Hamilton Law Group has agreed to pay a fine and adjust its collection practices after the Pennsylvania Attorney General's Office sued the law firm and its president over its collection activities.
The attorney general filed suit against Hamilton Law Group and its president, James Havassy, in May 2015, alleging the firm used the state's Filial Responsibility Law to improperly coerce payments from debtors' relatives, according to The Morning Call.
Under the Filial Responsibility Law, a court order is required before trying to collect from a debtor's relative. The Pennsylvania Attorney General claimed Hamilton Law Group violated the Unfair Trade Practices and Consumer Protection Law by using the Filial Responsibility Law as an ordinary method of medical debt collection when a court order had not been issued. For instance, the attorney general alleged the firm pursued one man for his father's cardiology bill without a court order indicating the son was responsible for the debt.
Under the settlement, Hamilton Law Group and Mr. Havassy are required to pay a $3,000 fine, $366 in restitution, $3,000 in investigative costs and $65 in court costs. The firm also agreed to remove any negative reports with national credit bureaus that were filed due to the use of the allegedly improper collection practices and to stop all collection efforts based solely on the Filial Responsibility Law, according to the report.
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