In a recent action, the Consumer Financial Protection Bureau ordered a
debt collection law firm and two principal partners to stop filing deceptive
lawsuits based on faulty or nonexistent evidence. Pressler & Pressler
LLP and New Century Financial Services, Inc have been barred from illegal
practices that may deceive or intimidate consumers. These actions include
filing lawsuits based upon invalid claims. The named partners in the law
firm have been ordered to pay $1 million in recovery and New Century has
been ordered to pay $1.5 million to the CFPB’s Civil Penalty Fund.
Pressler & Pressler, LLP is a New Jersey based debt-collection law
firm and is located at 7 Entin Road, Parsippany, New Jersey. The firm
specializes in retail collections and represents debt buyers and other
debt-collection companies such as J.P. Morgan Chase Bank and Midland Funding, LLC.
New Century Financial Services, Inc. is also based in New Jersey. The company
buys and collects defaulted consumer debts including delinquent credit
card accounts, loans, and auto deficiencies. New Century worked hand in
hand with Pressler & Pressler and would send defaulted consumer accounts
to the law firm for collection. Pressler & Pressler would then file
a lawsuit on New Century’s behalf. The firm filed hundreds of thousands
of lawsuits against consumers. Both partners actively participated in
the firm’s debt collection litigation practices.
Pressler & Pressler use an automated claim-preparation system and non-attorney
support staff to mass produce these lawsuits and determine which consumers
to sue. Attorneys spend an insignificant time reviewing each case before
initiating a lawsuit. This process allowed the firm to generate and file
hundreds of thousands of lawsuits against consumers in New Jersey, New
York, and Pennsylvania from 2009 to 2014. Pressler & Pressler and
New Century Financial Services have been found to have violated the Fair
Debt Collection Practices Act and the Dodd Frank Wall Street Reform and
Consumer Protection Act. The violations include (1) making false or empty
allegations about consumer debts; (2) filing lawsuits based on unreliable
or false information; and (3) harassing consumers with unsubstantiated
The CFPB has ordered Pressler & Pressler and New Century Financial
Services to stop filing lawsuits with unsubstantiated claims. Lawsuits
may not be filed by either unless the information showing that the debt
is accurate and enforceable is thoroughly reviewed and deemed to be true.
Additionally, the firm, the named partners, and New Century must ensure
accurate court filings and must pay civil penalties amounting to a total
of $2.5 million.