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CFPB Sues Law Firm for Deception in Debt Collection Case

Thu 20 Apr, 2017  /  by McIntyre & Lemon  /   Client Alerts

04/20/17 – The Consumer Financial Protection Bureau (CFPB) filed a lawsuit in a federal district court against a debt collection law firm for allegedly falsely stating in collection letters that attorneys were involved in the debt collection.

The Ohio-based firm regularly collects debt related to credit cards, installment loan contracts, mortgage loans, and student loans. It collects on debts nationwide but only files collection lawsuits in seven states: Illinois, Indiana, Kentucky, Michigan, New Jersey, Ohio, and Pennsylvania.

The CFPB alleges that the firm is violating the Fair Debt Collection Practices Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act. According to the CFPB, since at least July 21, 2011, the law firm has sent millions of demand letters to consumers. The law firm made statements on collection calls and sent collection letters creating the false impression that attorneys had meaningfully reviewed the consumer’s file, when no such review has occurred. No attorney had made any individual determination that the consumer owed the debt, that a specific letter should be sent to the consumer, that a consumer should receive a call, or that the account was a candidate for litigation.

The CFPB is seeking to stop the respondent’s unlawful practices and recoup compensation for consumers who have been harmed.

CFPB Press Release, Complaint.