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Interesting Case: The "Bank Freeze King" gets his account Frozen and More!

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StephenH

Member
What is the name of your state (only U.S. law)? I Live in California

I was curious on your take on this case in NY. The courts really threw the book at a debt collector "Mel S Harris" (which has the nickname of the "Bank Freeze King"), and other firms including Leucadia, and their process server Samserv for using false service evidence (a.k.a "sewer service") to obtain default judgments. There was evidence that the same process servers were in multiple places simultaneously (which is not physically possible). Other evidence is that the process server made false documents that people were served, and yet they were home and no on came to the door.

The settlement obtained preliminary approval. Final approval is coming in a few months. This debt collector will be shut down, over 110,000 default judgments will be vacated, and the debts in question will likely be sold to a non-profit organization (likely Rolling Jubilee) with orders to forgive the debt as a gift. The settlement also offers millions of dollars that will be paid to the debtors.

https://www.sykesclassaction.com/en

Personally I think this is a wake up call and an important lesson to debt collectors to serve the people properly and not produce false documents that one has been served when they really haven't in order to obtain a default judgment.

How do you think this will resonate in the debt collection community? I'd like to hear your thoughts.
 


single317dad

Senior Member
There are millions of debt collection cases that could be reexamined based on poor service, sketchy affidavits, FDCPA violations, improper procedure, and even completely falsified documents. Most consumers either actually owe the debt (in which case they're likely to lose in court, as courts try to divine truth from evidence to make decisions), and/or never appear to defend themselves, so most of that bad behavior will go unpunished. It's good to see at least one collection firm having their behavior corrected (there are other examples of this), but overall I don't think it will set enough of an example to change the industry.
 

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