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CFPB Sues Debt Collection Law Firms
On Monday, January 30, 2017, the CFPB announced its lawsuit against a variety of debt collection law firms including Howard Law, P.C., the Williamson Law Firm, LLC, and Williamson & Howard, LLP, as well as attorneys Vincent Howard and Lawrence Williamson. The individuals ran their firms along with Morgan Drexen, Inc., which the CFPB sued in 2015 and subsequently went out of business. In the complaint, the CFPB alleges the firms violated the Telemarketing Sales Rule by wrongfully collecting fees and improperly disclosing the fees to consumers. The CFPB is requesting the court grant injunctive relief, restitution to consumers, and civil money penalties.
“The defendants exploited consumers who were already suffering financial difficulties by tricking them into paying steep, illegal fees,” said CFPB Director Richard Cordray. “We put a stop to this scam once already, and we intend to do it again.”