CFPB Sues NY Debt-Collection Law Firm Alleging Deceptive Practices
The law firm has “relied on non-attorney support staff, automation, and both a cursory and deficient review of account files to attempt to collect more than 99,000 debts," the complaint states.
May 20, 2019 at 10:16 AM
6 minute read
The original version of this story was published on New York Law Journal
The Consumer Financial Protection Bureau has sued debt-collection law firm Forster & Garbus, alleging that since 2014 the firm has attempted to collect more than 99,000 debts without any “meaningful attorney involvement” in the actions.
Instead, the law firm, based in Commack, New York, has “relied on non-attorney support staff, automation, and both a cursory and deficient review of account files to attempt to collect more than 99,000 debts that consumers allegedly owe to Forster & Garbus' clients,” states the complaint, which the CFPB filed on Friday in the U.S. District Court for the Eastern District of New York.
In addition, the law firm has “represented to consumers that its attorneys were meaningfully involved” in a flood of debt-collection lawsuits it has brought in recent years, thereby allegedly misleading consumers and, as a result, violating the Fair Debt Collection Practices Act, according to a CFPB news release about its case.
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