A Chicago debt collection law firm has been sued by HSBC for more than $400,000 in missing funds that were collected by the firm for the bank.
HSBC fired Friedman & Wexler LLC in January after it discovered the firm had insufficient funds in its bank account to cover more than $231,000 that was due to the bank. The bank also found four unpaid electronic transfers totaling more than $171,000. HSBC identified more than $24,000 in phony expenses that the firm billed to the bank. The overcharges include court filing fees related to complaints that the law firm never filed.
HSBC hired the firm in 2005 to help collect outstanding consumer loans. The bank paid the firm 25% of the amount collected.
HSBC claims that this is not the first time the law firm failed to account for and remit funds to its clients. At least three former clients have sued the firm for failing to make necessary payments according to the bank’s lawsuit.
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