Debt Collector Now Wants to Settle
On the heels of a CBS News investigation, a lawyer for a debt collector says he's ready to settle an outstanding lawsuit.
It all started after consumer attorney Amir Goldstein told CBS News that he often struggles to locate debt collectors in places like Buffalo.
"The companies close up shop. Disappears. Nobody answers the phone anymore. Then they re-open under another corporate name," Goldstein told CBS News.
Goldstein decided to pursue the owners of Southern Capital, a debt collection company in Buffalo that kept wiggling out of lawsuits by claiming they had shut down. In short, he wanted to go after the people behind the corporate name.
See the original debt collector story here
CBS knocked on the door of the last known address of debt collector Southern Capital, only to find it had been replaced by another collections company that claimed to be unconnected. We were told Southern Capital's owners had a new name and location.
But before we even arrived at the new location, the owner called CBS saying he left the collection business over a year ago. "I had to shut down," David Dwyer told CBS, "I was buried in lawsuits."
But when we arrived at the address, we saw an employee on her way out the door. At first she claimed not to know David Dwyer but minutes later, offered to call him on her cell phone.
Dwyer called us back, claiming this new location had also shut down and was no longer in business. But CBS News learned the business was still in operation and had opened yet another new office in nearby Williamsville, NY. As for Dwyer's claims that he was out of the business? His name is on the most recent filings with the Secretary of State in two other states.
Amir Goldstein says the lawyer for Southern Capital called him after our story aired wanting to settle. Will he make a deal? "I told him I will think about it," he said.
Copyright 2009 CBS. All rights reserved. It all started after consumer attorney Amir Goldstein told CBS News that he often struggles to locate debt collectors in places like Buffalo.
"The companies close up shop. Disappears. Nobody answers the phone anymore. Then they re-open under another corporate name," Goldstein told CBS News.
Goldstein decided to pursue the owners of Southern Capital, a debt collection company in Buffalo that kept wiggling out of lawsuits by claiming they had shut down. In short, he wanted to go after the people behind the corporate name.
See the original debt collector story here
CBS knocked on the door of the last known address of debt collector Southern Capital, only to find it had been replaced by another collections company that claimed to be unconnected. We were told Southern Capital's owners had a new name and location.
But before we even arrived at the new location, the owner called CBS saying he left the collection business over a year ago. "I had to shut down," David Dwyer told CBS, "I was buried in lawsuits."
But when we arrived at the address, we saw an employee on her way out the door. At first she claimed not to know David Dwyer but minutes later, offered to call him on her cell phone.
Dwyer called us back, claiming this new location had also shut down and was no longer in business. But CBS News learned the business was still in operation and had opened yet another new office in nearby Williamsville, NY. As for Dwyer's claims that he was out of the business? His name is on the most recent filings with the Secretary of State in two other states.
Amir Goldstein says the lawyer for Southern Capital called him after our story aired wanting to settle. Will he make a deal? "I told him I will think about it," he said.
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- Here are some thoughts (not advice, I do not have a law license) about dealing with debt collectors in New York State possibly having some similarities to your state of residence. My dad was a prominent criminal and divorce attorney, his firm located at the corner of 57 Street and Park Avenue, he died more than 20 years ago. He personally trained me in the law since I was a child and although not accepted in a formal sense, I have always appeared pro se in civil suits of small amounts and either won them all myself or settled them in my favor. I also worked through university for a SEC firm on Park Avenue (you always are compelled to mention Park Avenue)and in addition I was a Licensed Salesperson and a New York State Real Estate Broker for about 20 years. I am not looking for a job but I am illustrating my credentials to show you how to deal with debt collectors and prevail. First realize that they have not one bit of jurisdiction over you but can affect your credit rating. The minute you get the first contact, if you feel it is not valid you must immediately file a written dispute with the originator. In New York State, once you accomplish this collectors must hold off for thirty days. when they continue you had better shut off all the phone ringers until you are together in the AM, they have a time constraint to call but 8am I believe it begins. Actually field the first call and really give the guy an earful of other matters aside from the debt and do not raise your voice. Keep distracting him with your comments about politics, TV, going to the beach, movies, music but do not hang up. Make him hang up so that you can say that it was he who cut you off. Do this with two more guys and then you may be able to knock down the demand. If you have my law background, agree to arbitration and tell them you are appearing pro se. This will be far too expensive for them because a corporation must be represented by council which will cost them more than your debt. Keep going until they settle for 50%.
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