15 that Massachusetts had settled with Avon-based debt collector Judgment Acquisitions Unlimited, Champion Funding Inc., and owner Andrew Metcalf.
The deal wipes out about $52 million in debt for more than 6,000 consumers and permanently blocks Metcalf and his companies from running a debt-collection business in Massachusetts.
The agreement closes out a lawsuit the attorney general's office filed in February 2024, alleging the companies violated the Massachusetts Consumer Protection Act through "unfair and deceptive collection practices."
Campbell said, "As Massachusetts residents continue to face rising costs, they should not be subject to aggressive and unlawful debt collection practices, like those Andrew Metcalf allegedly engaged in."
The settlement further bars Metcalf and his companies from buying, selling, transferring, assigning, or attempting to collect debts allegedly owed by Massachusetts consumers. They also cannot apply for a debt collector license in Massachusetts.
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More background
The attorney general's office said the companies were not carrying out standard repossessions over missed car payments. Instead, the seized vehicles were allegedly unrelated to any auto loans, and some were so low in value that the law exempted them from seizure; the office said those cars were often the consumers' only way to get to work.
The state obtained two preliminary injunctions intended to halt practices it said were harming consumers.
What's being done?
If the companies violate the agreement, they face a $650,000 suspended penalty.
Although the settlement does not amount to a nationwide prohibition, it does prevent debt-collection activity in or from Massachusetts, effectively shutting down the companies' ability to operate in the state.
"Because of this settlement, thousands of families in the Commonwealth will be provided with debt relief and these predatory companies will never be allowed to operate in Massachusetts again," Campbell said.
Where can I learn more?
Massachusetts' case is part of a broader effort to curb abusive collection tactics and ease debt that can leave families on shaky financial ground. Similar action in Hawaii and other states shows these consumer protection battles are playing out well beyond one company or one lawsuit.
• In Hawaii, a new law could wipe out $91 million in debt for 50,000 residents.
• Across the U.S., AI collectors are becoming a growing force chasing disputed or paid bills.
• In Illinois, lawmakers advanced a ban on junk fees they say costs families thousands.
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