Basic errors are at the heart of a lawsuit that the three-year-old Consumer Financial Protection Bureau is bringing against Frederick J. Hanna & Associates P.C., Bloomberg News reported today. The bureau’s suit, filed on July 14, alleges that Hanna churns out hundreds of lawsuits each day — many against consumers who don’t owe money or owe a different amount. Hanna’s lawyers violated the law by filing suits throughout Georgia without verifying facts, the bureau alleges, relying instead on an automated system and hundreds of non-lawyer staff. The firm also submitted affidavits signed by individuals who said that they had “personal knowledge” of the amount and ownership of the debts, even when they didn’t, according to the CFPB complaint in federal court in Atlanta. Hanna disputes the allegations. Hanna’s methods, as the bureau describes them, represent the latest twist on robo-signing, the speed-processing behind many subprime loans and subsequent mass foreclosures. The bureau believes there are other firms that engage in similar, allegedly illegal practices and it will monitor them and take future action as necessary, said a CFPB spokeswoman, Moira Vahey.
