Providing Debt Relief for Clients Throughout the State of New York

CAVALRY SPV I DEBT LAWSUIT DISMISSED

Cavalry SPV I is a common creditor that buys debt from original creditors like Citibank and Chase Bank and then pursues consumers via collection and litigation. Cavalry is not one of the larger debt-buyers like LVNV Funding or Portfolio Recovery as they often buy debt from other debt-buyers or debt that has been bought and sold many times over. Cavalry is most often represented in New York by Shachter Portnoy and The Mandarich Law Firm. Mandarich seems to have bought or merged with Grossman & Karaszewski whom were previously representing Cavalry in these matters. Cavalry’s goal is to sue consumers in order to obtain a judgment which then allows them to accrue judgment interest at 9%, garnish wages, and freeze bank accounts of consumers. Often these judgments are obtained by default because service of the summons and complaint is so poor in New York.

Our client was sued by Cavalry SPV I for over $12,000. Cavalry was represented by The Mandarich Law Firm in this suit. We submitted an answer specifically asserting defenses attacking the standing of Cavalry to sue our client as well as challenging the assignment of the debt from one creditor to the next. Through the discovery process we learned that Cavalry did not have a proper chain-of-title or bill of sale for every creditor whom bought and sold this debt. We were able to have the matter dismissed entirely because Cavalry and Mandarich were not able to show privity which meant they had no standing to pursue our client for this debt.