As often occurs, our client learned about a 2008 default judgment when his bank account was frozen by debt collection attorneys Pressler & Pressler in connection to a debt owned by First Resolution Investment Corporation, a common debt buyer. The current balance of the judgment was about $6,500, and there was a $500 levied in his bank account. Upon review of the court information, and discussions with our client, we learned that the client was never served with any court documents in this matter; he did not know what this debt was for; he never received any notice of assignment that a debt owed by him was assigned or sold to First Resolution; and he also never received any notice of a substitution of counsel from Pressler & Pressler which is required under the New York CPLR.
After careful review of the filed court documents, it became evident that First Resolution’s attorney during entry of the judgment was McNamee Titus Williams and Lochner, a separate debt collection law firm apart from Pressler & Pressler. Although Pressler & Pressler filed a consent to change attorney with the court, they had never notified our client of the change or sent him the document, which is required under New York law. With the use of these defenses, we were able to obtain a minimal settlement of $1,500 (77% savings for our client) along with the condition that the judgment be vacated against our client so that it would not negatively affect his credit report.