By Karen Oakes, Southern Oregon Consumer Attorney on Jul 31, 2009 in Consumer Protection, Levy and Garnishment - creditlawnetwork.com
This week, the New York Times reported that consumers who had been the victim of fraud by unscrupulous debt collectors may be getting money back if the New York attorney general is successful in the lawsuit filed against two collection agencies and 35 attorneys. According to the article, the debt collectors had sued the consumers and never served the consumers the lawsuit(s).
The debt collectors then presented paperwork to the court proving that the consumer had been served and was ignoring the lawsuit….which results in a default judgment in favor of the debt collector. That default judgment then allows the debt collector to make attempts to seize assets of the consumer, usually placing a judgment lien against real property or by taking wages (garnishment).
The New York attorney general, Andrew Cuomo, is the force behind the lawsuit which seeks relief for 101,000 New York consumers. The debt collection agencies and attorneys may have committed perjury and the responsible parties may be facing criminal charges. The lawsuit alleges that the default judgments were obtained through the use of false affidavits (the affidavits were sworn statements that the consumers had been given notice of the debt collection lawsuit).
Read the rest of the story:
You Never Got Notice Of Being Sued? The Judge Just May Believe You Now!!