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This settlement is closed!
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A New York debt-buying company, law firm and process server have agreed to pay $54.5 million in order to settle allegations that they conspired in a fraudulent debt collection default judgement scheme in violation of state and federal laws.
Lead plaintiff Monique Sykes, along with three other plaintiffs, filed the debt collection class action lawsuit against Mel S. Harris & Associates, Leucadia National Corp., and Samserv, Inc. over claims that the companies violated the Fair Debt Collection Practices Act (FDCPA) as well as the Racketeer Influenced and Corrupt Organizations Act (RICO), along with New York state laws.
According to the debt collection class action lawsuit, the three companies regularly engaged in “sewer service” where Samserv would fail to serve a summons and complaint seeking payments on debt that Mel S. Harris & Associates and Leucadia purchased, even though they alleged still submitted proof of service to the court.
Once a debtor failed to appear in court, because of the lack of notice, Sykes claims that Leucadia and Mel Harris would then apply for a default judgement, attesting to their personal knowledge regarding the debt owed.
The FDCPA class action lawsuit claims that then the defendants would garnish wages, seize property, damage credit, restrain bank accounts and pressure the low-income Class Members into unaffordable payment plans.
According to the debt collection class action settlement, there are an estimated 355,000 potential Class Members who were affected by the debt collection scheme. Under the terms of the settlement, Leucadia will pay $46 million, Mel S. Harris will pay $7.9 million, and Samserv will pay $517,500.
UPDATE: On June 29, 2016, the settlement website was updated with the following: “The deadline to file appeals has passed, and no one appealed. We plan to mail checks in late July.” Top Class Actions will continue to provide updates as we learn more. Keep checking back and let us know when you receive a check in the comments section below or on our Facebook page.
UPDATE 2: On July 30, 2016, the settlement website was updated stating that checks will be mailed in early August.
UPDATE 3: Per the settlement website, the Settlement Administrator began mailing checks on August 5, 2016. Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.
UPDATE 4: On Aug. 8, 2016, Top Class Actions readers started receiving checks worth as much as $4,900 from this debt collection class action settlement.
Who’s Eligible
The debt collection FDCPA class action lawsuit settlement is open to two Settlement Classes:
- Injunctive Settlement Class Members – includes all individuals who were or could have been sued in any New York court by Mel S. Harris & Associates, LLC (or by any other counsel as directed by Mel S. Harris & Associates, LLC), as counsel for LR Credit. Every Class Member whose alleged debt is or was owned by LR Credit is part of the Settlement Injunctive Class, no matter whether he or she ever made a payment to LR Credit (or any of its subsidiaries).
- Money Settlement Class Members includes every person sued in any New York court by Mel S. Harris & Associates, LLC, as counsel for LR Credit (or by any other counsel as directed by Mel S. Harris & Associates, LLC), and against whom a default judgment was obtained.
All Class Members who are a part of the Money Settlement Class are also Members of the Injunctive Settlement Class.
Members of either Settlement Class who paid money to the defendants or whose judgment was sold to a third party may be entitled to a portion of the Money Settlement if they submit a valid Claim Form.
If you are unsure whether or not you qualify as a Class Member, contact the Claims Administrator at (877) 868-0034.
Potential Award
at least $100.
Every Class Member who paid money to one of the named debt collectors or whose account was sold, will receive at least $100 if they submit a Claim Form. Depending on the number of Claim Forms submitted, Class Members may receive more than $100.
Proof of Purchase
N/A.
Class Members of either Settlement Class who paid money to defendants or whose judgment was sold to a third party may be entitled to a portion of the Money Settlement if they submit a valid Claim Form.
Claim Form
Claim Form Deadline
04/07/2016
Case Name
Monique Sykes, et al. v. Mel S. Harris and Associates LLC, et al., Case No. 1:09-cv-08486-DC in the U.S. District Court for the Southern District of New York
Final Hearing
05/11/2016
Settlement Website
www.SykesClassAction.com
Claims Administrator
Sykes Class Action Settlement
PO Box 3145
Portland, OR 97208-3145
877-868-0034
questions@sykesclassaction.com
Class Counsel
Matthew D. Brinckerhoff
Jonathan S. Abady
Vasudha Talla
Debra L. Greenberger
EMERY CELLI BRINCKERHOFF & ABADY LLP
Josh Zinner
Susan Shin
Claudia Wilner
NEW ECONOMY PROJECT
Carolyn E. Coffey
Ariana Lindermayer
Jeanette Zelhof
MFY LEGAL SERVICES INC.
Defense Counsel
Paul D. Clement
Candice Chiu
BANCROFT PLLC
James R. Asperger
Maria Ginzburg
Marc A. Becker
QUINN EMANUEL URQUHART & SULLIVAN LLP
Brett A. Scher
KAUFMAN DOLOWICH & VOLUCK LLP
Miguel A. Estrada
Scott P. Martin
GIBSON DUNN
Ralph C. Ferrara
Mark D. Harris
PROSKAUER ROSE LLP
Michael D. Zimmerman
ZIMMERMAN JONES & BOOHER LLC
Lewis H. Goldfarb
Adam R. Schwartz
McELROY DEUTSCH MULVANEY & CARPENTER LLP
Jack Babchik
BABCHIK & YOUNG LLP
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189 thoughts onN.Y. Debt Collection Agencies FDCPA Class Action Settlement
July 27 and nothing here yet. Anyone else have luck?
I called back today and they said by the first week of august we should have something in the mail
Everytime I call I feel like they are just reading off script and they don’t know what they are talking about
nothing yet matthew
Just got todays mail and again nothing.
I’m still waiting I hope everything comes out ok
How much should we be expecting with these check? Is it what we paid to the collection agency.
It could be at least $100. or the amount paid. Fingers crossed cause I paid a few thousand. After I paid they came after me for the $ again! Corrupt…
Still waiting… has anyone else received a check yet?
bani nope nothing yet when i leave out for work tonight i will check
Have any one called to see about anything with the checks?
Nope haven’t gotten any thing yet in the mail. They claim by Monday it should go out but I’m saying we on the 26th of July what is mid to them. 30 days and they still haven’t gotten it straight
I got the check in the mail but I’m scare to cash it.
Hope that is true on the mailing out today
They told me that they started mailing out checks today. I called to make sure I was included in the settlement, I did mail claim form well before due date but my luck it got lost in the mail. He didnt have a list to check for my name but assured me if I mail claim form I should receive a check
we all can sure use that money I hope so that they mailed it out already
Mailing from portland. Just called still dont know when all they say buy late july
No idea going to call again today
Do you know where they are mailing the check from?