Unifund CCR Debt Settled

Our firm was recently retained by a consumer that received a summons and complaint from Unifund CCR LLC, a well-known debt buyer. Unifund retained Mullooly Jeffrey Rooney and Flynn, a debt collection law firm in New York and New Jersey to sue our client. Mullooly and Unifund always attempt to obtain a default judgment against consumers whether by means of improper service of the summons and complaint or because the consumer does not know how or when to answer the complaint. Once a default judgment is obtained, New York judgment interest of 9% accrues on the debt and Mullooly often can levy consumer’s bank accounts and garnish their wages. The judgment itself is also a major negative on a consumer’s credit leading to trouble obtaining financing for the near future.

To avoid all the negative repercussions of a default judgment, we submitted an answer with affirmative defenses within the 30-day period to answer. The answer alone keeps the burden on Unifund to prove that they are the rightful owner of the alleged debt and that the alleged amount owed has properly been accounted for. Debt buyers like Unifund often have a difficult time meeting this burden as these debts are bought and sold multiple times making it hard for them to show the proper chain-of-title from one debt buyer to the other. To avoid further litigation and the risk of losing at trial, Mullooly contacted us to settle the matter out of court. Our client was able to save over 70% off of the total balance of the debt.