Consumer Law

Class Action Brought in Debt Collection Sewer Service Scandal

By Jeff Sovern

Last summer we blogged about the New York State Attorney General's suit to vacate 100,000 debt collection cases in which the defendants had allegedly never been served because of fraud by process servers.  The Times now reports that a class action has been brought on behalf of the defendants who were never served.  An excerpt about the defendants:

The class-action lawsuit filed on Monday goes after an entire debt collection chain, starting with the debt-buying companies, the law firm they hired to collect the debt, and the process-serving firm used to notify debtors. The suit names five debt-buyer firms with variations of the names L-Credit and LR Credit. All are subsidiaries of Leucadia National, a $6 billion publicly traded holding company engaged in various businesses, including timber and manufacturing. The company, which is also named as a defendant, declined comment on the suit.

Full post as published by CL&P Blog on January 01, 2010 (boomark / email).