New York City's municipal debt collectors have forged an unholy alliance with sleazy subprime lenders


#1

Originally published at: https://boingboing.net/2018/11/29/highest-paid-ny-employee.html


#2

Just goes to show you, slimy bottom feeders can thrive in the right environment.


#3

Used to be that 1990’s Russia was the right environment. But the chickens have come home to roost as they always do, disemboweling the centre of empire after the fringes have been fully exploited.


#4

They make New Jersey blush…


#5

He needed money to expand

Wanted. He wanted money. No business needs to expand.


#6

Well there’s your problem right there!

Amazing that with a borrower in Texas, from a loan shark in Florida, that a New York City “marshal” can insert himself into the process and rob a bank account.

Damn, what the hell?

How an obscure legal document turned New York’s court system into a debt-collection machine that’s chewing up small businesses across America. Bloomberg.

Here’s the fish-hook:

The lenders’ weapon of choice is an arcane legal document called a confession of judgment. Before borrowers get a loan, they have to sign a statement giving up their right to defend themselves if the lender takes them to court. It’s like an arbitration agreement, except the borrower always loses. Armed with a confession, a lender can, without proof, accuse borrowers of not paying and legally seize their assets before they know what’s happened. Not surprisingly, some lenders have abused this power. In dozens of interviews and court pleadings, borrowers describe lenders who’ve forged documents, lied about how much they were owed, or fabricated defaults out of thin air.

And here we go:

The person on the phone wasn’t a federal official. Dowd had reached the Brooklyn office of Vadim Barbarovich, who holds the title of New York City marshal. He’d stumbled onto an arcane feature of the city’s government that’s become another powerful tool for cash-advance companies.


#7

This isn’t a bug.
Nobodies saying that this is a bug.
Are they?


#8

Way I imagine everything in NYC.

Mayor: “have my own private army”.
“stop and frisk”

Like a private prison. And EVERY day we allow media from there to poison us.


#9

Don’t be scared to visit, at least if you’re white and at least middle class. You’ll never feel marginalised like you might in, say, a small town in the Heartland full of Real Americans™ like yourself.

Fixed that for you, bucko.


#10

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