Virginia-based debt collection company reaches settlement with Massachusetts

(Source: MGN)
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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.



 
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