We Defend You Against
Jefferson Capital Systems, LLC
The Langel firm will defend consumers against New York state court collection lawsuits brought by Jefferson Capital Systems, LLC. In appropriate cases, we may investigate claims against Jefferson Capital Systems, LLC for violations of the Fair Debt Collection Practices Act, Fair Credit Reporting Act, and other applicable laws.
As of July 2013, Jefferson Capital Systems, LLC has filed at least 307 cases in Queens County alone. Jefferson Capital Systems, LLC is mainly represented by Kirschenbaum, Phillips & Roach, P.C., Forster & Garbus, LLP, and Mel S. Harris & Associates, LLC.
Jefferson Capital Systems, LLC purchases defaulted consumer debt to collect and sue on them.
Court Finds an Assignment from Jefferson Capital Systems, LLC to be Valid, but Plaintiff Ultimately Fails to Establish Entire Chain of Assignment
In Midland Funding LLC v. Wallace (N.Y. City Ct. Mt. Vernon 2012), the court found that an Assignment of Accounts from Jefferson Capital Systems, LLC to Midland Funding LLC was the only valid assignment in an underlying matter concerning a default judgment against a consumer.
To support its contention that the judgment against the consumer was valid, plaintiff's counsel produced an Assignment of Accounts from Jefferson Capital to Midland. A sworn statement from the Manager of Portfolio Sales for Jefferson Capital was also produced. In his statement, the Manager of Portfolio Sales swore that CompuCredit Corporation is the parent corporation of Jefferson Capital and that CompuCredit "acquire[s] certain credit card accounts […and…] that after the accounts are charged off by CompuCredit the accounts are transferred and assigned to Jefferson Capital." It was also sworn that Jefferson Capital subsequently sold many accounts to Midland Funding, pursuant to the Assignment of Accounts.
In the underlying matter, the court found that plaintiff's counsel was "unable to present admissible evidence of the entire chain of assignment" of the debt. An assignment from the original creditor (with whom the consumer allegedly entered into the credit card agreement) to CompuCredit Corporation was missing, as was the alleged assignment from CompuCredit Corporation to Jefferson Capital. The only valid assignment in support of the judgment against the consumer was the assignment from Jefferson Capital to Midland.
The Court found that the failure of plaintiff's counsel to "obtain the requisite documentary proof of the claim alleged, including the entire chain of assignment(s) either prior to commencing the instant action or to obtaining a default judgment against [the consumer] constitutes frivolous conduct." The Court thus imposed a monetary sanction against the law firm representing the plaintiff.
Flexpoint Ford, LLC Announces its Acquisition of Jefferson Capital Systems, LLC, and Anticipates Growth
On August 3, 2012, Flexpoint Ford, LLC, a private equity firm, announced that it acquired Jefferson Capital from CompuCredit Holdings Corporation. (http://www.jeffersoncapitalinternational.com/us/about-jefferson-capital/news/jefferson-capital-systems-aquired-by-flexpoint-ford.html)
President and CEO of Jefferson Capital, David Burton, stated that "the acquisition by Flexpoint Ford provides incremental growth capital allowing [Jefferson Capital] to better serve [its] existing clients and expand [its] services to new market segments."
Vice President of Flexpoint Ford, Michael Tyree, added that "Jefferson Capital's diversified business lines allow them to stay nimble and opportunistic in their purchases. [Jefferson Capital's] attractive returns on capital, along with the new financing facility and strong management team, should enable the Company to create significant value."
CompuCredit Holdings Corporation sold Jefferson Capital to Flexpoint Ford for $130.5 million. (http://www.jeffersoncapitalinternational.com/us/about-jefferson-capital/news/compucredit-sells-jefferson-capital-for-130-5-million.html)
Jefferson Capital Systems, LLC Biographical Information
Jefferson Capital Systems, LLC is a foreign limited liability company incorporated in Georgia and is principally located at 16 McLeland Road, St. Cloud, Minnesota, 56303.