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ILLINOIS
Court Rules in Favor of Weltman in BCFP Case
Cleveland-based Weltman, Weinberg & Reis Co., LPA
(Weltman), announced the firm prevailed in CFPB v. Weltman,
Weinberg & Reis (WWR), the lawsuit brought against it by the
Bureau of Consumer Financial Protection (BCFP). e firm said
Judge Donald C. Nugent, presiding over the case in the U.S. District
Court for the Northern District of Ohio, issued an opinion, finding
on Weltman's behalf, and confirming that the BCFP's lawsuit
lacked merit. e court emphasized its finding "that lawyers were
meaningfully involved disproves the Plaintiff's sole theory of liability
and precludes recovery under the Complaint."
"e Judge's opinion thoroughly vindicates Weltman's processes
and is a complete rejection of the BCFP's unfounded allegations,"
said Scott S. Weltman, Managing Partner at Weltman. "e
Judge stressed that the BCFP 'offered no evidence to show that any
consumer was harmed by Weltman's practice of identifying itself
as a law firm in its demand letters,' that 'Weltman's demand letters
were truthful on their face,' and that 'Weltman attorneys were
meaningfully and substantially involved in the debt collection process
both before and after the issuance of the demand letters.'"
e BCFP sued Weltman in April 2017 following a Civil
Investigative Demand process initiated by the bureau in September
2014. Weltman engaged Jones Day to defend the lawsuit, which
included a four-day trial in May 2018 and maintained that, as a law
firm, it was legally allowed, under federal and state law, to provide
collection and legal services and that the firm was being truthful with
consumers and factually accurate when it used its name and company
letterhead for proper debt-collection activity.
"We are grateful to Jim Wooley, Tracy Stratford, Ryan Doringo,
and the rest of our legal team at Jones Day for their hard work and
tireless advocacy for our position. We are equally thankful for the
outpouring of support from our colleagues in the collection and legal
communities," Weltman said.
