Pro Bono: Analysis of Debt Collection Practices in Massachusetts Small-Claims Actions

Attorneys from the National Consumer Law Center and Harvard Law School’s Consumer Protection Clinic engaged Brattle to support class certification in a case against a Massachusetts small-claims debt-collection agency. The plaintiffs alleged that the defendant filed high-volume debt actions without proper proof of ownership and improperly categorized interest as principal in violation of Massachusetts consumer protection laws. Brattle was retained to evaluate the defendant’s methodology for calculating principal, interest, and related amounts, and to assess the impact of those practices.

Brattle’s analysis found that the defendant’s labeled “principal” included undisclosed interest, while its labeled “Interest” included pre-judgment interest calculated from the charge-off date – resulting in judgments that effectively imposed interest on interest. The court certified the class and subclass and granted summary judgment to the plaintiffs, finding the practices unfair and deceptive, and establishing important precedent regarding disclosure and proof-of-ownership requirements in Massachusetts debt-collection actions.