How Debt Collection in NY Works

[creditorRights]

What is the name of your state (only U.S. law)? New York

I just want to give the readers on this forum some insight about the practices of debt collectors in the State of New York. I have worked in a debt collection Attorney's office for 8 years, I started as a filing clerk and now I am in charge of judgment enforcement. The firms biggest clients are NYS hospitals (Our Lady of Mercy Med Center, Brookhaven Hosp., Montiefiore Med Center, South Nassau Communities Hosp, Sound Shore Med Cent to name a few)

The early stages: Hospitals send out bills, religiously. They get generated from a computer and mailed out every 30 days for 6 months before the hospital will move it to "legal status" and send it to a collection agency. Please be aware this debt is not SOLD to the CA, but rather the CA is hired by the hospital to collect the debt on a contingency basis.

The CA also doubles as a past due billing agency, so if there was any kind of insurance issues (no fault cases, medicaid, miscommunication at hospital) the CA can bill the insurance company and get paid. The CA will also make phone calls (about 600 in a year), write letters, if there is no response the claim then gets fowarded to the Attorneys office for collection, please note at this point the debt is NOT sold to the Attorney but rather the Attorney is hired to collect the money for the hospital. I've seen this done two ways 1) on a contingency basis 2) with an upfront suit fee and no contingency on any money collected.

At this point the Atty will review and accept or reject the claim and add it to his system. The first letter to go out is a validation notice, telling the debtor he or she has 30 days to dispute the validity of the debt in writing (if they do, then the Atty will foward a copy of the medical bills). If there is no dispute or payment arrangement made then 35 days after the first letter a summons and complaint is issued.

The summons in itself is fascinating, unfortunately for debtors - NYS has very very lax service law. You do not need to be personally handed a summons in order for the service to be effective, it can be affixed to a door after 3 different attempts or left with someone of suitable age (which is 14 or older). This may frequently lead to the party(s) within the action not actually knowing they are being sued. This is where most payment arrangements and settlements are made. If one fails to answer the summons within 20 days of the proof of service if you were personally served - 30 days if you were not, then a default judgment is entered.

Notice of entry of the judgment will then be mailed to the debtor. The debtor then has 7 days before blanket or canvas restraining notices with information subs are sent out to every major bank in the State of New York. If the Attorneys office knows where a debtor works sometimes they will just skip the RN's and go straight for a first stage income execution with the marshall or sheriffs office. New York State judgments can be enforced for 20 years, and with every payment made the 20 years is renewed.

If you have any questions or feel like I missed anything that has happened to you (I did not get into property executions by a levying officer, transcripts of judgment, liens on real property) please let me know and I will do my best to give a complete answer.

[debtcollector`]

Great. Welcome.

DC

[ashleywilkes]

So they can only go after a bank account that is with in NY State? They cant go after an out of state account?

[Antigone*of*Greece]

Originally Posted by ashleywilkes

So they can only go after a bank account that is with in NY State? They cant go after an out of state account?

You've got three strikes and have used them all. First you've started multiple threads on the same subject. Second you've hijacked this OP's loser rant and third you are now necroposting.

Please stop.

[cosine]

Originally Posted by Wirelessany1

You've got three strikes and have used them all. First you've started multiple threads on the same subject. Second you've hijacked this OP's loser rant and third you are now necroposting.

Please stop.

It seems like you are one who likes to do the strikes at people.

It looks like a legitimate followup question to what was posted in this thread. Why should someone start a new thread, or post in some other thread, a question regarding a post in this thread? The question was not asked in the context of a specific problem posted elsewhere. It was asked in a generic way.

It it asking for the OP to extend the topic. Maybe the OP has knowledge regarding that, and the time and willingness to augment the posting to provide that information. I'm curious, too. I know there are many cases where people are sued in one state who live in another. It often happens through misidentification. or it can be a completely legitimate matter (because the parties agreed on the jurisdiction). Or maybe the OP doesn't have that information. Maybe in his job he only deals with in-state issues.

[Antigone*of*Greece]

You continue to show how clueless you really are!

I've said my piece and now I will disengage.

[cosine]

Originally Posted by Wirelessany1

You continue to show how clueless you really are!

I've said my piece and now I will disengage.

You must be the same person as JETX and DC. Same MO, which is to never point to what you think might be in error, and instead just make a blanket personal attack on people that say things you don't like.