Friday, April 29, 2016

NJ Law Firm Fined for Abusive Debt Collection Practices

The law firm of Pressler & Pressler of Parisppany, New Jersey has been fined $1 million for filing debt collection lawsuits without thoroughly investigating the evidence.  Many of the cases were based on flimsy or non-existent evidence.

The debt collection lawsuits were filed by the law firm on behalf of New Century Financial Services, which also has been fined and ordered to pay $1.5 million to the U.S. Consumer Financial Protection Bureau’s Civil Penalty Fund.

Between 2009 and 2014, the law firm is accused of using non-attorney support staff and computer programs to determine which customers to sue.  Attorneys generally spent less than 30 seconds reviewing each case.  Many of the lawsuits did not have the necessary documentation to support the claims, which is a violation of the Fair Debt Collection Practices Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act.

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