Forster & Garbus is a major debt collection law firm in the New York City area. Unfortunately, many debt collectors, including Forster & Garbus, violate consumers’ rights as afforded under the Fair Debt Collection Practices Act. Recently, the Consumer Financial Protection Bureau (CFPB) reached a settlement in a lawsuit against Forster & Garbus, LLP for illegal debt collection practices. As long as the settlement is approved, Forster & Garbus would be prohibited from filing any new lawsuit against a consumer unless the firm comes up with specific documents supporting the debt and confirms that an attorney has formally reviewed those documents. Additionally, the order would require the company to dismiss any pending lawsuit where they cannot justify these requirements and to pay a penalty of $100,000, to be deposited into the CFBP’s victims’ relief fund. To learn more about this recent settlement or what it may mean for you, simply read on. Additionally, if you believe your rights as a consumer have been violated in any way, please do not hesitate to speak with a dedicated New York City debt collection defense lawyer from Rahman Legal.
Background On the Case
Essentially, back in 2019, the CFPB sued Forster & Garbus for filing roughly 99,000 debt collection lawsuits on behalf of major lenders, such as Discoer and Citibank, from 2014-2016 without having documentation to support the validity of many of the debts allegedly owed. Pursuing debts without sufficient supporting documentation is a violation of the Fair Debt Collection Practices Act. Further, the CFPB also alleges that the law firm falsely informed consumers that lawyers were meaningfully involved in preparing and filing lawsuits against them, which is also a violation of the Fair Debt Collection Practices Act.
Just some of the most important takeaways from this case are as follows:
- Debt collectors are required to provide consumers with supporting documentation that proves they owe certain debts.
- Debt collectors must never collect debts through deceptive, misleading, or false means.
Finally, and perhaps most importantly, if entered by the court, Forster & Garbus will have to dismiss several lawsuits against consumers due to their fraudulent, deceptive, or misleading nature. Simply put, this means that, fortunately, consumers’ rights are actively being upheld here in New York State, and if you believe you are being unlawfully pursued over debt in some way, you need to speak with a seasoned debt collection defense lawyer as soon as you can. Contact Rahman Legal today to speak with our dedicated New York City debt defense firm.