Listen to this articleFounded in 2006, Lemberg Law is a consumer law firm that’s helped more than 18,000 clients recover more than $35 million. Lemberg Law leverages consumer laws that prohibit big companies from harassing and railroading regular folks in order to get clients the justice they deserve. The firm has six staff attorneys and four of-counsel attorneys, and brings cases in federal courts in 28 states and the District of Columbia. Below is our interview with Sergei Lemberg, Managing Partner at Lemberg Law LLC:
Q: Can you give us some insights into the CFPB and the industries it regulates?
A: The Consumer Financial Protection Bureau was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was enacted in 2010, about two years after the start of the Great Recession. The CFPB is a federal agency that opened its doors in 2011, and that has as its mission ensuring that financial products work for consumers – instead of against them. The agency does this by educating consumers, regulating industries, and – typically in conjunction with other agencies like the Federal Trade Commission – enforcing those regulations.
As the CFPB ramped up operations, it took on responsibility for a variety of functions and industry oversight. It took over complaint tracking from the FTC in 2011, and launched the Consumer Complaint Database in 2012. Early on, the Bureau accepted complaints about credit cards, and that was followed by mortgage complaints. In the spring of 2012, the CFPB accepted complaints about bank products and services, and a little over a year later, tackled debt collection agency complaints.
But the CFPB does much more than field consumer complaints. It also develops and enforces rules and regulations. The CFPB has enacted rules protecting consumers from shady practices relating to debt collection, electronic fund transfers, mortgage lending, banks that lack federal deposit insurance, fair credit reporting, truth in lending, and more. The agency’s latest proposed rule regulates payday and vehicle title lenders by, for example, requiring them to ensure that the consumer has the ability to repay the loan. The rule also prohibits payday lenders from trying to withdraw repayment from an overdrawn account after two failed attempts, since the practice saddles consumers with an avalanche of bank fees.
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Q: What are the main consumer issues you’re dealing with?
A: We help consumers assert their rights for a variety of consumer issues. For example, debt collectors often hound folks – whether or not they owe the debt in question. The federal Fair Debt Collection Practices Act prohibits debt collectors from engaging in certain behaviors, such as calling excessively or telling a third party about the debt. Nevertheless, collection agencies are notorious for violating the FDCPA. Under the law, consumers can sue in federal court. If the agency is found to have violated the law, the consumer can be awarded up to $1,000, plus court costs and attorney fees.
This legal fee-shifting provision is important, because it levels the playing field. For example, we help consumers who have defective vehicles make lemon law claims against auto manufacturers. Consumers who prevail in lemon law suits may get a replacement vehicle, a buyback, or a cash settlement, and the manufacturer is on the hook for court costs and attorney fees.
In addition to FDCPA and lemon law cases, our firm handles violations of the Telephone Consumer Protection Act, an example of which is cell phone robocalls, and violations of the Fair Credit Reporting Act, such as the misuse of a person’s credit report or misreporting damaging information.
We also practice in other areas of the law, such as wage and overtime law and personal injury law.
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Q: Who are the primary clients of Lemberg Law?
A: The best way to characterize Lemberg Law clients is to say that they’re regular folks. They have jobs and families, and are busy living their lives when, all of a sudden, a company steps over the line. They often don’t know where to turn or what to do, which is why it’s particularly satisfying to let them know that the law protects them and that we can help them get justice.
Q: Tell us something about your college scholarship program?
A: We’ve offered a variety of undergraduate scholarships over the years. Our active scholarship opportunities focus on benefitting students who are immigrants to the U.S. I emigrated to the U.S. from the former Soviet Union when I was 15, and was able to take advantage of the wonderful educational opportunities this country provided. I graduated from college and from law school, got married, and had a family. I’m living proof that the American Dream is possible for immigrants.
I’m a believer in paying it forward, which is why we’re offering the Lemberg Law “American Dream” $1,250 Undergraduate Scholarship and the Lemberg Law “Land of Opportunity” $1,250 Law School Scholarship.
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