The Consumer Financial Protection Bureau (CFPB) is blaming a Georgia-based debt-collecting firm for operating a large scale and unauthorized suit mill that lasted several years. The mill produced hundreds of thousands of collection complaints against consumers, a majority of whom may not owe any debt or owing lesser amounts than actually claimed.
The complained filed by the agency in an Atlanta U.S. District Court recently allege Frederick J. Hanna & Associates, P.C., implemented immense litigation tactics to collect false debts on behalf of debt buyers and card issuers.
The CFPB is an independently run federal firm that monitors credit unions, banks, and other financing firms and deploying federal financial policies.
Such allegations have called to mind “automated” signings made against law firms that have handled a large number of foreclosures since the housing bust years ago.
As much as 350,000 lawsuits were shot down when challenged in court. The complaint said that consumers who kept lawyers were several times likely to have their cases dismissed.
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