The firm relied on an automatic system to identify cases to get to court, often together with little overview, and in numerous instances gathered debts depending on inaccurate or even incomplete details, according to the problem.
The company used the judicial program to intimidate and perturb people, Healey said within a statement. This particular firm and its owners got advantage of thousands of Massachusetts consumers by strenuous money that they had no right to collect and on the basis regarding debts they could not prove.
The businesses owners, Ronald E. Lustig and Kenneth C. Milson, who were named in the problem, did not return calls for comment Tuesday.
Mark Smith, the attorney representing Lustig, Wilson, and the firm, said his clients cooperated together with Healeys analysis and look forward to being justified in court.
The debt-collection industry as well as the law firms that will pursue series cases came under scrutiny in recent years. In Come july 1st 2014, the federal Customer Financial Safety Bureau sued an Atlanta firm, Frederick J. Hanna amp; Acquaintances, alleging it operated being a debt mill, churning out 350, 000 lawsuits in opposition to consumers that may not have got owed anything.