NY Attorney General Settles With Debt Collectors

NEW YORK (WENY)- Attorney General Eric Schneiderman has settled investigations against two debt collectors to stop pursuing default judgments too old to collect. The companies Portfolio Recovery Associates and Sherman Financial Group have been suing New York consumers for years and obtaining default judgments against people who didn't respond to the lawsuits even though claims were filed too late. Officials say that nearly three thousand improper judgments amounting to $16-million dollars will be vacated. Portfolio Recovery has agreed to pay $300,000 in penalties and Sherman Financial agreed to pay $175,000.