New York AG suing 35 law firms for Debt Collection Practices

New York Attorney General Andrew Cuomo sued 35 law firms and two debt collection agencies to throw out about 100,000 default judgments he said were improperly obtained in debt-related lawsuits.

Cuomo said in court papers filed in Buffalo, New York, that the firms and debt collectors relied on American Legal Process to notify the defendants they faced lawsuits and that the company failed to properly serve the consumers with legal papers. “Our legal system is defined by due process and the guarantee that every New Yorker will get the chance to defend him or herself in court,” Cuomo said yesterday in a statement. “ALP’s scheme undermined the foundation of this system and denied thousands of individuals their day in court.” Cuomo is asking the court to throw out default judgments, where the defendants failed to respond, in cases in which the law firms used American Legal Process to serve the defendants and in which the firms can’t provide evidence other than the company’s statements that the defendants were properly served. Cuomo said in April that Island-based American Legal Process ran a fraudulent business scheme from January 2007 to October 2008 in which the company claimed to have served 98,000 debt-lawsuit summonses and complaints. The firm is also accused of concealing the fraud by falsifying sworn affidavits of proper service. “In this day and age, it is important to know that there are Debt Collectors and Law Firms collecting debt from consumers aggressively and unscrupulously. At Key Debt, we are committed to our customers and keep up on the day to day business of the Debt Collections industry. Our goal is to protect the consumer and work diligently to settle our client’s debts” said Wyatt Johnson, president of Key Debt Services. About Key Debt Services Key Debt Services was founded with one goal in mind -- to help our clients become debt free. Our proven system provides a long-term solution -- in the shortest amount of time without filing bankruptcy -- to help our clients get out of debt and stay out of debt. Our experienced team of experts help our clients achieve their goal of eliminating debt and regaining financial independence. We have a proven track record and are here to assist our clients reach financial freedom. Key Debt Services is an Accredited Member of TASC, The Association of Settlement Companies, and their negotiators are certified by the IAPDA.

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Our experienced team of experts help our clients achieve their goal of eliminating debt and regaining financial independence. We have a proven track record and are here to assist our clients reach financial freedom.