Circuit Court Upholds “Sewer Service” Debt Collection Class Action

  • Email
  • Print
  • Printing Articles

    1. Click here to print!
    2. ...or print directly from your browser by choosing File > Print... from the menu or by pressing [Ctrl + P]. Our printer-friendly stylesheet will make sure extraneous website stuff isn't printed.
    3. You're done!

    Close this message.

  • Comments
  • RSS

The Second Circuit Court of Appeals Tuesday in a split decision ruled that a district court was within its rights to grant class action status to a lawsuit claiming FDCPA and RICO Act violations for improper service of process in debt collection legal actions.

The case, Monique Sykes et al., vs. Mel Harris & Associates, LLC et al., alleges that collection law firm Mel Harris, acting on behalf of debt buyer Leucadia National Corp., employed a process server that allegedly deliberately did not properly serve collection lawsuit defendants with notices they were being sued. As a result, the suit alleges that when the debtors didn’t appear in court, Leucadia and Mel Harris obtained default judgments against them, which allowed them to freeze debtors’ bank accounts and threaten to garnish wages or property to obtain settlements.

  • Email
  • Print
  • Printing Articles

    1. Click here to print!
    2. ...or print directly from your browser by choosing File > Print... from the menu or by pressing [Ctrl + P]. Our printer-friendly stylesheet will make sure extraneous website stuff isn't printed.
    3. You're done!

    Close this message.

  • Comments
  • RSS

Posted in Collection Law Firms, Collection Laws and Regulations, FDCPA .

×
Subscribe to our email newsletters

Continuing the Discussion

We welcome and encourage readers to comment and engage in substantive exchanges over topics on insideARM.com. Users must always follow our Terms of Use. Also know that your comment will be deleted if you: use profanity, engage in any kind of hate speech, post an incoherent or irrelevant thought, make a point of targeting anyone, or do anything else we find unsavory. Your comment will be posted under your current Display Name, shown below. If you'd like to change your Display Name, you must update it on the My Profile page.

Leave a Reply