Category:

Sued by Pressler? Read this.

March 23rd, 2019 by

If you were sued by Pressler & Pressler you may have the opportunity to sue them for up to $1,000, plus any actual damages you have suffered.

Denbeaux Will Help Consumers Sue Pressler for FDCPA Violations

For a free evaluation of your case, click here now.

Your responses will allow us to identify all potential claims and quickly evaluate your case.  This evaluation is at no cost to you, of course, and if we can identify an actionable violation, we will be able to take your case.

Federal law penalizes debt collectors such as Pressler & Pressler for violations of the Fair Debt Collection Practices Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act, which prohibits unfair and deceptive acts or practices in the consumer financial marketplace.

On April 25, 2016, the law firm Pressler & Pressler, LLP and debt buyer New Century Financial Services, Inc. were fined by the Consumer Finance Protection Bureau, a federal agency, for sending out deceptive, intimidating, and illegal collections lawsuits to collect money from people in New Jersey.

You may be able to collect up to $1,000 at no cost to you if a debt collector violated the FDCPA while trying to collect a debt from you.


RESOURCES

CFPB Takes Action to Halt Illegal Debt Collection Practices and Lawsuit Mill and Debt Buyer – CFPB Press Release April 25, 2016

So Sue Them. What We’ve Learned About the Debt Collection Lawsuit Machine – by Paul Kiel Pro Publica May 5, 2016

$2.5 Million CFPB Action Ratchets Pressure on Debt Collection Suit – by Chris Bruce Bloomberg BNA April 26, 2015

CFPB Announces Consent Orders Against Law Firm and Debt Buyer – by Tim Bauer insideARM.com accounts receivable management April 26, 2016

Feds Take Action to Stop Illegal Debt Collection Practices bu Morris County “Lawsuit Mill” by Dave Schatz New Brunswick Today April 26, 2016

New Jersey Lawsuit Mill Fined $2.5 Million by Teresa Lo JD Journal April 26, 2015


Category:Press Release

CFPB Takes Action to Halt Illegal Debt Collection Practices By Lawsuit Mill and Debt Buyer

CFPB Bars Law Firm, Debt Buyer from Churning Out Illegal Collections Lawsuits and Imposes $2.5 Million in Penalties

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) today ordered the debt collection law firm Pressler & Pressler, LLP, two principal partners, and New Century Financial Services, Inc., a debt buyer, to stop churning out unfair and deceptive debt collection lawsuits based on flimsy or nonexistent evidence. The consent orders bar the companies and individuals from illegal practices that can deceive or intimidate consumers, such as filing lawsuits without determining if debts in question are valid. The orders also require the firm and the named partners to pay $1 million, and New Century to pay $1.5 million to the Bureau’s Civil Penalty Fund.

“For years, Pressler & Pressler churned out one lawsuit after another to collect debts for New Century that were not verified and might not exist,” said CFPB Director Richard Cordray. “Debt collectors that file lawsuits with no regard for their validity break the law and violate the public trust. We will continue to take action to protect borrowers from abuse.”

Pressler & Pressler is a New Jersey-based law firm that collects consumers’ debts for creditors through lawsuits and other means. New Century Financial Services, also based in New Jersey, buys and collects defaulted consumer debts and hands off those accounts to Pressler & Pressler for collection. To collect alleged debts on behalf of New Century and others, Pressler & Pressler filed hundreds of thousands of lawsuits against consumers.  Sheldon H. Pressler and Gerard J. Felt, partners of the firm, each participated in the firm’s debt collection litigation practices.

The CFPB found that to mass-produce these lawsuits, Pressler & Pressler used an automated claim-preparation system and non-attorney support staff to determine which consumers to sue. Attorneys generally spent less than a few minutes, sometimes less than 30 seconds, reviewing each case before initiating a lawsuit. This process allowed the firm to generate and file hundreds of thousands of lawsuits against consumers in New Jersey, New York, and Pennsylvania between 2009 and 2014. The CFPB found that the respondents violated the Fair Debt Collection Practices Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act, which prohibits unfair and deceptive acts or practices in the consumer financial marketplace. Specifically, the CFPB found that Pressler & Pressler, the firm’s named partners, and New Century Financial Services:

  • Made false or empty allegations about consumer debts: The CFPB found that the firm, the named partners, and New Century filed lawsuits against consumers without sufficient basis. Neither the firm nor New Century reviewed documents supporting the validity of debts.
  • Filed lawsuits based on unreliable or false information: Some consumers had previously challenged the validity or accuracy of the debts, but the firm or New Century did not obtain or review information to justify their claims. The firm and New Century also filed suits and collected debt knowing that some account portfolios targeted for lawsuits contained unreliable or false information.
  • Harassed consumers with unsubstantiated court filings: The CFPB found that the firm, the named partners, and New Century filed collection suits generated mainly by automated processes that relied on summary data. The firm won the vast majority of the lawsuits by default when consumers did not defend themselves, even though neither Pressler & Pressler nor New Century had verified that the debts were actually owed.

Enforcement Action

Under the Dodd-Frank Act, the CFPB has the authority to take action against institutions or individuals that engage in unfair, deceptive, or abusive acts or practices. The CFPB also has authority over debt collection practices under the Fair Debt Collection Practices Act. The CFPB orders require that Pressler & Pressler, the firm’s named partners, and New Century Financial Services must:

  • Stop filing lawsuits with unsubstantiated claims: Pressler & Pressler, the named partners, and New Century cannot file lawsuits or threaten to sue to collect debts unless they obtain and review specific account-level documents and information showing the debt is accurate and enforceable.
  • Ensure accurate court filings: The firm, the named partners, and New Century may not use affidavits as evidence to collect debts unless they accurately describe relevant facts including that the individual executing the affidavit has personal knowledge of the debt, or, if not, has reviewed documentation related to the debt. The firm must also keep an electronic record showing it is following proper procedures.
  • Pay civil penalties: The firm and the named partners must pay a penalty of $1 million to the CFPB’s Civil Penalty Fund. New Century must pay a penalty of $1.5 million.

The CFPB’s order against Pressler & Pressler and the named partners is available at: http://files.consumerfinance.gov/f/documents/201604_cfpb_consent-order-pressler-pressler-llp-sheldon-h-pressler-and-gerard-j-felt.pdf 

The CFPB’s order against New Century Financial Services is available at: http://files.consumerfinance.gov/f/documents/201604_cfpb_consent-order_new-century-financial-services-inc.pdf 

This action continues the Bureau’s work to address illegal debt collection practices across the consumer financial marketplace, including companies that sell, buy, and collect debt. In recent separate enforcement actions, the CFPB has ordered large banks, credit card issuers, debt buyers, and firms to overhaul their debt collection practices and refund millions to harmed consumers. The Bureau will continue working to ensure all players in the collections market treat consumers fairly.

###
The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov.

Are all lawsuits by Pressler fraudulent?

March 7th, 2019 by

No. That said, in 2014, Pressler obtained over 50,000 judgments in New Jersey Courts. Please get us all communications you still have from Pressler and the docket number of the lawsuit that Pressler filed against you.

How Do I Know if I Have a Claim Against Pressler?

In order for us to review your case, we will need your address, the docket number of the complaint filed by Pressler and as much of the communication you sent to and received from Pressler as you saved.

What is the DEBT was more than six years old?

Please reach out to my firm right away.  The statute of limitations on most debts is only six years after default.

What if there is an Existing Judgement?

Existing judgments might be actionable. You should contact us so we can guide you as to best how to do this.

Please let us know if you receive any other communications from Pressler or any other collection outfit and we will review your potential case at that time

In the future, no matter what happens with this potential claim, please keep careful track of all documents you receive from any debt collector.

What is Pressler is harassing me on the phone or with letters related to collecting a debt?

Harassment by any means can violates federal law.  If Pressler harassed you, or is still harassing you, then you may have a claim. What records of these communications have you kept? It is strongly advised that you retain all records from all collection companies. Please give my office a call and get us your communications to and from Pressler.

Is Pressler actively Garnishing wages or Paid a Judgement on a Debt that was old or not owed?

We are interested in speaking with you about your possible claim.  Please be able to get us certain information when we speak, including: your contact information, the docket numbers of all suits that Pressler has filed against you and any documentation to or from Pressler that you have kept.

Pressler Sue You?

March 1st, 2019 by

If you were sued by Pressler & Pressler you may have the opportunity to sue them for up to $1,000, plus any actual damages you have suffered.

Federal law penalizes debt collectors such as Pressler & Pressler for violations of the Fair Debt Collection Practices Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act, which prohibits unfair and deceptive acts or practices in the consumer financial marketplace.

On April 25, 2016, the law firm Pressler & Pressler, LLP and debt buyer New Century Financial Services, Inc. were fined by the Consumer Finance Protection Bureau, a federal agency, for sending out deceptive, intimidating, and illegal collections lawsuits to collect money from people in New Jersey.

After being sued by the CFPB the firm agreed to pay a $1,000,000 penalty. It also admitted to violating a key federal consumer protection law known as the Fair Debt Collection Practices Act.

You may be able to collect up to $1,000 at no cost to you if a debt collector violated the FDCPA while trying to collect a debt from you. Contact us below now to learn more.

According to a May 5, 2016 article in ProPublica by Paul Kiel,  “So Sue Them: What We’ve Learned About the Debt Collection Lawsuit Machine”, in recent years Pressler & Pressler obtained debt collection judgments against 76,000 New Jersey residents annually. In 99% of these collection actions, the defendants being sued by did not have attorneys and could not often adequately stand up for their rights.

In fact, the firm admitted that many of the lawsuits were filed without having proof that the debt was owed by the consumer or that the amount owed and terms were accurate.  They admitted filing lawsuits based on false information.

Even if a judgment has already been entered against you, you may be entitled to a statutory recovery of up to $1,000.00.  This time, stand up for your rights with an attorney.

Pressler & Pressler already agreed to pay $1,000,000 to the Federal Government, but none of that will be distributed to you.  Your relief requires you take action now.

Category:Press Release

CFPB Takes Action to Halt Illegal Debt Collection Practices By Lawsuit Mill and Debt Buyer

CFPB Bars Law Firm, Debt Buyer from Churning Out Illegal Collections Lawsuits and Imposes $2.5 Million in Penalties

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) today ordered the debt collection law firm Pressler & Pressler, LLP, two principal partners, and New Century Financial Services, Inc., a debt buyer, to stop churning out unfair and deceptive debt collection lawsuits based on flimsy or nonexistent evidence. The consent orders bar the companies and individuals from illegal practices that can deceive or intimidate consumers, such as filing lawsuits without determining if debts in question are valid. The orders also require the firm and the named partners to pay $1 million, and New Century to pay $1.5 million to the Bureau’s Civil Penalty Fund.

“For years, Pressler & Pressler churned out one lawsuit after another to collect debts for New Century that were not verified and might not exist,” said CFPB Director Richard Cordray. “Debt collectors that file lawsuits with no regard for their validity break the law and violate the public trust. We will continue to take action to protect borrowers from abuse.”

Pressler & Pressler is a New Jersey-based law firm that collects consumers’ debts for creditors through lawsuits and other means. New Century Financial Services, also based in New Jersey, buys and collects defaulted consumer debts and hands off those accounts to Pressler & Pressler for collection. To collect alleged debts on behalf of New Century and others, Pressler & Pressler filed hundreds of thousands of lawsuits against consumers.  Sheldon H. Pressler and Gerard J. Felt, partners of the firm, each participated in the firm’s debt collection litigation practices.

The CFPB found that to mass-produce these lawsuits, Pressler & Pressler used an automated claim-preparation system and non-attorney support staff to determine which consumers to sue. Attorneys generally spent less than a few minutes, sometimes less than 30 seconds, reviewing each case before initiating a lawsuit. This process allowed the firm to generate and file hundreds of thousands of lawsuits against consumers in New Jersey, New York, and Pennsylvania between 2009 and 2014. The CFPB found that the respondents violated the Fair Debt Collection Practices Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act, which prohibits unfair and deceptive acts or practices in the consumer financial marketplace. Specifically, the CFPB found that Pressler & Pressler, the firm’s named partners, and New Century Financial Services:

  • Made false or empty allegations about consumer debts: The CFPB found that the firm, the named partners, and New Century filed lawsuits against consumers without sufficient basis. Neither the firm nor New Century reviewed documents supporting the validity of debts.
  • Filed lawsuits based on unreliable or false information: Some consumers had previously challenged the validity or accuracy of the debts, but the firm or New Century did not obtain or review information to justify their claims. The firm and New Century also filed suits and collected debt knowing that some account portfolios targeted for lawsuits contained unreliable or false information.
  • Harassed consumers with unsubstantiated court filings: The CFPB found that the firm, the named partners, and New Century filed collection suits generated mainly by automated processes that relied on summary data. The firm won the vast majority of the lawsuits by default when consumers did not defend themselves, even though neither Pressler & Pressler nor New Century had verified that the debts were actually owed.

Enforcement Action

Under the Dodd-Frank Act, the CFPB has the authority to take action against institutions or individuals that engage in unfair, deceptive, or abusive acts or practices. The CFPB also has authority over debt collection practices under the Fair Debt Collection Practices Act. The CFPB orders require that Pressler & Pressler, the firm’s named partners, and New Century Financial Services must:

  • Stop filing lawsuits with unsubstantiated claims: Pressler & Pressler, the named partners, and New Century cannot file lawsuits or threaten to sue to collect debts unless they obtain and review specific account-level documents and information showing the debt is accurate and enforceable.
  • Ensure accurate court filings: The firm, the named partners, and New Century may not use affidavits as evidence to collect debts unless they accurately describe relevant facts including that the individual executing the affidavit has personal knowledge of the debt, or, if not, has reviewed documentation related to the debt. The firm must also keep an electronic record showing it is following proper procedures.
  • Pay civil penalties: The firm and the named partners must pay a penalty of $1 million to the CFPB’s Civil Penalty Fund. New Century must pay a penalty of $1.5 million.

The CFPB’s order against Pressler & Pressler and the named partners is available at: http://files.consumerfinance.gov/f/documents/201604_cfpb_consent-order-pressler-pressler-llp-sheldon-h-pressler-and-gerard-j-felt.pdf 

The CFPB’s order against New Century Financial Services is available at: http://files.consumerfinance.gov/f/documents/201604_cfpb_consent-order_new-century-financial-services-inc.pdf 

This action continues the Bureau’s work to address illegal debt collection practices across the consumer financial marketplace, including companies that sell, buy, and collect debt. In recent separate enforcement actions, the CFPB has ordered large banks, credit card issuers, debt buyers, and firms to overhaul their debt collection practices and refund millions to harmed consumers. The Bureau will continue working to ensure all players in the collections market treat consumers fairly.

###
The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers to take more control over their economic lives. For more information, visit consumerfinance.gov.

Sued by Pressler? Read this.

February 28th, 2019 by

If you were sued by Pressler & Pressler you may have the opportunity to sue them for up to $1,000, plus any actual damages you have suffered.

Denbeaux Will Help Consumers Sue Pressler for FDCPA Violations

For a free evaluation of your case, click here now.

Your responses will allow us to identify all potential claims and quickly evaluate your case.  This evaluation is at no cost to you, of course, and if we can identify an actionable violation, we will be able to take your case.

Federal law penalizes debt collectors such as Pressler & Pressler for violations of the Fair Debt Collection Practices Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act, which prohibits unfair and deceptive acts or practices in the consumer financial marketplace.

On April 25, 2016, the law firm Pressler & Pressler, LLP and debt buyer New Century Financial Services, Inc. were fined by the Consumer Finance Protection Bureau,

a federal agency, for sending out deceptive, intimidating, and illegal collections lawsuits to collect money from people in New Jersey.

You may be able to collect up to $1,000 at no cost to you if a debt collector violated the FDCPA while trying to collect a debt from you.

CFPB Proposes New Requirement on Debt Collectors

September 13th, 2016 by

CFPB Proposes New Requirement on Debt Collectors Targeted to Educate Consumers of the Risks in Debt Collection Litigation, by Adam Deutsch, Esq.

Adam Deutsch, Esq.

Recently, the Consumer Financial Protection Bureau(CFPB) released a report of proposed rules intended to clarify the scope of the Fair Debt Collection Practices Act, which in part governs the conduct of third party debt collectors.  Buried in among the proposals is a potential game changing disclosure requirement mandating collectors to educate their consumer targets of the consequences that can result from debt collection litigation.

The CFPB cites a now outdated 2010 report from the Federal Trade Commission, showing that as much as 95% of all debt collection lawsuits are not contested by the consumer.  The consequences of these judgments run deep.  ProPublica reported in May 2016 that well over 4 million Americans are subjected to wage garnishmentsresulting from judgments to enforce consumer debts.

The volume of debt collection cases is truly staggering.  The same ProPublica report shows that in New Jersey an astonishing 48% of all civil court judgments in 2011 were entered in debt collection cases.  The numbers continue to go up.

Under the proposed rule, debt collectors would be required to provide a written litigation disclosure in all written and oral communications with the debtor, that set forth the (1) collectors intention to sue, (2) a court could rule against the consumer if they fail to defend a lawsuit, (3) and that additional information about defending collection lawsuits is available on the CFPB website.

These disclosures can be viewed as part of a debtors “bill of rights.”  There is potential for the disclosures to lower the number of uncontested judgments, which is a good thing.  Today, many consumers do not contest debt collection actions because they believe they are in the process of negotiating an out of court settlement with the collector.  A debtor may trust that the collector is working with them, only to later find that no agreement is reached and wages are being garnished.  The disclosures should help combat this problem.

The disclosures could be made stronger however.  For example, the disclosures could (1) advise the debtors that they have a legal right to contest the collection action; (2) that the process of negotiating an agreement with the collector outside of court does not necessarily prevent the collector from simultaneously pursuing a lawsuit or obtaining a judgment; and (3) if a collection lawsuit is successfully defended, the debtor’s legal fees may be paid for by the collector.  The third additional proposal is key.  For many debtors, the belief that legal fees are insurmountable prevents them from making any effort to defend a collection action.  Where a debt collector uses any false information, fails to provide required disclosures to the debtor, or otherwise fails to comply with a section of the Fair Debt Collection Practices Act, the debt collector becomes liable to the debtor for actual damages, a statutory fine of up to $1,000.00 and the debt collector must pay the debtor’s legal fees and court costs.

Proposed rules from the CFPB are a great start, but should be strengthened even more.  Too often, the information used by third party debt collectors is inaccurate as to the interest rates, amounts owed or even identity of the debtor.  Yet, because of basic system wide hurdles placed in front of the debtors up to 95% of all collection lawsuits result in uncontested judgments.  In these cases, the Courts not only rubber stamps the debt collector’s request for judgment without analyzing its right to collect, the Court acts as a broker and allows the judgment to be collected by garnishing wages directly from the consumer’s paycheck.  The new rules cannot come soon enough.  The rules to protect consumers are already in place, the new proposals will go a long way to educating consumers of their rights before the long lasting damage of a lawsuit judgment is obtained.

‘These Are People’s Lives You’re Playing With:’ The Fight To Curb Debt Collector Lies

February 2nd, 2016 by

‘These Are People’s Lives You’re Playing With:’ The Fight To Curb Debt Collector Lies

The lawyers who enable an abusive business model for collecting consumer debts are now on the hook for their clients’ screwups. The post ‘These Are People’s Lives You’re Playing With:’ The Fight To Curb Debt Collector Lies appeared first on ThinkProgress. Read entire story.

Source: ThinkProgress

Episode 12 NJ Attorney Sees Debtors Legal Rights Enforced with FDCPA

January 13th, 2016 by

NJ Attorney Sees Debtors Legal Rights Enforced with FDCPA

In April 2015 Adam Deutsch, Esq. of the law firm of Debnbeaux and Denbeaux and Ashleigh Lewis, had a piece published in the Rutgers Law Journal “Attorney Liability in Lien Enforcement: The Untapped Potential of the FDCPA“. In this work the authors discussed how prevalent FDCPA claims are, and how simple they are to enforce, and the potential for monetary damages to be awarded to debtors. Quoting from the conclusion of “Attorney Liability in Lien Enforcement: The Untapped Potential of the FDCPA

The Fair Debt Collection Practices Act is an underutilized and undervalued statute. One need only refer to a national newspaper to find, on any given day, at least one article relating to unjust activity within the collections industry. With consumer debt at an all-time high and the American public still climbing out of the great recession, there are an abundance of FDCPA violations that go unenforced with each passing day. This should be a great concern to anyone engaged in the collections industry. The juxtaposition is that debtors and consumer attorneys have been missing an opportunity to pursue the rights granted by Congress under the FDCPA.

In a recent decision from the United States District Court of New Jersey Case 2:15-cv-04277-JLL-JAD attorney Adam Deutsh, established the potency of the FDCPA for consumers who feel they might have been wronged by unjust activity within the collections industry.

Now, in this podcast Adam Deutsch discusses  the potential for consumers to make complaints against those trying to collect as well as the attorneys who represent them by virtue of this case. Quoting from the conclusion of “Attorney Liability in Lien Enforcement: The Untapped Potential of the FDCPA

The FDCPA continues to be a self-policing statute in the civil litigation context. Federal agencies with enforcement power have made clear that they will remain on the sidelines and allow the collections industry to remain operating in the shadows of the law. The potential threat for a call to arms among debtors is very real. When it happens, the collections industry will be changed forever as the monetary incentive to pursue collections activity is greatly reduced by the threat of strict liability monetary awards, including lofty counsel fees.

United States District Court Judge: Legal Counsel Is Liable Under FDCPA For False Representations of Their Clients in Court Filings

January 5th, 2016 by

United States District Court Judge:  Legal Counsel Is Liable Under FDCPA For False Representations of Their Clients in Court Filing

NJ firm Denbeaux & Denbeaux earns major victory using FDCPA for national consumers victimized by  false information presented by law counsels at the bidding of their clients.

Westwood, NJ, January 5, 2016:   No longer can legal counsel evade liability under the Fair Debt Collection Practices Act (FDCPA) by claiming false information provided to a court or debtor was supplied by their client.  This is the conclusion of a groundbreaking judicial opinion according to Westwood, NJ financial consumer rights law firm Denbeaux & Denbeaux.

U.S. District Court Judge Jose Linares denied a debt collection law firm’s motion to dismiss in Steven Psaros vs Green Tree Servicing, LLC.  According to Judge Linares’ 16-page opinion, Psaros successfully alleged that New Jersey law firm Stern Lavinthal & Frankenberg violated FDCPA laws by charging and attempting to collect improper fees of $10,974.37 for property insurance outlays to Psaros’ home mortgage debt.  The fees were improper because Psaros had paid all taxes/insurance, and his mortgage loan contained an escrow waiver.  In response Psaros sued both Green Tree Servicing, LLC and Stern Lavinthal & Frankenburg.   Stern Lavinthal & Frankenburg argued that they were not liable for the false representations of the debt owed by Psaros because the false information was generated by their client Green Tree

Servicing, LLC.  Justice Linares rejected their defense, ruling that “Stem Lavinthal cannot evade its responsibilities as a debt collector by blaming its client for providing it with factually inaccurate information used in the process of collecting a debt.” Green Tree Servicing, LLC did not move for dismissal of the claims.

Judge Linares’ December 21 opinion is significant for Mr. Psaros and will prove meaningful to scores of other consumers facingdebt collection litigation.  It is unfortunate how often lawyers choosing to make a living collecting debts do so based-upon false information provided by their clients.  Green Tree Servicing, LLC was notified by Mr. Psaros of the error, and they still directed Stern Lavinthal & Frankenberg, LLC to collect funds not owed.  Industry wide, there is evidence that debt collectors and their attorneys regularly engage in this conduct unchecked.

The Court’s words are perfectly concise: ‘A plain reading of the statute leads to the conclusion that a violation has occurred,’” said Denbeaux & Denbeaux Partner Joshua Denbeaux.  “Systematic flaws in the state judicial process have resulted in an increased level of arrogance and greed among debt collectors as evidenced in this case.  It was not enough for the debt collection law firm and loan servicer to seek recovery of the debt owed, instead they inflated the sum by thousands of dollars and assumed with confidence they would get away without anyone noticing.  Had Mr. Psaros not been diligent to seek the assistance of an attorney, the collectors would have successfully stolen this money.”

Click here to read the entirety of Judge Linares’ decisionhttp://denbeauxlaw.com/wp-content/uploads/2015/12/Steven-Psaros-vs-Green-Tree-Servicing-LLC-Civil-Action-No15-4277-1.pdf

The law firm of Denbeaux and Denbeaux is located at 366 Kinderkamack Road Westwood New Jersey 07675. Tel: 201-664-8855 or email pr(at)denbeauxlaw(dot)com.Denbeaux and Denbeaux is a family operated law firm with a tradition of excellence in consumer rights and family law. Formed in 1989, Denbeaux & Denbeaux is a law firm dedicated to providing top level legal representation to its clients. The partners, Marcia Denbeaux and Joshua Denbeaux, represent individuals and businesses in New Jersey State and Federal Trial and Appellate Courts. The firm primarily practices civil litigation, with a concentration in mortgage foreclosure, consumer fraud, commercial litigation, matrimonial law, business, insurance coverage litigation.

Their work has been featured in major media sources throughout the country including CNN, MSNBC, NPR, C-SPAN, CBS Evening News, the Associated Press, The Star Ledger, and The Record.

For media inquiries contact: Donald Tremblay |  Phone 718-664-3405 | [email protected]

Debt Collection Law Firm Held Responsible for Client’s Misrepresentation

December 29th, 2015 by

U.S. District Court Judge Jose Linares denied a debt collection law firm’s motion to dismiss in Steven Psaros vs Green Tree Servicing, LLC. 

According to Judge Linares’ 16 page opinion,  Psaros successfully alleged that New Jersey law firm Stern Lavinthal & Frankenberg violated FDCPA laws by charging and attempting to collect improper fees of $10,974.37 for property insurance outlays to Psaros’ home mortgage debt.

The fees were improper because Psaros had paid all taxes/insurance, and his mortgage loan contained an escrow waiver. In response Psaros sued both Green Tree Servicing, LLC and Stern Lavinthal & Frankenburg.  Stern Lavinthal & Frankenburg argued that they were not liable for the false representations of the debt owed by Psaros because the information was generated by their client Green Tree Servicing, LLC.  Justice Linares rejected their defense, ruling that Stern Lavinthal cannot evade its responsibilities as a debt collector by blaming its client for providing it with factually inaccurate information used in the process of collecting a debt.” Green Tree Servicing, LLC did not move for dismissal of the claims.

Judge Linares’ December 21st opinion is significant for Mr. Psaros and will prove meaningful to scores of other consumers facing debt collection litigation.  It is unfortunate how often lawyers choosing to make a living collecting debts do so based upon false information provided by their clients.  Green Tree Servicing, LLC was notified by Mr. Psaros of the error, and they still directed Stern Lavinthal & Frankenberg, LLC to collect funds not owed.  Industry wide, there is evidence that debt collectors and their attorneys regularly engage in this conduct unchecked.

CFPB Compliance Bulletin Reminds Debt Collectors that In Person Collection Attempts Often Violation of Federal Law

December 21st, 2015 by

CFPB Compliance Bulletin Reminds Debt Collectors that In Person Collection Attempts Often Violation of Federal Law

Debt collection is big business.  According to the Federal Reserve Bank of New York, 15% of consumers have at least one debt in collections.  Third party debt collectors are constantly trying to come up with new ways to improve the rate of collections both in volume and in dollars recovered.  On December 16, 2015 the Consumer Financial Protection Bureau (“CFPB”) Compliance Bulletin 2015-07 reminding debt collectors that visiting a debtor in person at their home or place of employment is likely to be a violation of the Fair Debt Collection Practices Act.

The CFPB bulletin explains that under the Fair Debt Collection Practices Act (“FDCPA”), debt collectors are prohibited “from engaging in unfair, deceptive, or abusive acts or practices while collecting or attempting to collect consumer debts.”  Prohibited collection tactics include “communicating with a consumer at any time or place that is known or which should be known to be inconvenient to the consumer, or at the consumer’s place of business.”  Collectors are also prohibited from communicating with persons other than the debtor about information relating to the debt in question.

When a debt collector visits a debtor at place of employment, the risk of actual injury and damages to the debtor is greatly heightened.  Despite the fact that such a high percentage of Americans are in collections, there remains a stigma that could cause discrimination at work, and in some industries could be cause for termination of employment.  Visitations to a debtor’s home pose a different set of problems.  A home visitation can be a significant violation of privacy and goes against one of the Congressionally enumerated goals of the FDCPA, which is to protect consumers from collection practices that lead to invasions of individual privacy and marital instability.

Consumer debtors who are facing aggressive debt collection tactics should be aware of their rights.  If a debt collector has visited your place of business or home, your rights may have been violated and you may be entitled to monetary compensation.  Be proactive and meet with an attorney who has experience with consumer rights litigation and the FDCPA.  You can also take advantage of the services provided by the CFPB by filing a consumer complaint through the governmental agency.  It remains rare that consumers received financial compensation through the CFPB, but often times the offending conduct will stop once a complaint has been filed.