May 27, 2010

By: Michelle Grinberg, Esq.

A report issued by The Legal Aid Society, MFY Legal Services, Inc., NEDAP, and Urban Justice Center claims that debt buying companies routinely engage in unlawful debt collection practices which targets low-income individuals.  The report states that these debt buyers file lawsuits which lack any merit against those who are considered to be low to moderate income individuals.  Most of the time the debt buyers are able to get a default judgment against such individuals because they were never served with the lawsuit and were unaware that an action was instituted against them until their wages are garnished and/or their banks accounts are levied or frozen.  Individuals who become victim to such unscrupulous practices should contact an attorney as soon as possible.