Stephen Einstein Takes Over Mel S. Harris Cases
Since the recent Sykes decision, Mel S. Harris a former New York debt collection
law firm folded and was bought or assumed by another very common New York
debt collection law firm named Stephen Einstein and Associates. LR credit
and Pinpoint Technologies were two of the most common debt buyer's
that Mel S. Harris represented. We now see that Stephen Einstein is representing
both almost exclusively. These debt buyers are known for suing consumers
on debt that has frequently been bought for pennies on the dollar and
has been transferred from one debt buyer to another. Most often, they
are known for obtaining default judgments against consumers which leads
to frozen bank accounts and wage garnishments.
After handling many of these cases we have seen consistent defenses that
can be used to defend against LR Credit and Pinpoint Technologies cases.
First and foremost, these companies are debt buyers and have a difficult
time proving that their debt has been properly assigned or sold to their
rightful owner. This burden is exacerbated by the fact that Stephen Einstein
acquired most of these files from Mel Harris while that firm was liquidating.
How much of the proof was actually transferred no one will actually know.
Second, we have seen that a substitution of counsel informing the court
and client that Stephen Einstein are the new debt collection law firm
retained by these debt buyers is almost never sent. Thus, under the NYCPLR
and the rules of evidence, Stephen Einstein should have a difficult time
proving their burden on these cases.