FORSTER & GARBUS DEBT COLLECTION

Forster and Garbus is very likely the biggest and most well-known debt collection law firm in New York. They practice in New Jersey as well although their presence there is not quite as large. Forster and Garbus sue mostly consumers regarding credit cards, student loans, medical debt and auto-repo debt. Their goal is to sue the consumer and win their case on default so that they obtain an automatic default judgment without having to litigate the matter on the substantive merits in court. It is an easy, efficient and cheap way of winning. They are able to do so against more than the 95% of consumers that we represent for a few main reasons. First, people in New York move around quite a bit so it is very common for them to serve an old address where the consumer does not reside at anymore. Second, the service industry is awful at best in our opinion. Most consumers we speak with state that they were never served with a summons and complaint. This is nothing new, sewer service has been rampant in New York for the last few decades in consumer debt matters. Many of these service processors have been sanctioned by the city and state of New York and many of these service companies have been sued and driven out of business. Unfortunately this phenomenon still exists and thrives in New York.

Once Forster and Garbus is able to obtain a judgment, they can then proceed on enforcing the judgment by way of bank levy, wage garnishment and even by placing liens on a consumers residence. The judgment also has severe negative repercussions on the consumer's credit report, potentially also hindering the purchase or sale of any property. Judgment interest accrues in New York at 9% so Forster and Garbus will usually be able to collect on much more than the alleged original balance. Many big-name creditors and debt buyers are represented by Forster and Garbus such as National Collegiate Trust, Navient, and Jefferson Capital Systems whom are all associated with student loans. Big debt-buyers like Midland Funding and Portfolio Recovery Associates use them and so do original creditors such as Capital One and Discover. It is important to try to prevent Forster and Garbus from trying to obtain a default judgment by submitting an answer with defenses as it keeps the burden of proof on them. In judgment cases, an order to show cause must be filed in New York courts to vacate the judgment by showing proof that the consumer either was not served at all or that they have a reasonable excuse for not answering as well as at least one meritorious defense. This re-opens the case and gives the consumer the ability to either litigate the case on the merits or to settle the case while they have the leverage on their side.