Massachusetts reached a settlement that cancels about $52 million in alleged debt for more than 6,000 consumers and permanently bars Avon-based collector Andrew Metcalf and his firms from operating in the state. The attorney general alleged "unfair and deceptive" collection practices, including seizures of vehicles unrelated to auto loans. The agreement forbids the companies from buying or attempting to collect Massachusetts debts and carries a suspended $650,000 penalty for violations. The case is part of broader national efforts to rein in abusive collection tactics.
Massachusetts Erases $52M in Debt for 6,000 Consumers; Collector Permanently Banned
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Massachusetts Attorney General Andrea Campbell announced on Sept. 15 that her office reached a settlement with Avon-based debt collectors Judgment Acquisitions Unlimited, Champion Funding Inc., and their owner, Andrew Metcalf. The agreement cancels roughly $52 million in alleged debts for more than 6,000 consumers and permanently bars Metcalf and his companies from operating a debt-collection business in the Commonwealth.
What the Settlement Does
The settlement resolves a February 2024 lawsuit alleging violations of the Massachusetts Consumer Protection Act through "unfair and deceptive" collection practices. Under the agreement, the defendants are prohibited from buying, selling, transferring, assigning, or attempting to collect debts tied to Massachusetts consumers. They also may not apply for a debt-collector license in the state. Massachusetts secured two preliminary injunctions earlier in the case to halt the practices while litigation proceeded.
The attorney general's office said the companies did not carry out standard auto repossessions for missed loan payments. Instead, vehicles were allegedly seized that were unrelated to auto loans; some were so low in value that state law exempted them from repossession. The office noted those cars were often consumers' only means of getting to work.
If the defendants breach the settlement, they would face a suspended civil penalty of $650,000. While the agreement does not impose a nationwide ban, it prevents the companies from engaging in debt-collection activity in or originating from Massachusetts, effectively ending their ability to operate in the state.
"As Massachusetts residents continue to face rising costs, they should not be subject to aggressive and unlawful debt collection practices, like those Andrew Metcalf allegedly engaged in," Attorney General Andrea Campbell said.
Broader Context
Massachusetts' action is part of a wider effort across the U.S. to curb abusive collection tactics and provide relief to overstretched families. Other states are pursuing similar measures: lawmakers in Hawaii have advanced proposals that could wipe out about $91 million in debt for roughly 50,000 residents, Illinois has moved to ban certain "junk" fees, and regulators are increasingly scrutinizing automated and AI-driven debt collectors.
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