State Courts to Expand Protection From 'Zombie Debts'

, New York Law Journal

   | 4 Comments

Responding to what he called a "continuing stream of complaints," Chief Judge Jonathan Lippman said Wednesday that New York courts will crack down on the filing of insufficiently documented claims for default judgments against consumer debtors.

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Originally appeared in print as Lippman Proposes New Rules to Police Debt Collection Practices

What's being said

  • Publius

    This is undeliverable example of public policy going so wrong!

    New York State Private Process Servers Association (NYSPPSA) sued the city recently and it appears to distract from all the sewer servers issue that their own leader their treasurer is currently defending a class action against.

    You know what is really interesting is the city filed a motion to dismiss. In the motion it claims that the plaintiff New York State Private Process Servers (NYSPPSA) did not state a claim in which relief can be made for the two process server they made plaintiffs. In addition another interesting factoid is of the 9 board members only one is licensed by New York. Here is the City motion to dimiss http://processserverposse.com/phpBB-3.0.11/phpBB3/viewtopic.php?f=20&t=169

  • Publius

    This is undeliverable example of public policy going so wrong!

    New York State Private Process Servers Association (NYSPPSA) sued the city recently and it appears to distract from all the sewer servers issue that their own leader their treasurer is currently defending a class action against.

    You know what is really interesting is the city filed a motion to dismiss. In the motion it claims that the plaintiff New York State Private Process Servers (NYSPPSA) did not state a claim in which relief can be made for the two process server they made plaintiffs. In addition another interesting factoid is of the 9 board members only one is licensed by New York. Here is the City motion to dimiss http://processserverposse.com/phpBB-3.0.11/phpBB3/viewtopic.php?f=20&t=169

  • As a process server, I take exception to the statement that many of the debtors were victims of sewer service. Sewer service is the new word to sling mud at the process serving industry.
    If it were true, that these defaults were the result of a process server not doing his job, there would be more traverse hearing on these cases, and the proportion of traverse hearing to default judgment does not reflect this claim. It seems that the legislative bodies are using process servers as scapegoats, many servers who only get paid $10.-$15 to serve a collection case, and try to do a good job in finding the debtor.

    I do believe that legislation should look more deeply into the practice of Collection Attorneys, who buy the debt for pennies on the dollar and seek to reclaim money that is many years old and have 100’s of thousands of dollars of investment money on the line. Let’s place the blame for these default judgments squarely where they belong and stop implying that Process Servers are the bad guys here.

  • Elliott P.

    What is next? Requiring confessions from criminal defendants before an indictment?

    My mistake, criminal defendants have "rights", creditors don‘t.

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