NY AG Slams Debt Collector, Affiliated Attorney In Seperate Suits; Alleges Repeated Threatening & Obscene Phone Calls, Lawyer-Renting Racket

From the Office of the New York Attorney General:

• Attorney General Andrew M. Cuomo [] announced a lawsuit against several Western New York debt collection companies that violated the law by harassing consumers through repeated threatening and obscene phone calls as well as making illegal calls to the consumers’ employers and families. Attorney General Cuomo’s lawsuit claims Frank Santiago, of [...] Hamburg, who is the owner and operator of Northern Asset Management, LLC and Eastern Asset Management, LLC, had employees use abusive measures and lies in the debt collection operation.(1) The suit seeks to shut down the companies, bar Santiago from the collection business and require him to pay significant penalties, costs and fees to the state.

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• Earlier this month, in a related case, Cuomo sued Williamsville-based attorney John P. Nicolia after an investigation determined that he collected $141,000 in fees for allowing Santiago’s companies to threaten consumers across the country using Nicolia’s name. In reality, Nicolia never provided any actual legal services for the debt collection companies.

• Santiago’s collectors, after invoking Nicolia’s name, often falsely stated that the consumers had lawsuits filed against them, would have their driver’s licenses suspended, would be charged with a crime and/or would be imprisoned or lose their property if they didn’t pay.(2)

For the New York AG press release, see Attorney General Cuomo Sues Wny Debt Collection Companies That Harassed And Threatened Consumers Nationwide.

(1) According to the press release, the Attorney General’s investigation determined that Santiago tried to avoid detection from authorities by changing the name of his companies after consumer complaints mounted. Santiago operated a company called Ethical Asset Management from late 2006 through mid 2007. After complaints, Santiago closed Ethical Asset and opened Eastern Asset. After being sued dozens of times, Santiago shut down Eastern Asset in December 2009 and immediately began operating Northern Asset, which is still active.

(2) The press release adds the following information:

• The collectors also repeatedly harassed consumers and their relatives often at unconscionable times. One consumer claimed that he received calls as early as 6:50 in the morning from various phone numbers. Others claimed the company called 10-15 times a day to their home, cell phone, work and even to family members over an extended period of time. One consumer complained that the collectors called “constantly every 2 minutes, then when he couldn’t talk to me he called my 85-year-old neighbor and told her that this is a matter I can’t ignore and if I don’t contact them that they will be sending the police to my house.”
  
  Additionally, Santiago’s company regularly and illegally contacted consumers’ employers over the alleged debts. In one case, a collector continued to call and harass a consumer at work, leading to the consumer to lose a day’s pay because they were not allowed to take personal calls at work. Another collector called the employer of a consumer - on medical leave due to a high-risk pregnancy - and threatened to subpoena the employer at the workplace.