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CFPB Sues N.Y. Debt Collection Firm for False Representations

May 17, 2019, 3:47 PM

A New York debt collection law firm falsely told thousands of consumers that attorneys had signed off on collection lawsuits when they had not done so, the Consumer Financial Protection Bureau says in a new lawsuit.

Comack, N.Y.-based Forster & Garbus LLP sought to collect on more than 99,000 debts through lawsuits between 2014 and 2016, relying “nonattorney support staff, automation, and both a cursory and deficient review of account files” to file those suits, according to CFPB complaint filed May 16 in the U.S. District Court for the Eastern District of New York.

The CFPB said Forster & Garbus...

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