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Credigy Receivables, Inc.

The Langel firm defends consumers against New York state court collection lawsuits brought by Credigy Receivables, Inc. In appropriate cases, we will also sue Credigy Receivables, Inc. for violations of the Fair Debt Collection Practices Act, Fair Credit Reporting Act, and other applicable laws.

As of February 2013, Credigy Receivables, Inc. has filed at least 2,253 cases in Kings County alone. Credigy Receivables, Inc. is mainly represented by Stephen Einstein & Associates, P.C., Smith, Carroad, Levy & Frankel, LLP, Sharinn & Lipshie, P.C., and Forster & Garbus, LLP.

District Court Denies Credigy Receivables, Inc.'s Motion to Dismiss Based on Issues Concerning the Applicable Statute of Limitations

In Rawson v. Credigy Receivables, Inc. (N.D. Ill. 2006), the court denied Credigy Receivables, Inc.'s motion to dismiss, which turned on the applicable statute of limitations.

The plaintiff consumer in this case brought a two-count class complaint, alleging that Credigy Receivables violated the Fair Debt Collection Practices Act for threatening to sue on a time-barred credit card debt. Illinois law provides that actions on written contracts must be commenced within ten years of the cause of action, while actions based on unwritten contracts must be commenced within five years. In Illinois, contracts are considered written only if "all the essential terms of the contract are in writing and are ascertainable from the instrument itself."

Here, the plaintiff consumer alleged there was no written contract, and thus the five-year statute of limitations applied. Credigy Receivables asserted that the credit card debt was governed by the ten-year statute of limitations, but failed to submit a written contract to support their motion to dismiss. Because the court could not find "beyond a doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief," Credigy Receivables' motion to dismiss was denied.

Credigy Receivables, Inc. Pursues Suit against a Victim of Identity Theft, Resulting in Court-Ordered Award of Attorneys' Fees to Victim

Credigy Receivables, Inc. appealed a trial court order, which awarded $26,101.75 in attorneys' fees to a victim of identity theft who was defending herself against Credigy's efforts to enforce a debt against her, in Credigy Receivables, Inc. v. Whittington (N.C. Ct. App. 2010). The court affirmed the trial court's award of attorneys' fees to the victim.

In 2008, Credigy Receivables purchased and became the assignee of a judgment against a consumer named "Blanche Whittington." However, the real Ms. Wittington did not incur the debt underlying the judgment: she was the victim of identity theft. The real Ms. Whittington retained counsel, and Credigy Receivables' counsel was immediately notified of the error. Ms. Whittington's counsel moved for relief from the judgment and requested attorneys' fees, which the trial court granted.

Credigy Receivables argued that attorneys' fees were unjustified in this case because the default judgment was presumptively valid and presented a justiciable issue as to Ms. Whittington's identity and indebtedness, and because Credigy suspended enforcement efforts once it received evidence that Ms. Whittington was not liable. The Court of Appeals, however, found that Credigy never had the right to enforce its purchased judgment against Ms. Whittington because its assignor never had a true claim against Ms. Whittington for the underlying debt.

In North Carolina, attorneys' fees may be awarded by the trial court where the court finds that there is a "complete absence of a justiciable issue of law or fact raised by the losing party." The court found that Credigy lacked standing to bring suit against Ms. Whittington because it never suffered an injury in fact – there was no legally protected contractual interest as to the real Ms. Whittington. The court further found that Credigy should have recognized that the pleadings failed to "present a colorable claim that Ms. Whittington was the debtor." Because Credigy should have been aware that it was pursuing a non-justiciable claim, attorneys' fees were properly granted.

Credigy Receivables, Inc. Biographical Information

Credigy Receivables, Inc. is a foreign business corporation incorporated in Nevada and is principally located at 3950 Johns Creek Court, Suite 100, Suwanee, Georgia, 30024. It is licensed (#1325842) by the Department of Consumer Affairs to collect debts in the City of New York.