Racketeering Suit Against Debt Collector Gains Traction

We read with interest Daniel Fisher’s “Full Disclosure” blog over at Forbes. In this particular entry, he reports that a New York federal judge is allowing a class action suit against Leucadia National and Mel Harris & Associates to move forward. The suit alleges that the debt collector and law firm engaged in racketeering (violating the RICO Act) by robo-signing debt validation affidavits and obtaining judgments against consumers, then threatening to freeze their bank accounts or garnish their wages. Mel Harris & Associates has filed more than 100,000 lawsuits against consumers, and is being accused of what’s termed “sewer service,” telling the court that they’ve delivered the proper notifications to consumers but never actually doing so.