NY Court of Appeals Approves Debt Collection Class Action Suit

Posted by | April 13, 2015 | Bighorn Has Your Back | No Comments
NY Court of Appeals Approves Debt Collection Class Action Suit

A few weeks ago, the 2nd US Circuit Court of Appeals in New York allowed a class action suit against fraudulent debt collectors to proceed. This suit is based on complaints of thousands of victims who were subject to almost 50,000 default judgements in New York over the last few years. The plaintiffs are alleging that these default judgements were fraudulent and are asking for damages from the debt company that is responsible. This is big news for people across the country and in Las Vegas who are suffering from the abusive practices of debt collection companies.

What are Default Judgements?

If one of your debts has been bought by a debt collector, you will likely be sued for the amount of the debt owed. At that point, you will be notified and required to respond. If you fail to respond or attend a hearing regarding the debt, the court may issue a default judgement against you. You will then be required to pay the debt to the debt collector, and the debt collection company may attempt to garnish your wages in order to do that.

In the class action case in New York, the victims are alleging that the default judgements were acquired fraudulently. According to them, they were never notified that the debt was being pursued in court, and never had a chance to contest the debt before getting the default judgement issued. If the class action suit can prove that the debt company did not notify them, but told the courts that it did, then the plaintiffs could be entitled to damages. Some of those damages include garnished wages, fees from freezing personal bank accounts, and legal costs due to the default judgements.

Are You Being Contacted by a Debt Collector?

If you are being contacted by a debt collector in Las Vegas, then the outcome of this case could be very important for you. Many are already saying that this case will act as a blueprint for similar cases in other states, and that includes Nevada.

Remember—a debt collector must immediately contact you and give you a chance to contest the debt and the debt amount in front of a judge. If you are not contacted until a default judgement has been issued, that means that the debt collector has engaged in fraudulent and abusive practices. In this case, you should get in contact with a lawyer who can help you file a suit for damages.
If you have other possible examples of abusive practices by a debt collection agency, you should also speak with a lawyer and see what your options are. It appears that class action suits may be an effective way to defend yourself against debt collection agencies. If you are being victimized by debt collectors, there’s a good chance that there are thousands just like you in Las Vegas and Nevada who have suffered the same abuse. Contact our attorneys today, and we will help you determine if you have a case.

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