(Crain’s) — Buyers of uncollected debt routinely violate state law by filing meritless lawsuits against low-income New Yorkers, often without presenting any proof of their claims and without notifying individuals that they are being sued, a new report by four nonprofit organizations alleges.
The debt buyers typically obtain automatic default judgments in their favor because the people they sue are unaware of the cases and do not show up for their court hearings, the report by the Legal Aid Society, MFY Legal Services, the Neighborhood Economic Development Advocacy Project and the Urban Justice Center charges.
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