Cavalry SPV is one of the frequent debt-buyers that we encounter when defending consumers in collection matters, lawsuits, and default judgments. Cavalry buys debt for a fraction of the original balance, often from original creditors like Citibank. They then pursue consumers via collection which usually turns into litigation. Cavalry uses collection law firms in both New York and New Jersey, who primarily are : Tromberg Morris and Poulin, Mandarich and Associates, Apothaker Scian and Portnoy & Schneck when it pursues litigation. In many of these cases default judgments are obtained which can lead to bank levies, liens on real property, wage garnishments as well as additional judgment interest to accrue on the balance.
We were retained by a client who actually received a lawsuit from Cavalry SPV via their attorneys, Tromberg, Morris and Poulin. We quickly submitted an answer with defenses to prevent a default judgment. This also kept the burden to prove their case on Cavalry and on Tromberg. It is more difficult for a debt-buyer like Cavalry to prove that they are the rightful owner of the debt. They must show the bill of sale or purchase agreement from the original creditor as well as the transfer from creditor to creditor called the chain-of-title to show legal privity and standing. They also have to navigate around the hearsay requirements which are tricky for debt-buyers given that they must bring in a witness from Cavalry to testify to having personal knowledge of the debt being acquired among other information that must be provided. This is the best way to have a debt-buyer matter dismissed before it gets to trial or if it does get to trial. These defenses also provide leverage to obtain a favorable settlement. In this particular matter, we were able to settle with Tromberg Morris and Poulin, reducing the balance of the overall debt by 75% for the client. A fantastic debt settlement like this also eliminates the risk and additional legal fees associated with a lengthy litigation battle.