A federal judge has issued a default judgment under the Fair Debt Collection Practices Act against a company that allegedly harassed debtors and held itself out as a law firm. In a decision Feb. 5, Western District Judge William M. Skretny awarded the plaintiffs $4,784 in damages and legal fees in a case against Advanced Credit Solutions.
In Bonafede v. Advanced Credit Solutions, 10-cv-956S, a debt collector with the company contacted the debtors’ mother and grandmother, made threats and at one point identified himself as “Steve Donatello” of “the Law Offices of Steven Donatallo,” a fake name and firm. Since the collection agency did not appear to defend the action, Judge Skretny issued a default judgment. The court ordered statutory damages of $250 to the grandmother and $500 to the mother and the two debtors. The legal fee to Frank J. Borgese of Buffalo, $3,034, was based on an hourly rate of $180.
