BOSTON (WWLP) – Massachusetts Attorney General Maura Healey has settled a lawsuit with online loan servicer Avant over claims that the company used abusive debt collection practices against consumers.
The $1.6 million settlement resolves allegations that the company violated the AG’s debt collection regulations by failing to provide consumers proper debt validation notices and making illegal, high volume debt collection calls to consumers.
Avant is an online loan servicer for short term installment loans. The AG’s Office began an investigation into Avant after receiving complaints from consumers that included failing to provide proper validation notices to consumers who fell behind on payments and aggressive debt collection in violation of the debt collection regulations.
The assurance of discontinuance requires them to continue to comply with Massachusetts laws and regulations. Avant has now corrected its practices, including sending the required validation notice in its collection letters for consumers falling behind on payments, and updating its call policy to comply with state regulations. The $1.6 million payment will go to the Local Consumer Aid Fund to help support, protect, and advocate for consumers across the state on a variety of issues.