An ambulance company has agreed to pay a $50,000 fine and cancel $1.6 million in unpaid debts after reaching a settlement with the Attorney General of Massachusetts to resolve allegations that a deceased collection attorney illegally threatened consumers with arrest and imprisonment.
The ambulance company, Trinity EMS, along with the collection agency it used, Stevens Business Services, have also agreed to forgive and stop collecting any debt alleged to be owed based on previously obtained judgments, disclaim the right to sell or transfer the debts to another debt collector, inform affected consumers they no longer have to pay outstanding debts, and report these debts as satisfied to credit reporting agencies.
The attorney, Robert White, was hired by SBS, was accused of taking advantage of “vulnerable, low-income” consumers “with major medical issues,” who “spoke English as a second language,” according to the Attorney General’s office. Both the ambulance company and the collection agency acknowledged they were aware of what the attorney was doing, but “continued to benefit from his services for years.”
White, who had practiced law for more than 45 years, was previously sued by the Attorney General of Massachusetts in 2017 for making “baseless threats” when attempting to collect debts. He passed away before his case reached a final judgment.
“Debt collectors and their attorneys aren’t allowed to threaten you with jail time if you can’t pay a bill,” said Maura Healey, the Attorney General of Massachusetts, in a statement. “For years, this company knew that vulnerable consumers in the Lowell community were being taken advantage of and they should have put an end to it. This settlement will provide relief to those who were harmed by these illegal practices.”
About 900 individuals are affected by this settlement.
“Although we vehemently deny any knowledge and responsibility regarding the attorney’s actions, Trinity stepped up and agreed to resolve these matters by voluntarily canceling those debts incurred by consumers,” Trinity EMS said in an emailed statement, according to a published report
