NJ Debt Buyer and Their Lawyers Fined Millions for Suing Over Debts with No Evidence
Sept. 14, 2016
Courts are access to justice. When someone wrongs you and refuses to do anything about it, you can take them to court to get help. A neutral judge should weigh the evidence and render a verdict. Like when someone owes you money and refuses to pay you, you can take them to court.
What happens if there is no evidence? Someone drags you to court on a whim? Theoretically, there are consequences. What if a company does that as a business model? Well, that is when the system can break down.
Turns out that the law firm Pressler & Pressler, LLP, and a company called New Century Financial Services, Inc., a debt buyer, was doing exactly that- filing thousands of lawsuits against consumers saying they owed money - when they had no evidence. Now, the Consumer Financial Protection Bureau (CFPB) Ordered them to stop. Not only do they have to stop - The firm and the named partners must pay a penalty of $1 million to the CFPB’s Civil Penalty Fund, and New Century must pay a penalty of $1.5 million.
“Debt collectors that file lawsuits with no regard for their validity break the law and violate the public trust. We will continue to take action to protect borrowers from abuse," said CFPB Director Richard Cordray. “For years, Pressler & Pressler churned out one lawsuit after another to collect debts for New Century that were not verified and might not exist.”
read more at www.consumerfinance.gov