Greg B. Smith - NY DAILY NEWS STAFF WRITER - July 22, 2009
State Attorney General Andrew Cuomo on Wednesday asked a judge to void 100,000 faulty default judgments overzealous debt collectors used to freeze bank accounts across New York.
The unprecedented move is part of Cuomo’s ongoing investigation into illegal tactics of debt collectors that include repeat phone calls, posing as law enforcement and threatening immigrants with deportation.
In a lawsuit filed in Buffalo, Cuomo sued 35 law firms and two debt collectors to overturn thousands of default judgments, including 24,976 in New York City.
Cuomo is investigating a wave of complaints about companies that intimidate people who’ve already paid their debts or didn’t owe in the first place with harassing phone calls and mailings.
He’s issued subpoenaes to 20 companies seeking documents. Now he’s set to target one of their most powerful weapons - the default judgment.
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State AG Andrew Cuomo asks judge to void 100,000 faulty default judgments