Pillsbury Partner Weighs in on CFPB Debt Collections Lawsuit

A new lawsuit filed by the Consumer Financial Protection Bureau has created some buzz surrounding the debt collection industry. The CFPB is suing Georgia law firm Frederick J. Hanna & Associates PC, alleging that the firm is tantamount to a collections lawsuit mill and may use illegal measures to obtain payments from consumers who don’t actually owe debts. Some in the legal industry think the CFPB is reaching outside its authority, while others believe the organization is right to scrutinize collections practices – but almost everyone agrees the suit could have a huge impact on the business of debt collection.

In fact, Pillsbury Litigation partner Christine Scheuneman told the Daily Journal the CFPB’s action could prompt other regulators to more closely examine debt collection firms.

“Once the CFPB makes the point that this is going on, others are likely to take action as well,” she said. “Don’t forget, the CFPB is also working with state attorneys general and other enforcement agencies.”