New York Attorney General Letitia James has announced the successful resolution of a case against debt collection law firm Tromberg, Morris, & Poulin, LLC (TMP), and its subsidiary, Stephen Einstein & Associates, P.C. (SEA). The law firms are set to pay over $650,000 for engaging in the filing of frivolous lawsuits that adversely affected vulnerable New Yorkers.
Following an investigation, the Office of the Attorney General (OAG) found that TMP and SEA had a history of suing tenants in New York City Civil Court over issues already settled in Housing Court, resulting in unnecessary legal and financial burdens for the affected individuals.
Additionally, the OAG discovered that TMP unlawfully persisted in pursuing debts that had already been settled or partially paid, at times resorting to wage garnishment for completed judgments. In response to these findings, TMP has agreed to a settlement that includes restitution payments totaling $595,600 to over 4,000 impacted New Yorkers, $60,000 in penalties, and a commitment to cease their frivolous and predatory practices.
Attorney General James emphasized the moral, legal, and ethical concerns surrounding the exploitation of vulnerable individuals through frivolous lawsuits. She condemned the use of legal expertise to harm others and stressed the importance of preventing such abuse within the justice system.
TMP and SEA, both law firms representing creditors, faced an investigation by the OAG due to reports of mishandled lawsuits against consumers. The investigation revealed a lack of review of prior court history before filing lawsuits, resulting in tenants being sued in Civil Court for matters already resolved in Housing Court. The OAG identified at least 374 cases of unpaid rent filed by TMP and its subsidiary since 2017 without proper consideration of prior litigation, compelling New Yorkers to reappear in court for resolved cases.
Further, the law firms were found to pursue consumer debts that were already satisfied or partially paid, maintaining meritless cases on the docket to pressure consumers into settlements. As part of the settlement agreement, TMP will pay restitution to eligible consumers, undertake a review of unpaid rent lawsuits from the past six years, and implement reforms to prevent predatory behavior. Consumers eligible for restitution include those who paid off judgments held by TMP’s client but were not properly notified to the court within the required timeframe.
New Yorkers encountering issues with debt collectors are encouraged to file complaints with the OAG’s Consumer Frauds and Protection Bureau either online or by calling 1-(800) 771-7755. The case was managed by Assistant Attorney General Glenna Goldis and Legal Assistant Christine Reynolds, under the supervision of Deputy Bureau Chief Laura J. Levine and Bureau Chief Jane M. Azia, all part of the Consumer Frauds and Protection Bureau within the Division of Economic Justice.