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Smith Welch Webb & White Blog

Tuesday, January 26, 2016

Firm Violating Fair Debt Collection Practices Paying $3.1 Million Penalty

A consent order recently filed in federal court ended a Consumer Financial Protection Bureau (CFPB) suit filed against the Cobb County-based law firm Frederick J. Hanna & Associates regarding its illegal debt collection practices. The firm agreed to pay the $3.1 million penalty without admitting or denying the wrongful conduct.

 

The Hannah law firm specializes in the area of debt collection litigation, performing debt collection on behalf of its clients including banks, credit card issuers and companies that purchase and sell consumer debt.  According to the lawsuit, the firm sued more than 350,000 Georgia residents within a five-year period on debts that often were exaggerated or invalid, such as debts already paid. 

 

According to CBS 46, The State Bar of Georgia began investigating one of the partners in April 2014 for possible violations of the Bar's professional rules of conduct, including truthfulness in statements and misconduct.  Three months later, the CFPB filed suit against the firm and its three principal partners in federal court.  The CFPB charged the law firm with violating the Dodd-Frank Wall Street Reform and Consumer Protection Act’s prohibition on deceptive practices as well as the Fair Debt Collection Practices.

 

The consumer law attorneys at Smith, Welch, Webb and White celebrate the efforts of the CFPB and the Georgia Bar to end illegal collection and intimidation tactics.   Consumer protection laws exist to protect buyers from many forms of fraud and unfair business practices, including mortgage fraud, fair debt collection and other mistreatment.  If you need an experienced consumer advocate, contact our consumer law attorneys today. 

 

 


 Any representations regarding the law in this Blog is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and the Blog publisher. The Blog should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Sources: The Lawyer Herald, ConsumerFinanace.gov, CBS46

 



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