Department of Financial Services charges debt collector for unlawful pursuing debts

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NEW YORK (WWTI) — The New York Department of Financial Services has filed a statement of charges against a debt collector.

DFS announced on September 16 that the debt collector Forster and Garbus LLP is being charges with the unlawful treatment of customers. These charges follows DFS’ claims that Forster and Garbus did not fulfill requests by consumers for substantiation of debt.

According to the DFS, New York State laws requires substantiation fulfilled within 60 days of any request.  

The company collects student loan debt for some of the largest lenders and service nationwide.

“Consumer protection is the center of everything we do at DFS,” said Superintendent of Financial Services Linda A. Lacewell. “It is especially important for New Yorkers to have access to appropriate and accurate financial information during this stressful time – so they can protect their rights and make financial decisions in their own best interest.”

DFS charges to Forest and Garbus LLP are the first to allege violation of New York State’s Debt Collection Regulation, Part 1 of Title 23 of the New York Codes, Rule and Regulations.

Through failing to comply with law a hearing will be held at the office of the New York State Department of Financial Services, One State Street, New York, New York, beginning on January 12, 2021. 

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