Share on Facebook
Share on Twitter
Share on LinkedIn

Tens of thousands of New Yorkers who had their wages garnished or bank accounts frozen in a surreptitious debt-collection scheme will receive $59 million in a class-action settlement that also bars a major network of collectors from continuing the practice.

The settlement, which was filed late on Thursday in Federal District Court in Manhattan, deals a significant blow to an industry that in recent years fed off a recessionary rise in consumer debt actions as companies bought up charged-off debt at low rates and then sought to recover the full debt for themselves.

Read More