We were recently retained by a consumer to help with an Erin Capital Management
default judgment against her. Erin Capital Management is a common debt
buyer that buys debt from original creditors such as Citibank and Chase
for pennies on the dollar. Often, the debt they acquire is bought from
other debt buyers that buy it from the original creditors. This leads
to multiple levels of assignment from one company to another which then
requires Erin Capital or any holder of the debt to prove that they have
the proper standing to sue a consumer as the proper owner of the debt.
Simply put, they must show that they are the rightful owner of the debt
having acquired it properly through the assignment of debt. Erin Capital
frequently retains the debt collection law firm of Eltman Law to pursue
debt collection cases in New York and New Jersey. Eltman's goal is
to sue the consumer and obtain a default judgment so that they win quickly
and easily without the consumer having the ability to defend themselves
on the merits of the case. Unfortunately, this scenario happens most often
due to improper service of the summons and complaint.
In this matter. Eltman Law sued our client and was able to obtain a default
judgment because she was never served at her correct address. The judgment
against her was obtained six years ago although she had no knowledge of
it and New York judgment interest was accruing against this debt at 9%
and the debt had ballooned to over $15,000. Our client only found out
about the judgment and debt because she received a wage garnishment notice
from her job stating that the debt would be taken out of her pay weekly
with interest accruing in the meantime. We contacted Eltman Law immediately
and served them with an order to show cause which we had filed with the
court asking for the judgment against our client to be vacated as she
had just discovered it against her because of the pending wage garnishment.
Eltman agreed to vacate the judgment and offered a low settlement to dispose
of the matter for under $5,000 to avoid litigation fees.
Interestingly enough, Eltman Law also notified us that most of their portfolio
of Erin Capital Management cases were now being transferred over to the
debt collection law firm of Houslanger & Associates, a firm that we
defend against quite often. We are sure that we will start seeing Houslanger
pursuing many bank levy’s and wage garnishments on behalf of Erin
Capital in the near future.