Massachusetts Will Receive $2.25 Million From a Settlement With a National Debt Collection Company
A national debt collection company has agreed to pay $2.25 million and change its business practices to resolve allegations that it used unfair and deceptive debt collection practices against consumers, including student borrowers, Attorney General Maura Healey announced today, September 7.
The assurance of discontinuance, filed today in Suffolk County Superior Court with Transworld Systems, Inc., resolves allegations that the company violated the AG’s Debt Collection Regulations by making high volume calls to consumers, regularly attempting to collect on time-barred debts, and using false and misleading affidavits in an effort to collect private student loan debt on behalf of the National Collegiate Student Loan Trusts (NCT).
“This company routinely violated state laws and regulations by harassing and misleading vulnerable, low-income consumers and student borrowers,” said AG Healey. “One of my office’s top priorities is to protect the economic security of Massachusetts residents, and we will take action against companies that engage in illegal debt collection practices.”
