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Failure to Serve Debtors Violate the FDCPA

On Behalf of | Dec 18, 2013 | Consumer Protection

In a claim filed jointly by the Consumer
Financial Protection Bureau
(“CFPB”) and the Federal Trade
(“FTC”) both agencies agreed that collection firm,
Mel Harris & Associates, LLC et al (“Harris”), violated the
Fair Debt Collection Practices Act (“FDCPA”) when it allegedly
intentionally failed to properly serve collection lawsuits on
defendants by providing them with notice that they were being

In Monique Sykes et al., vs. Mel Harris & Associates, LLC et
al., the collection law firm, Harris, acting on behalf of a debt
buyer, hired a process server that allegedly purposely failed to
properly serve defendant debtors with court documents.  As a
result of the improper service, when the debtors failed to appear
in court, Harris and the debt buyer obtained default judgments
against the debtors allowing them to
the debtors’ wages and or property and to freeze the
debtors’ bank accounts in an effort to reach a

During the investigation, collection agents working for Harris
stated under oath that the process had been properly served upon
the debtors.  However as the investigation continues,
officials are discovering that this was not the case and
furthermore, because of alleged collusion between Harris and the
debt buyer, there are potential Racketeer Influenced and Corrupt
Organization Act (“RICO”) violations that have

In its response to the case now before the Second Circuit Court of
Appeals on
violations of the FDCPA
, both the CFPB and the FTC state that
the Defendants should be formally charged with violations of the
FDCPA for its conduct.

If you are involved in a collection lawsuit and believe you have
failed to receive proper notice of the suit, you may be a victim of
a violation of the FDCPA and you have rights.  Contact
SmithMarco P.C. to discuss your situation in great detail with a
licensed attorney for a free case