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Thursday, December 31, 2009

Class Action Lawsuit Alleges "Sewer Service" by Collectors & Process Servers

A New York Times article dated 12-31-09 chronicles the story of a New York family that learned of a judgment against them only after the Marshall's office attempted to enforce the judgment.

In October 2009, a New York consumer rights law firm filed lawsuit alleging violations of the Fair Debt Collections Practices Act in the United States District Court of New York in the Southern District case number 09-CIV-8486 (DC). The complaint was filed against a variety of defendants representing the entire collections chain starting with debt buyers, the law firms they retained and the process serving agency they contracted with.


This case stems from the alleged massive fraud that the NY Attorney General's office is currently investigating. The AG's office filed its own lawsuit earlier this year. The AG's office is attempting to have approximately 100,000 judgments thrown-out because they allege the process serving agency responsible for serving the complaints committed "Sewer Service".


If you want to be blown away by what allegedly took place you need to read the AG's complaint against the process serving agency and approximately 35 collection law firms. In one instance it is alleged that a process traveled over 1000 miles in one day serving complaints all over NY State, many at the exact same time they claimed to have served other defendants.


On December 28, 2009, the complaint filed in the federal court was amended by the plaintiffs making it a Class Action lawsuit. The plaintiff firm claims it could represent over 100,000 victims of judgments won since 2006.


Needless to say this saga continues to cast a negative light upon Debt Buyers, Consumer Collection law firms and Process Servers nationwide. One can only hope that those that are responsible for the alleged fraud in New York are brought to justice.