Massachusetts Debt Collection Settlement Could Wipe Out $53 Million in Consumer Debt
A proposed Massachusetts settlement could eliminate thousands of alleged consumer debts and permanently end the defendants’ debt collection operations in the state.
The agreement between the Massachusetts Office of the Attorney General and Avon businessman Andrew Metcalf was filed in Suffolk County Superior Court.
Under the proposed settlement, Metcalf would surrender his Massachusetts debt collection license and forgive a portfolio containing approximately 6,500 debts allegedly owed by Massachusetts consumers, according to court documents.
The settlement would resolve a lawsuit filed by the state in 2024 against Metcalf and his companies, Champion Funding Inc., Champion Funding LLC, and Judgment Acquisitions Unlimited.
Settlement Addresses 6,500 Consumer Debts
The portfolio covered by the agreement has a stated total balance of approximately $53 million, according to the joint motion seeking entry of the final judgment.
The relief extends beyond cancelling balances. According to consumer advocates cited in the report, the agreement provides mechanisms for certain existing court judgments to be vacated, property liens to be released, and seized vehicles to be returned.
Matt Brooks, managing attorney for the Consumer Rights Unit at Greater Boston Legal Services, described the proposed agreement as a significant outcome for Massachusetts consumers because it addresses both outstanding debts and consequences arising from previous collection actions.
Massachusetts Attorney General Andrea Joy Campbell said the settlement would provide debt relief to thousands of families and prevent the companies from operating in Massachusetts again.
Case Involved Alleged Debt Collection Practices
The Attorney General’s Office alleged that Metcalf and the companies engaged in unfair and deceptive conduct in violation of the Massachusetts Consumer Protection Act.
Among the allegations were claims that vehicles were unlawfully seized as part of efforts to collect older consumer debts. The allegations included instances in which vehicles were allegedly taken from individuals who did not owe the debts being pursued.
The practices had also been the subject of other litigation. According to a 2024 GBH News investigation, at least 20 legal complaints had been filed in state and federal courts against Metcalf and his companies since 2019.
The proposed settlement would resolve the Attorney General’s claims without the litigation proceeding to trial.
$650,000 Payment Suspended Based on Financial Condition
The proposed agreement also includes a $650,000 payment to the state, although that amount has been suspended based on Metcalf’s reported financial condition.
According to court documents, the payment could become immediately due if information provided concerning his finances is determined to be untruthful.
Metcalf could not be reached for comment by GBH News.
Separate Class Action Addresses Approximately $3 Million in Alleged Debt
The Attorney General settlement comes alongside a separate agreement involving allegations of unfair debt collection practices.
In that class action, Metcalf agreed to void certain debt-related court judgments and dismiss pending cases. Attorneys involved in the litigation said the agreement would forgive approximately $3 million in alleged debt affecting more than 1,300 people, according to court documents.
Alexa Rosenbloom, director of the Consumer Protection Clinic at Harvard Law School, represented the plaintiffs alongside the National Consumer Law Center. She said the outcomes of the two cases would provide meaningful relief for affected consumers while pointing to broader concerns about debt collection litigation in Massachusetts courts.
Proposed Settlement Awaits Court Approval
The Attorney General settlement is not yet final and requires approval from a Suffolk County Superior Court judge.
If approved, it would provide several forms of relief for affected consumers beyond debt cancellation, including the release of certain liens and reversal of some collection-related court actions.
The case also comes amid increased attention to consumer debt litigation in Massachusetts. GBH News has separately reported that consumer debt collection cases in the state’s courts have increased substantially in recent years.
Together with the separate class action settlement, the case could result in debt relief and the reversal of prior collection actions affecting thousands of Massachusetts consumers.
