CFPB Asks Manhattan US Judge to Compel Law Firm's Response in Probe of Debt Collection Firm
The federal consumer watchdog bureau filed a request in Manhattan federal court to have the law offices of Crystal Moroney produce documents the firm claims are privileged.
February 26, 2019 at 04:43 PM
3 minute read
Consumer Financial Protection Bureau building in Washington, D.C. Photo Credit: Diego M. Radzinschi/ALM
The federal Consumer Financial Protection Bureau has filed a suit in Manhattan federal court to compel a law firm's response to its investigation into possible violations of the Consumer Financial Protection Act, the Fair Debt Collection Practices Act, as well as possible Fair Credit Reporting Act concerns.
The bureau has filed a petition in the U.S. District Court for the Southern District of New York for the court to compel the law offices of Crystal Moroney to produce responsive materials that Moroney's counsel has asserted privilege over.
In June 2017, the CFPB notified Moroney's firm of its investigation into its debt collection and consumer information reporting practices. The bureau produced a list of information it demanded the law firm produce.
During an initial conference, Moroney's attorney, Ronald Canter, notified the bureau that the firm had concerns about, among a number of things related to the documents requested, attorney-client privilege and work product privilege.
The bureau, in its filings, notes that it worked with Moroney to address a number of the issues. However, the law firm has remained unwilling to produce a number of items. Its reasoning, according to the CFPB, is based on an “interpretation” of New York and New Jersey professional conduct rules and responsibilities.
The ethics rules argument has kept, among other things, lists of telephone calls and written correspondence with debtors contacted by the firm, information about disputes filed by consumers regarding its credit reporting activities to outside credit reporting agencies, and details about the firm's contracts with creditors.
According to the CFPB, “law is well-settled that administrative agencies are to be given wide latitude in exercising their power to investigate by subpoena,” including for civil investigations.
Moroney's law firm claims on its website that it offers a “fair, but firm” collections process that “ensures that your company's image and our firm's reputation remain in a positive light throughout the process.”
Moroney did not respond to a request for comment on the filing in federal court, nor the underlying investigation. Her prior attorney likewise did not respond to a request for additional information.
The CFPB did not respond to a request for comment.
Related:
National Jewelry Chain Settles Claims Over Surprise Credit Accounts
Circuit Rulings on Civil Investigative Demands Show Agency Deference Is Not Unconditional
Preska Strikes CFPA-Based Claims in Suit Over Litigation Funding, but Says NY AG May Press State Claims
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