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Court Injunction Halts Buffalo Debt Collectors

WAMC Photo by Dave Lucas

A federal judge has ordered Buffalo-based debt collectors to stop telling borrowers they face prison for check fraud and making other false threats. 

The injunction, sought by New York Attorney General Eric Schneiderman and the Federal Trade Commission, freezes assets of the collection operation and gives temporary control to a court-appointed receiver.

The defendants agreed to the injunction without admitting wrongdoing.

The lawsuit accuses Joseph C. Bella III and Luis Shaw, both of Buffalo, Florida resident Diane Bella, and nine interrelated companies of buying debt mostly from payday loans since 2010 and misrepresenting that borrowers committed crimes and face dire consequences if they don't promptly pay.

Attorney Dennis Vacco, representing the companies, says the ruling essentially updates an earlier court order while removing two affiliates not involved in collections from control of the receiver, who shut down the businesses.

Copyright 2014 The Associated Press.

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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