Know Your Rights

Failure to Serve Debtors Violate the FDCPA

In a claim filed jointly by the Consumer Financial Protection Bureau ("CFPB") and the Federal Trade Commission ("FTC") both agencies agreed that collection firm, Mel Harris & Associates, LLC et al ("Harris"), violated the Fair Debt Collection Practices Act ("FDCPA") when it allegedly intentionally failed to properly serve collection lawsuits on defendants by providing them with notice that they were being sued. 

In Monique Sykes et al., vs. Mel Harris & Associates, LLC et al., the collection law firm, Harris, acting on behalf of a debt buyer, hired a process server that allegedly purposely failed to properly serve defendant debtors with court documents.  As a result of the improper service, when the debtors failed to appear in court, Harris and the debt buyer obtained default judgments against the debtors allowing them to garnish the debtors' wages and or property and to freeze the debtors' bank accounts in an effort to reach a settlement. 

During the investigation, collection agents working for Harris stated under oath that the process had been properly served upon the debtors.  However as the investigation continues, officials are discovering that this was not the case and furthermore, because of alleged collusion between Harris and the debt buyer, there are potential Racketeer Influenced and Corrupt Organization Act ("RICO") violations that have arisen.   
In its response to the case now before the Second Circuit Court of Appeals on violations of the FDCPA, both the CFPB and the FTC state that the Defendants should be formally charged with violations of the FDCPA for its conduct. 

If you are involved in a collection lawsuit and believe you have failed to receive proper notice of the suit, you may be a victim of a violation of the FDCPA and you have rights.  Contact SmithMarco P.C. to discuss your situation in great detail with a licensed attorney for a free case review

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