Massachusetts Attorney General Sues Bankruptcy Collection Firm Lustig, Glaser & Wilson

As a Massachusetts bankruptcy lawyer, we help many folks who need to discharge their debts and get a fresh start.  Many debts have already gone to collection.  The collection law firms in Massachusetts include the Waltham firm Lustig, Glaser & Wilson.  We have litigated some cases against that law firm and have always had a professional, albeit oppositional, relationship.

Nevertheless, the Massachusetts Attorney General, Maura Healy, has uncovered documentation and testimony regarding the firm that shows that they have been using unfair and deceptive practices against consumers.  Noting that the victim consumers have been among the Commonwealth’s poorest and weakest, the Attorney General filed a civil lawsuit in Suffolk Superior Court.

The Suffolk Superior Court Lawsuit against Lustig, Glaser & Wilson

The lawsuit alleges that Lustig, Glaser and Wilson used an automated “system” that resulted in attempts to collect debts based on inaccurate and incomplete information.  “The company used the judicial system to intimidate and harass” debtors the Complaint says on debts that they had “no right to collect.”  Essentially, the lawsuit says that the law firm is simply filing suit on anything and everything without taking any careful consideration as to what is really owed, and whether they are listing the proper defendants in the lawsuits.

The Attorney General’s lawsuit claims that the firm’s procedure is to download a spreadsheet of debt from their clients and then file suit.  However, the spreadsheet lacks important information regarding who really owns the debt and payment history.  Without full information, it is unfair to file a lawsuit against a debtor the Attorney General’s complaint says.

The fact that the lawsuits are the biggest banks and financial institutions against the poorest Commonwealth citizen should put Lustig, Glaser and Wilson on notice to be extra careful – the defendant debtors do not usually have attorneys or even the resources to defend themselves on their own.  Many are too overwhelmed to go to Court to even try to make a defense and thus lose by default and are subsequently followed for years in collection cases.

Lustig, Glaser & Wilson Forced Debtors to Turn Over Social Security Monies, Complaint Says

According to the Complaint filed by Healy, Lustig, Glaser and Wilson would push low and moderate income people to turn over monies from their Social Security checks, their Veterans benefits, disability and even unemployment compensation benefits.  This is illegal, according to the Complaint.  According to the Complaint, one debtor whose only income was $700 per month in disability income, was forced to agree to a monthly payment.  Certainly, if the debtors had the foresight to go to Court to fight collection, they would not be ordered to pay from these sources.

The Federal Consumer Financial Protection Bureau Lawsuits

Massachusetts Senator Elizabeth Warren was the brainchild of the Federal Consumer Financial Protection Bureau.  That agency has successfully sued law firms for unfair and deceptive collection practices similar to the ones cited above.  Thus, Lustig, Glaser and Wilson are not alone in their practices.

Bankruptcy and Consumer Attorney Neil Burns

If you have a judgment against you, or are being pursued by a collection agency, contact bankruptcy Attorney Neil Burns.  He has over 30 years of experience in the Small Claims, District, and Superior Courts.  He has represented creditors and knows and understands their methods.  He represents debtors, he will work with you to get the best results possible – whether it’s filing for bankruptcy, or aggressively rebutting a complaint by the collection agency attorney.  Call for a free consultation:  617-227-7423.