pholland

Maryland Void Judgments May Be Attacked at Any Time, at Any Place, and in Any Proceeding

September 20, 2014

“[A] void judgment…is open to attack [ ] in any proceeding, direct or collateral, and at any time or place….”

Finch v. LVNV, 212 Md. App. 748, 768 (2013).

In Maryland, the law is clearly established that a debt collector must be licensed to collect debt in Maryland, either by letter and phone calls, or by filing lawsuits.  The question arose as to whether judgments obtained by unlicensed debt collectors (many of whom later went on to obtain a license) are valid.  The court in Finch stated loudly and clearly that judgments obtained in Maryland by unlicensed debt collectors are void.Read More »Maryland Void Judgments May Be Attacked at Any Time, at Any Place, and in Any Proceeding

Can a Judgment Holder Assign a Judgment Several Years After the Corporation Was Dissolved?

September 20, 2014

In Maryland, a judgment is valid for 12 years, and may be renewed at any point within those twelve years.  In Maryland right now, there has been a rash of new debt buyers garnishing people’s wages by claiming to be the assignee of judgments that are as old as 10 years, and which were obtained by prior debt buyers which have long since filed articles of corporate dissolution. [1] In several active cases, the original judgment creditor was Platinum Financial Services Corporation (which filed Articles of Dissolution with the State of Maryland on March 25, 2009), and the new purported Assignee is Palisades Acquisitions XVI, LLC.  The validity of those assignments depends on whether a corporation that has been dissolved can legally later assign judgments 3, 4, 5 or more years after the corporation filed its articles of dissolution.Read More »Can a Judgment Holder Assign a Judgment Several Years After the Corporation Was Dissolved?

Is Your Private Student Loan A Contract Under Seal?

September 20, 2014

In many private student loan cases in Maryland (as well as in other cases), the collection lawyer will argue that the statute of limitations is 12 years instead of 3 years.  The reason, they argue, is that many private student loan contracts are “contracts under seal.”  Lately I have seen a spate of private student loan contracts where the word “SEAL” does not appear anywhere on or near the signature line, and despite this absence, collection lawyers argue that it is still a contract under seal.  Maryland law seems clear that absent the word “SEAL” next to or near the signature, there is not a “contract under seal” and thus there is not a 12 year statute of limitations.Read More »Is Your Private Student Loan A Contract Under Seal?

“Bad Paper” by Jake Halpern featured in New York Times Magazine Cover Story

Bad Paper: Chasing Debt From Wall Street to the Underworld by Jake Halpern

The New York Times Magazine has just published a cover story adapted from Jake Halpern’s phenomenal upcoming book, Bad Paper.  You can read the entire article here.  Because I can’t possibly capture Halpern’s outstanding writing style or story telling abilities, I offer the following excerpts article.  In my opinion, Halpern’s book demonstrates that, despite what the industry contends, there is still plenty of actual ongoing systemic fraud and abuse.Read More »“Bad Paper” by Jake Halpern featured in New York Times Magazine Cover Story