The Consumer Financial Protection Bureau sues law firm Frederick J. Hanna & Associates

The Consumer Financial Protection Bureau on Monday sued law firm Frederick J. Hanna & Associates and its three principal partners alleging they run a debt collection lawsuit mill that uses illegal tactics to intimidate consumers into paying debts they may not owe.

CFPB alleges the Marietta, Ga.-based firm “churns out hundreds of thousands of lawsuits that frequently rely on deceptive court filings and faulty or unsubstantiated evidence.”

Named in the suit as defendants are Frederick J. Hanna, Joseph C. Cooling, and Robert Winter, whom CFPB says “play an active role in the company’s business strategies and practices.”

The CFPB alleges the firm produces hundreds of thousands of debt collection lawsuits against consumers on behalf of its clients, which mainly include banks, debt buyers, and major credit card issuers. Between 2009 and 2013, the firm filed more than 350,000 debt collection lawsuits in Georgia. The CFPB further alleges the defendants collected millions of dollars each year through these lawsuits, often from consumers who may not actually have owed the debts.

The suit also claims the firm engages in “intimidating consumers with deceptive court filings” and “introducing faulty or unsubstantiated evidence.”

The CFPB suit asks for compensation for victims, a civil fine and an injunction against the company and its partners.

Why not F?  Frederick J. Hanna: Rated D- By The Better Business Bureau