The Consumer Financial Protection Bureau (CFPB) late last week filed a response in an FDCPA enforcement action that marked a bit of a shift in tone. The CFPB took direct aim at the defendant’s claims, going so far as to bluntly call some of their reasoning “simply wrong.”
The CFPB was responding to a motion to dismiss the case from Frederick J. Hanna and Associates. In July, the CFPB filed a lawsuit accusing the law firm and its three principal partners of operating “like a factory,” producing hundreds of thousands of debt collection lawsuits against consumers on behalf of its clients, mainly major credit card-issuing banks and debt buyers.
Hanna filed its motion to dismiss last month. In that motion, the firm said that the Bureau did not have the authority to regulate the practice of law. Because the CFPB’s allegations exclusively involve the firm’s actions in filing lawsuits and supporting the suits with affidavits, the CFPB does not have the proper standing to regulate the actions, Hanna asserts.
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