Last week Ditech Financial was ordered to pay the state of Massachusetts $1.4 million to settle charges that the company engaged in “abusive debt collection practices.” The company was allegedly using tactics such as excessive calling and failing to properly notify borrowers of their mortgage information, according to the state’s attorney general.
Ditech Financial, formerly known as Green Tree Servicing, agreed to an “assurance of discontinuance.” This means the debt collection agency will stop making excessive debt collection calls, according to Massachusetts Attorney General Maura Healey.
The order also requires Ditech to provide written notice to borrowers, regarding their right to receive detailed information about any debts the agency sought to collect. According to Healey’s office, Ditech has “routinely violated” state laws since 2012.
Ditech has agreed to change its procedures to prohibit calling borrowers in excess of the number permitted by the debt collection regulations and will implement technological controls to restrict outgoing collection calls when the limit is reached. The payout will be used to address the negative effects of foreclosure, debt collection and other consumer’s protection issues, according to the attorney generals’ office.
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