Andrew Cuomo, Attorney General of NY announced yesterday that “at a time when New York families are already struggling with unprecedented levels of debt, unscrupulous collection agencies add salt to an open wound. Using fear and intimidation to take advantage of individuals facing debt is a shameful and illegal scare tactic. This judgment is the first step in this Office’s expanding investigation into debt collectors that violate the rights of consumers and operate outside of the law.”
Cuomo’s office issued a court order to shut down Lamont Cooper and his two debt collection companies, Emanee Development, Inc. and Dial Tech LLC, and Cooper will be forced to pay restitution to consumers statewide for having “lied to consumers, threatened to arrest them, and intimidated them into paying debts that they sometimes did not even owe. They would often call third parties like neighbors or employers to further embarrass and harass consumers.” His office also announced he has subpoenaed nearly 20 other debt collectors across the state that allegedly engaged in illegal debt collection practices.
As attorneys who represent victims of debt collector harassment and abuse, Lemberg & Associates sees incidents such as this spiking together with the unemployment rates. In fact we have won several cases against a subpoenaed company named in his action, so we’re well aware of the kind of abusive tactics that are being employed.
Attorney General Cuomo has picked a good and important fight to stop illegal collection practices. By getting the word out about the Fair Debt Collection Practices Act, he’s bringing attention to consumer’s rights under the law…the ignorance of which collection agencies have relied upon to get away with illegal collection tactics for more than thirty years. We believe that as more people are aware of the law, these agencies will take the warning, and fewer will attempt to get away with it.
There is a new law pending in New Jersey that would be of benefit to any state resident who might deal with a debt collector, and we sincerely hope, would finally give debt collectors pause before they harass or abuse people while they attempt to collect their debts. The bill goes beyond the Federal Fair Debt Collection Practices Act which protects people from being harassed or abused by debt collectors.
Proposal A3839 was introduced before the New Jersey General Assembly, and would require any debt collection agency to provide additional information to debtors, including copies of the FDCPA. It would also raise violation fines to at least $10,000 for the first offense, $20,000 for each additional offense.
The bill as introduced states:
“In addition to any federal requirements, a debt collector shall, in connection with the collection of any debt, deliver to the debtor a written notice, in 10 point font, containing:
- The amount of the debt owed to the creditor, separately stating any additional fees and charges;
- The name of the creditor to whom the debt is owed;
- Verification of the debt or a copy of a judgment against the debtor; and
- A copy of the United States Fair Debt Collections Practices Act.
The bill specifies that violations would be unlawful practices under the consumer fraud act. An unlawful practice under the Consumer Fraud Act is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, a violation can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages and the awarding of treble damages and costs to the injured.”
The bill is sponsored by Assemblyman Paul D. Moriarity of District 4 (Camden and Gloucester), Assemblyman Reed Gusciora of District 15 (Mercer), and Assemblywoman Nilsa Cruz-Perez District of 5 (Camden and Gloucester). Proposal A3839 was introduced on March 9, 2009 and referred to the New Jersey Assembly Consumer Affairs Committee.
If enacted, this law would go above and beyond the federal FDCPA rules for debt collectors. We’ve seen a marked spike in the incidents of debt collector abuse in the recent months, as more and more people have lost their jobs and are unable to keep up with their bills. The debt collectors are getting more aggressive in their practices, and rely on the fact that so few know their rights under the FDCPA.
