35 law firms sued by Cuomo over debt collectionPosted: Updated:
State Attorney General Andrew Cuomo struck back against aggressive debt collectors Thursday, filing lawsuits against 35 law firms and two debt collectors.
Cuomo says the firms and debt collectors failed to notify about 100,000 New Yorkers they owed debt.
The plot allegedly revolves around American Legal Process, a Long Island company, that was contracted to notify individuals they were being sued. ALP alleges it served the documents, but the lawsuit claims the company lied, leaving consumers unaware they faced any default until their bank accounts were frozen.
The attorney general's office says about $5,500 from each customer or more than half-a-billion dollars total was fraudulently seized by creditors.
To watch Cuomo's press conference about suing 35 law firms for failing to properly notify people about their debt, go to Channel 612 on you iO digital cable box and select iO Extra.