Friday, July 1, 2011

collection defense

Absent an account stated, it is difficult for the collection plaintiff, particularly a bad debt buyer, to prove anything is due. Debt buyers rarely possess the basic legal documentation required to make out a prima facie case. See, e.g., PRA III, LLC v. Gonzalez, 54 A.D.3d 917, 864 N.Y.S.2d 140 (2008); Palisades Collection Co. v. Velazquez, 27 Misc.3d 132(A), 910 N.Y.S.2d 406 (Sup.App. Term 2010) (text available in Westlaw); Portfolio Recovery Associates, LLC v. Ginn, 24 Misc.3d 137(A), 897 N.Y.S.2d 672 (Sup.App. Term 2009) (text available in Westlaw); Colorado Capital Investments, Inc. v. Villar, 241 N.Y.L.J. 116, 2009 N.Y.Misc. LEXIS 2693 (N.Y. City Civ. June 4, 2009); Rushmore Recoveries X, LLC v. Skolnick, 15 Misc.3d 1139(A), 841 N.Y.S.2d 823 (Nassau Cty.Dist. 2007) (text available in Westlaw); DNS Equity Group Inc. v. Lavallee, 26 Misc.3d 1228(A), 907 N.Y.S.2d 436 (Nassau Cty.Dist. 2010) (text available in Westlaw); Palisades Collection LLC v. Haque, 235 N.Y.L.J., No. 71, 20, col. 3 (N.Y. City Civ. Apr. 13, 2006); Palisades Collection, LLC v. Gonzalez, 10 Misc.3d 1058(A), 809 N.Y.S.2d 482 (N.Y. City Civ. 2005) (text available in Westlaw); Palisades Collection LLC v. Kalal, 324 Wis.2d 180, 781 N.W.2d 503 (App. 2010). This is acknowledged by the collection industry itself. James M. McNeile, Challenges for Collecting Purchased Debt, NARCA Newsl. (First Quarter 2003).

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