Massachusetts settles with financial company

State Issues State Attorney General Massachusetts Enforcement Settlement Consumer Finance Debt Collection

On April 13, the Massachusetts attorney general announced a settlement with a California-based finance company (defendant) resolving allegations that it violated Massachusetts law by purchasing and collecting on dog leases – which are illegal in Massachusetts. The settlement also alleges that the company engaged in illegal debt collection practices such as calling debtors too frequently while attempting to collect on the leases. Under the terms of the settlement, the defendant must pay over $930,000, which includes $175,000 in restitution to approximately 200 consumers, and a $50,000 fine. The defendant is prohibited from collecting on any active leases involving dogs in Massachusetts and must transfer full ownerships of the dogs to the consumers. The defendant must also cancel any outstanding amount owed on the leases, totaling approximately $700,000.

The Massachusetts AG has been investigating financial companies who originate or purchase dog leases – calling the practice “exploitive” because it uses “dogs as emotional leverage” over debtors – and encouraged consumers who are victims of dog leases to call the AG’s office or to file a complaint online.