Kew Gardens, NY – Shiryak, Bowman, Anderson, Gill & Kadochnikov takes pride in being a zealous consumer advocacy firm. Recently, the team had a major victory in the United States District Court for the Eastern District of New York. In the case, Managing Partner Alexander Kadochnikov faced a complex motion to dismiss in an action involving violations of the Fair Debt Collections Practices Act (FDCPA) and General Business Law (GBL). District Court Judge Pamela Chen ruled that SBAGK’s client’s action—alleging that a foreclosure firm that commenced a foreclosure action beyond the statute of limitations—was valid and the bank may have violated federal law. 

In a rare ruling on this issue, District Judge Chen indicated that the foreclosure firm, by sending pre-foreclosure notices and commencing an action that was determined to be beyond the statute of limitations, may have violated the FDCPA and GBL. Given that these actions involve largely legal arguments, this decision’s impact is far-reaching. 

Alex Kadochnikov

“This is a huge win for consumers. In FDCPA claims, there is always a motion to dismiss that is either threatened or filed. We didn’t back down. This decision shows that banks can try to collect old or decaying debt, but there will be consequences if they are caught. I feel that this decision, as well as future decisions, will make banks think twice about trying to collect on mortgages that are time-barred.” said Alexander Kadochnikov, Managing Partner of SBAGK. 

Even more interesting is that the far-reaching implications of the decision, which distinguished the facts in this case from the Second Circuit ruling in Weaver v. Boriskin (a case on a similar issue which ruled in the bank’s favor for a non-judicial foreclosure). The Judge, here, found that because the attempt to collect a debt was judicial and beyond the statute of limitations, the bank could be held liable for consumer rights violations. The entire decision can be found here.

This decision comes in the wake of a victory in the underlying foreclosure action that was successfully dismissed by SBAGK’s diligent team of consumer advocates. 

Mark Anderson

“This has been a true team effort. We’re very proud of the outcome we’ve been able to get for our client, but also pleased to contribute to the precedent that has been established by this matter,” said Mark Anderson, Managing Partner at SBAGK. 

 After the foreclosure action was dismissed, the bank actually attempted to vacate the dismissal of the prior action and the state court denied those attempts. 

“Banks will not give up, and we’re ready,” Anderson continued. “They will say ‘but your client is getting a free house.’ Our response is always ‘if they are getting a free house, then you gave it to them.’ We won’t be bullied.” 

The statute of limitations for recovering on a mortgage in the state of New York is six years. If you believe you might have been subject to the collection of a debt that is beyond the statute of limitations, our team is ready to help.