Putting a Stop to Fraudulent Process Service
Garodnick Announces Industry Reforms
Imagine being sued and never even knowing it. It's a frightening reality with devastating results for thousands of New Yorkers, which is why I recently announced legislation to protect consumers from fraudulent process service.
Each year, debt collectors suing in New York City Civil Court collect $800 million in judgments. In 80 to 90 percent of those cases, New Yorkers never realize that they have been sued -- frequently because the process servers hired by the debt collection law firm never deliver their court papers. The result is a default judgment, which can be used to freeze a bank account and garnish wages, and which ruins a person's credit.
My bill would rein in process servers by requiring that they, and the agencies they work for, provide the City a surety bond, or insurance, in order to be licensed to do business in New York City. Everyone is responsible for repaying their debts, but our neighbors deserve a chance to defend themselves in court from debt claims, which are often frivolous. It doesn't help anyone for our neighbors to be put into financial purgatory over debts they never actually incurred.
The Consumer Affairs Committee of the City Council will hold a hearing on my bill this Friday, November 13, at 10:00 a.m. in the City Council Chambers. All members of the public are welcome to testify.