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NY Settles Probes Of 2 Debt Collectors

Wiki Commons

The New York attorney general has settled investigations of two debt collectors with civil penalties and agreements they stop pursuing default judgments on claims that are legally too old to collect.

New York's statute of limitations to collect is generally six years.

Authorities say nearly 3,000 improper judgments for about $16 million will be vacated.

According to Attorney General Eric Schneiderman, Portfolio Recovery Associates and Sherman Financial Group for years have sued New York consumers and obtained default judgments against people who didn't respond to the lawsuits even though claims were filed too late.

The companies buy unpaid consumer debt, largely from credit cards, often at deep discounts.

Without admitting the allegations, Portfolio Recovery has agreed to pay $300,000 in penalties and costs, while Sherman Financial agreed to pay $175,000.

© 2014 AP

Dave Lucas is WAMC’s Capital Region Bureau Chief. Born and raised in Albany, he’s been involved in nearly every aspect of local radio since 1981. Before joining WAMC, Dave was a reporter and anchor at WGY in Schenectady. Prior to that he hosted talk shows on WYJB and WROW, including the 1999 series of overnight radio broadcasts tracking the JonBenet Ramsey murder case with a cast of callers and characters from all over the world via the internet. In 2012, Dave received a Communicator Award of Distinction for his WAMC news story "Fail: The NYS Flood Panel," which explores whether the damage from Hurricane Irene and Tropical Storm Lee could have been prevented or at least curbed. Dave began his radio career as a “morning personality” at WABY in Albany.
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