CACH LLC is a common debt-buyer that we run across in collection lawsuits as well as judgment enforcement matters. Debt buyers are creditors that buy debt from other debt-buyers such as Midland Credit Management or original creditors like Citibank. CACH LLC is most often represented by Kirschenbaum and Phillips a debt collection law firm that we litigate against frequently. CACH LLC lawsuits commonly become default judgments because of poor service of process or because consumers frequently move in New York. From our practice, we see 8 out of 10 lawsuits become default judgments which is frightening. Submitting an answer is the key to defending against CACH and preventing a default judgment. This keeps the burden on the plaintiff and Kirschenbaum and Phillips to prove their case. They specifically must show that they are the proper owner of the debt and that the amount they are suing for is correct. This can be a difficult task for a debt-buyer especially if the debt has been bought and sold numerous times as they will have to provide proof of a chain-of-assignment from one creditor to the next.
If a default judgment is obtained by CACH then an order to show cause to vacate the judgment must be filed as soon as possible to stay judgment enforcement activity such as a bank levy or wage garnishment by Kirschenbaum and Phillips. Vacating the judgment restarts the case and gives the consumer the ability to assert the above defenses. To vacate a judgment a consumer must generally show that they had a reasonable excuse for not answering or appearing originally and at least one meritorious defense. The motion must generally be filed within a year of learning about the judgment. Alternatively, a judgment can also be vacated based on a total lack of jurisdiction which usually means improper or impossible service. Vacating the judgment also creates the leverage necessary for negotiating and obtaining a favorable settlement agreement with CACH LLC. We are frequently able to negotiate with Kirschenbaum and Phillips to obtain reductions of 50%-75% off of the debt.