If you have received a letter, phone call, or lawsuit from Mandarich Law Group, LLP, you are not alone. This debt collection law firm is based in Chicago, Illinois, and operates in New York and more than 20 other states. Mandarich represents major debt-buying companies such as Portfolio Recovery Associates, LLC, Cavalry SPV I, LLC, LVNV Funding, LLC, Midland Funding, LLC, and others. These companies purchase large portfolios of charged-off consumer debt from banks, credit card issuers, and lenders at a fraction of the balance owed.
Once the debt buyers acquire the accounts, they hire collection law firms like Mandarich to pursue payment. That process can include demand letters, phone calls, and, in many cases, lawsuits filed in New York state courts. When a judgment is obtained, collectors can pursue wage garnishment, bank levies, or liens on property.
Although these actions can be stressful, you have rights under federal and New York law that can protect you from abusive or unlawful debt collection activity. Understanding those rights is the first step toward an effective defense.
The Companies Behind the Lawsuits
In many New York debt collection cases, Mandarich Law Group represents large debt buyers that claim to have purchased old accounts from major creditors. Companies like Portfolio Recovery Associates and Midland Funding regularly file thousands of lawsuits each year against New York consumers.
When Mandarich sues on behalf of one of these clients, it must prove that the debt is valid and that the plaintiff has the legal right to collect it. That means they must produce documents showing the original creditor, the account history, and the chain of assignment proving that the debt was properly transferred to the current owner.
However, debt buyers often lack the necessary records to establish ownership or the correct balance. Many lawsuits are filed with minimal or incomplete evidence. If challenged properly, these cases can be dismissed or settled for significantly less than the claimed amount.
Portfolio Recovery Associates’ Legal Troubles
Portfolio Recovery Associates, one of the largest debt collectors in the country, has been the subject of several enforcement actions by federal regulators. In 2015, the Consumer Financial Protection Bureau (CFPB) issued a consent order requiring Portfolio to pay over $27 million in refunds and penalties for violating the Fair Debt Collection Practices Act (15 U.S.C. §1692 et seq.) and the Consumer Financial Protection Act (12 U.S.C. §5531). The Bureau found that the company collected on unverified debts, filed misleading affidavits in court, and sued consumers for debts that were already too old to be legally enforced.
Years later, in 2023, the CFPB again accused Portfolio Recovery Associates of continuing to violate those same federal laws and the prior consent order. The Bureau sought more than $24 million in penalties and restitution. This history highlights why consumers should never assume a debt collector’s claims are accurate. Even large national companies have been found to use deceptive or unlawful tactics.
When Mandarich Law Group sues on behalf of a client such as Portfolio, it’s important to demand proof of ownership and documentation. A skilled consumer protection attorney can review whether the collector has complied with all legal requirements.
Your Rights Under Federal Law
Federal law provides strong protection against abusive collection practices. The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from engaging in harassment, misrepresentation, or unfair conduct.
Under the FDCPA, debt collectors cannot:
- Threaten legal action they do not intend to take.
- Misstate the amount or legal status of a debt.
- Contact you before 8 a.m. or after 9 p.m. without permission.
- Communicate with third parties about your debt.
- Continue contacting you after you send a written request to stop.
Violations of the FDCPA can entitle you to statutory damages up to $1,000, plus actual damages and attorney’s fees. In addition, the Fair Credit Reporting Act (15 U.S.C. §1681) requires accurate reporting of debts to credit bureaus. If a collector reports false information or fails to properly investigate a dispute, you may also have a claim for relief.
New York Laws That Protect You
New York law offers its own protections to consumers facing debt collection. The New York General Business Law §601 prohibits harassment, threats, and false representations in the collection of debts. For example, a collector cannot threaten arrest, use abusive language, or mislead you about the consequences of non-payment.
In addition, New York’s Civil Practice Law and Rules (CPLR) §213(2) sets a statute of limitations on most contract-based debts, traditionally six years. However, under amendments to the Consumer Credit Fairness Act, which took effect in April 2022, the statute of limitations for consumer credit transactions is now only three years. Once that period has expired, a collector cannot lawfully sue you in court to recover the debt. If Mandarich Law Group files a lawsuit on a time-barred account, you can raise the statute of limitations as a complete defense.
Debt collectors must also comply with the New York City Administrative Code §20-489 et seq., which regulates debt collection activities within the five boroughs. The local rules require specific disclosures and prohibit deceptive collection tactics.
Defending a Lawsuit Filed by Mandarich Law Group
If you receive a Summons and Complaint from Mandarich Law Group, do not ignore it. In New York, you generally have 20 days to respond if you were personally served, or 30 days if served by another method. Failing to answer can result in a default judgment, allowing the creditor to garnish wages or freeze bank accounts without further notice.
A proper defense starts with filing an Answer with the court that raises all applicable defenses, such as:
- Lack of standing (if Mandarich’s client cannot prove ownership of the debt).
- Expired statute of limitations.
- Incorrect balance or improper interest calculation.
- Violations of federal or state collection laws.
An attorney experienced in consumer debt defense can review your paperwork, assess whether the lawsuit is legally sufficient, and determine whether settlement, dismissal, or litigation is the best strategy. Many clients are able to negotiate substantial debt reductions or affordable repayment plans once a defense is properly raised.
The Importance of Professional Representation
Debt collection law is highly technical. Many consumers lose cases simply because they do not respond or because they fail to understand procedural requirements. Mandarich Law Group handles a high volume of cases, and its attorneys rely on standardized procedures. Having a consumer protection lawyer on your side ensures that your rights are asserted and that every claim is examined for accuracy.
Law Office of Simon Goldenberg, PLLC has represented countless New York clients facing lawsuits from Mandarich Law Group and other major debt collectors. The firm’s attorneys know the documentation and proof that collectors must provide and understand how to challenge faulty evidence. Their experience in negotiating with debt buyers has helped many clients reduce their overall debt balances and avoid wage garnishment or bank freezes.
New York Debt Defense Lawyer
If you are being sued by Mandarich Law Group in New York, don’t face it alone. You have rights under both state and federal law that can protect you from unlawful collection practices. Whether the debt is alleged by Portfolio Recovery Associates, Midland Funding, or another debt buyer, you have the right to demand proof, challenge improper evidence, and seek fair resolution.
The Law Office of Simon Goldenberg, PLLC focuses on defending consumers across New York who are facing debt collection lawsuits. The firm provides personalized attention, clear guidance, and aggressive representation.
For immediate help and a free consultation, contact the Law Office of Simon Goldenberg, PLLC by calling (888) 301-0584 or contacting us online to discuss your legal rights and options. Acting quickly can protect your finances and help you achieve a fair outcome.