The debt collection industry in the United States is $1 trillion industry. Over the years many collection companies have come and gone. Many of these companies employ unlawful and illegal tactics in order to coerce thousand dollars from consumers who don’t have the resources to fight back. One of these companies was known as LR Credit. LR Credit went out of business a long time ago however the effects of its questionable practices still send shockwaves throughout the legal system today.
LR Credit was a debt collection company that was sued multiple times in federal courts for violating the federal Fair Debt Collection Practices Act. One of the most common practices was to employ sneaky tactics to get judgments against consumers without their knowledge or notice. Once this happened LR Credit would then skip to the bank and freeze the consumer’s bank accounts and garnish their paychecks.
LR Credit was sued so many times that they were finally forced to go out of business. So they obviously are no longer in operation however they continue to haunt consumers to this day. In states like New York, judgments are legally enforceable for 20 years. That means even when they drop off a credit report, a creditor can still potentially freeze a bank account or garnish a paycheck or safe deposit box 20 year at after the judgment was entered.
This may not affect your ability to qualify for a credit card or finance a car. However, if you are applying for a mortgage, 99% of residential mortgage banks will check your credit report, and also culminate a title report. The title report will scour the court records to find out if there are any jet open judgments against you. Thus you can see how a default judgment from a defunct company can still create a problem for many people.
The Law Office of Abel Pierre PC has been successful many times in convincing the judges of the civil court to vacate these judgments like they never occurred to begin with. Although we can never predict will happen with each individual case, in some of these cases we convince the judge to dismiss them altogether.
If you have a judgment that is causing trouble either from LR Credit or any other debt collection company please give us a call or send us an email today. We will assess your case for free and create a strategy for vacating the judgment.