The CFPB Orders A Law Firm and A Debt Buyer To Discontinue Illegal Processes
According to an article published by Time, the federal Consumer Financial Protection Bureau ordered two different firms to discontinue an illegal collection process that utilized an automated lawsuit generator. The CFPB stated that New Century Financial Services, Inc. and Pressler & Pressler, LLP have been filing lawsuits against people while using nonexistent or insubstantial evidence to back their claims.
According to the Director of CFPB, Pressler & Pressler, LLP has been filing lawsuits in order to collect nonexistent or unverified debts on behalf of New Century Financial Services, Inc. He continued, stating that these types of debt collectors and firms, those who file lawsuits without ensuring their claims are valid, practice illegal behaviors and violate the trust of consumers. The director claims that CFPB will continue to take action in order to protect borrowers from these abusive tactics.
Sources state that these lawsuits, which have been produced by the masses, were generate using an automated system that was not monitored or supervised by an attorney. Instead, sources found that an untrained team monitored such practices and spend less than 30 seconds evaluating and verifying each claim.
The CFPB stated that this practice, with the use of the automated machine, violated the Dodd-Frank Act on the following accounts:
- Generating empty or false allegations about consumer debts
- Filing lawsuits with illegitimate information
- Harassment using unsubstantiated court filings
Our Team at Atlas Consumer Law Stands By the Sides of Consumers
At Atlas Consumer Law, our team of Chicago consumer lawyers are dedicated to standing by the sides of those treated unjustly by debt collecting companies and other entities. Because we understand consumer laws intricately, our team can fight for your rights at any point. If you believe you have become the victim of creditor harassment, we encourage you to get in touch with a Chicago consumer attorney at Atlas Consumer Law right away! When you entrust our team with your case, we will examine every detail of your case and pursue justice for you in as little time as possible.
To speak with a Chicago consumer lawyer today, call us now. We are dedicated to using innovative legal strategies in every case!