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Georgia based law firm pursued by the CFPB

Thursday, July 17, 2014 - Posted by Philip Harvey

Frederick J.Hanna & Associates (a Georgia based law firm) is being pursued by the Consumer Protection Bureau (CFPB) for operating an automated system of high-volume litigation in the pursuit of outstanding debt.

Looking at the volume and scale of the debt collection litigation in question, some statistics that come out for claim against the law firms debt collection practices were;

  • 350,000 cases were commenced against consumers over 5 years.
  • The firm employed between 8 to 16 lawyers during this period.
  • In 2009 and 2010, one lawyer signed 85% of the claims, a staggering 1,300 claims a week.
  • The lawyers responsible for signing off on the claims were given approximately 1 minute to review each claim.
  • When matters were defended, the firm discontinued proceedings.
  • In 2009, some 40,000 cases were discontinued when defences were filed, at a rate of 155 a week.
  • Many of the cases were commenced on behalf of debt purchasers who had no paperwork to support the claim for the amount outstanding.

The case against the law firm alleges that the Fair Debt Collection Practices Act and the Consumer Financial Protection Act were breached.

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