December 15, 2017

Georgia Collection Law Firm Facing Lawsuit from Governors’ Office of Consumer Affairs

Today’s AJC reports that Marietta collection law firm Frederick Hanna & Associates has been sued by the Governors’ Office of Consumer Affairs following multiple complaints about collection tactics used by the firm.   In November, the state consumer office served an investigative demand notice (i.e. a subpoena) on Mr. Hanna’s law firm asking for documents about the firm’s collection practices.   Hanna contends that because his office is a law firm the state agency has no right to this information.

Among the complaints leveled against Hanna along with other high volume collection firms (Hanna opens 50,000 new files a month!) is that they engage in collection of s0-called “zombie debt,” accounts purchased by collectors for pennies on the dollar because it is old – so old that the statute of limitations has run and the debt buyer has no legal right to sue. [Read more…]

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