BOSTON — Online loan servicer Avant will pay $1.6 million in a settlement with the state Attorney General’s Office over allegations that the company used abusive debt collection practices against consumers.
The assurance of discontinuance, recently filed in Suffolk County Superior Court with Avant, LLC, resolves allegations that the company violated the AG’s debt collection regulations by failing to provide consumers proper debt validation notices and making illegal, high volume debt collection calls to consumers.
Avant is an online loan servicer for short term installment loans. The AG’s Office began an investigation into Avant after receiving complaints from consumers.
The $1.6 million payment will go to the Local Consumer Aid Fund to help support, protect, and advocate for consumers across the state on a variety of issues.