Ditech Financial fined $1.4 million for “abusive debt collection practices” in Massachusetts

Ditech Financial will pay $1.4 million to the state of Massachusetts to settle charges that the company engaged in “abusive debt collection practices” by excessively calling borrowers to collect payment as well as not property notifying some borrowers of their mortgage information, the state’s attorney general announced this week.

According to the announcement from Massachusetts Attorney General Maura Healey, Ditech Financial, formerly known as Green Tree Servicing, agreed to an “assurance of discontinuance,” which requires Ditech to stop making “excessive debt collection calls” to consumers.

The order also requires Ditect to provide written notice regarding the borrowers’ right to receive detailed information about any debts that Ditech sought to collect, both of which are required by state law.

The order settles claims uncovered by an investigation by Healey’s office into Ditech’s debt collection practices in the state.

Healey’s office alleged that since 2012, Ditech “routinely violated” the state’s laws.

According to Healey’s office, Ditech employees allegedly called borrowers far more often on a daily basis than allowed by state law excess of the number of calls permitted by state law. In some cases, Ditech allegedly called the same borrower as many as 12 times in a single day.

The AG’s Office also found that Ditech failed to notify borrowers of their right to seek detailed information regarding their mortgage debt.

Under Massachusetts state law, mortgage borrowers have the right to verify the amounts owed on a debt in collection and to confirm that the party seeking to collect on the debt has the legal right to do so.

Read on.

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2 responses to “Ditech Financial fined $1.4 million for “abusive debt collection practices” in Massachusetts

  1. Reblogged this on California Freelance Paralegal and commented:
    If Ditech was calling borrowers as many as 12 times in a single day they were also violating the Fair Debt Collection Practices Act as well as state law. The Feds should go after them as well. And they need to make the fines high enough so that it really hits them in the wallet.

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