On June 22, 2020, the Massachusetts Attorney General announced a settlement with a Florida-based mortgage loan servicer following an investigation into the servicer’s debt collection practices.
Specifically, the settlement resolves allegations that the servicer made excessive calls to distressed homeowners and failed to provide written notice of their right to receive verification and an accounting of the amount owed. The Massachusetts AG’s debt collection regulations limit the frequency with which a debt collector may initiate contact with a borrower, and requires written notice to be sent within a certain time period following the initial communication.
The terms of the settlement require the servicer to pay $565,000 to the state. In addition, the servicer has changed its practices to comply with Massachusetts law, and agreed to monitoring by the Massachusetts AG’s office for a period of two years.
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