Consumer watchdog sues law firm that filed 99,000 debt-collection suits

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The Consumer Financial Protection Bureau's complaint against a New York debt-collection law firm alleges that its attorneys signed off on tens of thousands of lawsuits against consumers without checking into whether the debt, or the amount owed, was accurate.

The New York law firm of Forster & Garbus is accused of violating federal law by falsely representing to consumers that its attorneys were meaningfully involved in preparing legal action against them.

The complaint accuses the firm of violating the bureau's prohibition against deceptive acts and practices due to that lack of attorney involvement. The complaint, filed by the Consumer Financial Protection Bureau in U.S. District Court, alleges that Forster & Garbus, of Commack, New York, violated federal law by falsely representing to consumers that its attorneys were meaningfully involved in preparing the collection lawsuits against them — more than 99,000 were filed by the firm between 2014 and 2016.

 

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