WASHINGTON (Legal Newsline) – In a recent proposed consent order filed in federal court, the Consumer Financial Protection Bureau looks to resolve a lawsuit against Frederick J. Hanna & Associates over an alleged illegal debt collection lawsuit mill.
An original CFPB lawsuit alleged that the Georgia-based law firm and its three principal partners relied on deceptive court filings and faulty evidence to make dozens of lawsuits. The new order would bar the firm from its alleged illegal practices and require it pay $3.1 million to the Bureau’s Civil Penalty Fund.
“The Hanna firm relied on deception and faulty evidence to coerce consumers into paying debts that often could not be verified or may not be owed,” CFPB Director Richard Cordray said. “Debt collectors that use the court system for purposes of intimidation should reconsider how their practices are harming consumers.”
The Hanna law firm deals entirely in debt collection litigation, performing activities on behalf of banks, credit card issuers and companies that purchase and sell consumer debt.
The CFPB looks to put a stop to the firm’s alleged illegal activities as part of a larger goal to reduce illegal debt collection practices across the consumer financial marketplace.
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