Debt Collection Litigation in the Cross Hairs: CFPB’s Consent Order Against New Jersey Law Firm Creates More Problems Than Solutions

This article originally appeared as an Alert on ClarkHill.com, and is republished here with permission.

Joann Needleman

Lightning can strike twice. With the ink barely dry on the Consent Order against the Hanna Law Firm (Hanna) in Georgia, the Consumer Financial Protection Bureau (CFPB or Bureau) yesterday took action against another debt collection law firm for the filing of debt collection complaints that the CFPB alleges were unsubstantiated by a lack of documentation and improper affidavits by the law firm’s clients, all in violation of the Fair Debt Collection Practices Act (FDCPA) as well as the Consumer Financial Protection Act (CFPA). This time the target was Pressler & Pressler, its two named principals (collectively “Pressler”), as well as a debt buying entity, New Century Financial Services (New Century). The Pressler firm and New Century each entered into separate Consent Orders without admitting or denying any of the findings or conclusions of law asserted by the Bureau. Similarly, there was no adjudication of any of the CFPB’s claims.