Consumer Debt Litigation Defense

In 2006 alone, debt buyers and creditors filed almost $1 billion worth of lawsuits against New Yorkers and obtained judgments for almost $800 million, a staggering success rate.

To a limited extent, consumer credit litigation is disproportionately concentrated in low-income neighborhoods in Brooklyn and the Bronx. On the whole, however, consumer credit litigation affects residents of all of New York's neighborhoods and city council districts.

The vast majority of litigation is brought by debt buyers. In addition, the majority of litigation is based on alleged accounts with a small number of original creditors, many of whom are common issuers of sub-prime credit cards.

Defendants rarely appear to defend themselves in consumer credit litigation, suggesting that many defendants are not properly notified that there is a lawsuit against them.

80.0% of cases result in default judgments. These are judgments based on the defendant's failure to appear to defend himself, not based on the merits of the plaintiff's case.

In 99.0% of the cases where default judgments were entered, the materials underlying those applications constituted inadmissible hearsay and did not meet the standard set forth in section 3215(f) of the Civil Practice Law and Rules for the entry of a default judgment. Nevertheless, these applications were approved; the default judgments were entered; and New York consumers suffered the consequences.

If you or a loved one are facing a lawsuit from a 3rd Party Debt Collection agency, don't roll over and play dead. The Plaintiff has a burden to prove a case. If they fail to do so, the case will be dismissed.

If you are facing harassing letters from debt collectors or are named in a lawsuit for an old debt or a debt that is not yours, contact the office for a free consultation.