Debt Collector Pays To Use Lawyer's Name

New York Attorney General Andrew Cuomo has sued a New York lawyer, charging that the lawyer sold a debt collection agency the use of his name, which the collection agency then used to threaten bogus legal action against consumers throughout the United States.

Cuomo’s office sued Williamsville, N.Y., lawyer John P. Nicolia, charging that Nicolia collected $141,000 in fees for allowing the debt collection company, Eastern Asset Management, to use his name to threaten consumers. Nicolia, however, never did any legal work for the company, according to the allegations.

“The lawsuit alleges that this attorney knowingly allowed a debt collection firm to use his name to threaten, intimidate, and harass consumers, while he sat back and profited without having to do any actual work,” Cuomo said in a news release. “Our investigation into illegal debt collection practices has uncovered layer upon layer of abusive acts, and we will continue to root out the bad players in this industry.”

Cuomo’s office said Eastern Asset Management, after using Nicolia’s name, falsely stated that consumers could be charged with crimes, be imprisoned, lose their property, or have their driver’s license suspended if they did not pay the purported debt.

Since May 2009, Cuomo’s office has shut down 14 debt collection and process-serving companies and required others to reform deceptive practices, according to the Cuomo news release. Lawsuits against several other collection companies are pending.

Debt collection companies are developing new practices in efforts to collect legitimate debts, and are increasingly pursuing people for supposed “debts” that are not theirs. IdentityTheft911.org reported on some of the practices in its most recent newsletter.