A continuation of the first legal guide on what is illegal debt settlement and debt collection in NY. This follows the New York Attorney General's summary of what is proper and improper in debt collection, legal process, recent state legal action on consumer suits, how to file a consumer complaint
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Proper Procedure in New York when Collecting a Debt
According to the New York Attorney General , the following is legitimate when a creditor is collecting a debt:
Creditors may contact you directly about a debt you owe them. For example, your credit card company may call you to remind you that you have not been making the minimum payments necessary to keep your account from defaulting. Generally, federal consumer protection laws regarding fair debt collection do not apply in these situations, but the creditors are still required to comply with New York State law governing debt collection.
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What is Improper and Illegal Procedure in New York when collecting a Debt
The following however violates the New York State Debt Collection Procedures Law which does not allow creditors (and their agents) to do the following:
• communicating the nature of your debt to your employer prior to obtaining a judgment against you;
• threatening to take an action that it can not or would not normally undertake;
• threatening to collect a fee over and above the debt that you owe;
• communicating with you in a manner which simulates a judicial process or which gives the appearance of being authorized or issued by a governmental entity; and
˙· contacting you or a family member with such frequency or at such unusual hours
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Arresting the Bad Guys and Filing State Suits
NY has become enraged at the mistreatment of its consumers in these debt settlement and collection acts. In 2009 the Attorney General has arrested violators and sued others, including law firms who have knowingly violated the law: The following are the press releases on the most recent cases in 2009:
The Attorney General’s has released to the public these most recent enforcement actions:(review them to see if any of these agencies were harassing you or defrauding you):
On April 14, 2009 the New York Attorney General announced criminal charges against Long Island-based American Legal Process (“ALP”) and its CEO and President William Singler for a fraudulent business scheme. This company allegedly failed to provide proper legal notification to thousands of New Yorkers who were facing debt-related lawsuits, causing them unknowingly to default and to have costly judgments entered against them without the chance to respond or defend themselves.
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Attorneys are not immune!
In addition, Cuomo announced his intent to sue one of ALP’s largest customers, the law firm of Foster & Garbus, for violations of New York State’s consumer protection laws. According to Cuomo, Forster & Garbus used ALP to serve over 28,000 summons and complaints across the state, but failed to supervise the company and relied on legal papers from ALP that it knew or should have known were false. If this law firm was the one which sued you for an unpaid debt, let the attorney general's office know. You will find the contact information for the AG office on the list of web sites on legal guide Part I
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What a Process Server must do in New York
The A G has informed the public of what are the specific rules which must be followed by process servers: Know about Process Servers: Know Your Rights! If a creditor decides to bring a lawsuit against you to try to collect a debt, it will typically hire a law firm to bring the lawsuit. Legal process servers are hired by law firms to serve legal papers which notify individuals that they are being sued. This is NOT a judgment and this CANNOT begin an attachment on your assets. It is information you are being sued. Period. New York law makes clear how the legal documents that start a lawsuit must be served on anyone being sued. This process must be followed to be a legally valid lawsuit.
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