The Consumer Financial Protection Bureau declares victory in its fight against ‘sketchy’ debt collection suits.

The Consumer Financial Protection Bureau has announced the settlement of a lawsuit against a debt collection firm accused of filing frivolous lawsuits against consumers.

In 2019, the bureau sued Forester & Garber, alleging that the firm filed over 99,000 debt collection lawsuits without the necessary documentation.

“Forster & Garbus bombarded its customers with dubious lawsuits on behalf of large lenders such as Discover and Citibank,” CFPB Director Rohit Chopra said.

According to the CFPB complaint, the law firm “falsely represented to consumers that attorneys were meaningfully involved in the preparation and filing of the lawsuits,” in violation of the Fair Debt Collection Practices Act.

Forster & Garbus denied the allegations as set forth in the CFPB’s complaint and stated “the CFPB’s complaint did not allege that any of the lawsuits filed by our firm were filed beyond the statute of limitations or filed in the wrong venue, thus CFPB’s statement that these lawsuits were illegal is simply not accurate.”

If the judge approves the settlement, the agreement would prohibit the firm Forster & Garbus from filing any new lawsuit against a consumer unless it has specific documents supporting the debt and certifies that an attorney reviewed those documents.

Furthermore, the order would require the firm to dismiss any pending lawsuit in which it cannot meet these requirements and pay a $100,000 penalty to the CFPB victim’s relief fund.

Diwan Law, LLC can Help You Explore Your Options.

At Diwan Law, we have knowledge of debt collection defense law, bankruptcy law, real estate law, and other pertinent practice areas.

Explore your rights and legal options with our attorneys – call us at (404) 635-6883 or contact us online to get started with a consultation today.

* The information presented in this article does not constitute legal advice. All information, content, and materials presented on this website are for general informational purposes only. If your business is sued, we encourage you to contact Diwan Law before taking any action.