A Southern District magistrate judge slashed the fees requested by two small law firms that sued debt collectors and settled, saying the fee application was “simply too greedy” and their “chutzpah” shouldn’t be rewarded.

The Law Offices of Robert J. Nahoum in Nyack and the Law Offices of David I. Pankin represented Irma Warren in a suit against James C. Bender & Associates and Action Collection Co., claiming they violated the Fair Debt Collection Practices Act by making false representations to collect a debt.