Georgia law firm accused of running more like 'a factory' agrees to $3.1M settlement
A Georgia law firm has agreed to pay $3.1 million to resolve allegations that it “operates less like a law firm than a factory” in its collection of consumer debt.
Frederick J. Hanna & Associates resolved the suit by the Consumer Financial Protection Bureau without admitting wrongdoing, report the Daily Report (sub. req.) and the Wall Street Journal Law Blog.
The proposed agreement would bar the firm from illegal debt-collection practices, according to a press release. Barred practices would include filing suits without being able to verify the debt is owed, and intimidating consumers with deceptive court filings.
The deal is subject to court approval.
A statement issued by Frederick J. Hanna & Associate said it already follows many of the requirements outlined in the settlement agreement. The firm said it agreed to settle to “halt the relentless expense and uncertainty of protracted litigation.”
“We did not institute any pattern or practice with the intent to deceive or harm consumers,” the statement said, “and there has been a robust and substantial compliance management system with redundant levels of due diligence in place … for many years.”
