Debt collection agency and banks accused of deceptive practices in federal lawsuit


Margo Brodie, Chief Judge with the U.S. District Court for the Eastern District of New York | Administrative Office of the United States Courts | Wikipedia Commons

A federal lawsuit accuses a debt collection agency and several financial institutions of using deceptive practices to intimidate consumers.

The lawsuit filed by plaintiff Edward B. Hubbuch names Stuart-Lippman & Associates, Inc., Regions Bank, Ascentium Capital LLC, and Regions Financial Corporation as defendants.  They are accused of violating the Fair Debt Collection Practices Act (FDCPA) and New York General Business Law by using misleading tactics, such as simulated legal authority and false claims of attorney involvement, to obtain payments. Hubbuch alleges that on April 14, Stuart-Lippman sent him a collection notice that falsely implied the company had legal authority over his financial assets. The notice referenced asset investigations and contact with bank officers without legal authorization to take such actions.

The complaint further alleges the use of unauthorized American Bar Association branding to give the impression of serious legal consequences. It also states that Stuart-Lippman ceased these practices following regulatory intervention by Senior Bar Counsel Hunter Perlmutter of the State Bar of Arizona.

Hubbuch alleges that Regions Financial Corporation directed and benefited from the conduct of its subsidiaries, establishing liability under the FDCPA. He seeks actual damages for emotional distress and business interference, statutory damages, punitive damages under federal and New York law, declaratory relief, and litigation costs.

The plaintiff is representing himself in this matter. The case was filed in the United States District Court for the Eastern District of New York under 25-cv-02724-PKC-TAM.

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Debt collection agency and banks accused of deceptive practices in federal lawsuit

A federal lawsuit accuses a debt collection agency and several financial institutions of using deceptive practices to intimidate consumers.