Legal Newsline

Thursday, September 19, 2019

New York AG obtains injunction against debt collection operation

By Bryan Cohen | Jul 22, 2014

BUFFALO, N.Y. (Legal Newsline) - New York Attorney General Eric Schneiderman announced Monday that his office and the Federal Trade Commission have obtained a preliminary injunction against a debt collection operation that allegedly violated state and federal laws.

Schneiderman filed a lawsuit against three individuals, Joseph Bella, Luis Shaw and Diane Bella, and nine interrelated companies that allegedly engaged in illegal conduct related to debt collection.

The defendants bought and collected debts, most often debts originating from payday loans. They allegedly misrepresented that consumers committed check fraud or other unlawful acts related to the debt, and allegedly threatened consumers with lawsuits, arrest, imprisonment or seizure of assets unless the consumers paid the debt immediately.

The defendants also allegedly repeated the deceptive claims to consumers' friends, family members, coworkers and employees.

"All too often, innocent New Yorkers are relentlessly harassed by predatory, abusive debt collectors," Schneiderman said. "My office, along with partners like the Federal Trade Commission, will keep fighting to protect hardworking consumers and put a stop to unfair financial bullying once and for all."

Federal District Court Judge Richard Arcara issued a preliminary injunction that halts the debt operation, freezes the operation's assets and appoints a temporary receiver to take over the defendants' businesses.

Other defendants named in the lawsuit include eCapital LLC, Buffalo Staffing Inc., Mullins & Kane LLC, Morgan Jackson LLC, Goldberg Maxwell LLC, American Mutual Holdings Inc., Check Systems LLC and National Check Registry LLC.

Want to get notified whenever we write about New York Attorney General ?

Sign-up Next time we write about New York Attorney General, we'll email you a link to the story. You may edit your settings or unsubscribe at any time.

Organizations in this Story

New York Attorney General

More News