Friday, January 1, 2010

Lawsuit filed against fradulent debt collectors

From the NY Times:

...thousands of New Yorkers...according to a class-action lawsuit, are victims of a network of debt collectors who used fraudulent documents to surreptitiously win court judgments — all without the debtors’ knowledge.

The lawsuit, filed in Federal District Court in Manhattan this week, takes aim at a decades-old practice known in legal circles as “sewer service.” This is when a debt collector fails to serve a notice of complaint and then files a false affidavit claiming the notice has been properly served. When the debtor doesn’t show up in court, the collector can then apply for, and almost always wins, a default judgment.

The first a victim often learns about the judgment is when a bank account is seized or a lien is threatened. The judgments can also ruin a person’s credit report.

Consumer advocates say the practice has grown in recent years, fueled by the recessionary rise in consumer debt actions and the emergence over the last decade of companies that buy up charged-off debt for pennies on the dollar, then seek to recover the full debt, along with interest, for themselves.


Anonymous said...

Interesting read, especially in light of the most recent Ackerman article that was posted earlier. Those Zises brothers really get around. I wonder what their buddy Rep. Ackerman thinks about Unifund CCR and their vicious and aggressive tactics against consumers who are struggling with credit card debt. Ackerman's got to go!!! He claims to be helping consumers but I wouldn't be surprised if he is profiting from this Zises company as well. What a frigging hypocrite.

Anonymous said...

We need to hang these bums in a public place like they did in the old days. Then they would think twice about ripping off the public.

A. Nuther Shill said...

Don't forget to buy the latest DVD..."Government Gone Wild IV" starring Ackerman & his crooked cronies. In this edition, the Zises Brothers teach Gary how to fleece and run. Enjoy the magic as your bank account disappears. Where did it go? Buy the DVD and learn the secrets of that trick and many many more! Here's how to order:


Tell 'em Gary sent ya.

Anonymous said...

These sob's can torment you for years too. I've had a friend who had her money taken to pay the debts of someone with a different SS#, DOB and Address, she had to sue to get her paychecks back.

And they can be very persistent too:

Anonymous said...

I find the Ackerman connection very disturbing.

Anonymous said...

There oughta be a law! Oh wait! Isn't this where our hero Ackerman comes in and says "I'll save the day!" HA HA HA HA HA HA HA HA HA HA

Anonymous said...

No one seems to mention "RESPONSIBILITY". Every time someone wants to buy themselves a 50" flat screen and not pay their bill it is we the people who pay our bills who get screwed! Stop buying what you can’t afford, and figure out a way to earn money. Some one has to teach people responsibility for their behavior. Or are you a liberal; and maybe gov't should buy you a big TV, hey you know the rich folk have them, and guess what, every lazy person should get one too, for free on me and you! Hey pass me another another stimulus check and sue the creditors asking for "their" money back. Bob