The Consumer Financial Protection Bureau filed a lawsuit in the federal district court in the Eastern District of New York against debt-collection law firm Forster & Garbus LLP.
According to the complaint, the company allegedly misrepresented to its consumers that attorneys were meaningfully involved in its lawsuits when attorneys were not, in fact, truly involved in preparing or filing the lawsuits.
The CFPB said this misrepresentation constitutes a violation of the Fair Debt Collection Practices Act. It is also a violation of the Consumer Financial Protection Act's prohibition against deceptive acts and practices.
In the complaint, the bureau asked for an injunction against Forster & Garbus, damages, redress to consumers, repayment of ill-gotten gains and the imposition of a civil money penalty.