Receiving notice of a lawsuit filed by Crown Asset Management, LLC (“CAM”) can be distressing and confusing. For many New Yorkers, these cases come without warning, years after an account has gone into default. You may feel blindsided, but you should know: you are not powerless, and you do have rights under both federal and New York law.
Crown Asset Management is what the law refers to as a “debt buyer.” They purchase portfolios of charged-off accounts from lenders—including banks such as Cross River Bank, and fintech companies such as Upstart Network and Upgrade, Inc.—at a fraction of the original balance. CAM then seeks to collect the entire amount, often through lawsuits filed in New York courts. These cases are frequently handled by outside collection law firms, such as Tromberg, Miller, Morris & Partners, PLLC, and Pressler, Felt & Warshaw, LLP.
When you are served with a summons and complaint, the worst thing you can do is ignore it. Acting quickly, and with legal guidance, can make the difference between having a judgment entered against you and negotiating a manageable resolution.
Understanding Crown Asset Management’s Role
Unlike the original creditor, a debt buyer such as CAM did not extend credit to you. Instead, CAM purchases large bundles of defaulted accounts from lenders at steep discounts. Once purchased, CAM becomes the “current creditor” under New York law. They typically outsource collection and litigation to third-party law firms.
This structure means that the law firms suing on CAM’s behalf must be able to prove—through admissible evidence—that CAM has the legal right to enforce the debt and that the amount claimed is accurate. In practice, those proofs are not always available or properly documented.
The Laws Governing Your Rights
You are protected under both federal consumer law and New York procedural law.
Fair Debt Collection Practices Act (FDCPA), 15 USC § 1692: The FDCPA mandates that collectors of debt give a written notice of the alleged debt within 5 days of making initial contact. Under 15 USC § 1692g, you have the right to dispute the debt within 30 days, and the collector must cease collection until they provide verification. If the law firm pursuing you did not follow this process, it may provide a defense or even grounds for a counterclaim.
New York Consumer Credit Fairness Act (CCFA): In 2021, New York enacted sweeping reforms under the CCFA, codified at CPLR § 214-i. The statute of limitations for consumer credit transactions is now three years, reduced from six. Importantly, the law prevents expired debts from being revived by partial payments or acknowledgments after the limitations period has lapsed.
Further, when a debt buyer like CAM seeks a default judgment, courts apply stricter evidentiary rules. The plaintiff must submit affidavits, bills of sale, and account-level documentation that specifically tie the debt to you. These requirements were adopted because, historically, many judgments were entered against New Yorkers without sufficient or reliable proof.
Judgments and Relief: If a default judgment has already been entered, relief may still be available.
- CPLR § 317 provides relief when you were served other than by personal delivery and did not receive notice in time to defend.
- CPLR § 5015 authorizes vacatur of a judgment based on excusable default, lack of jurisdiction, or fraud.
These statutes are particularly important in cases where improper service—sometimes called “sewer service”—prevented a defendant from ever learning of the lawsuit.
Common Issues In Crown Asset Management Lawsuits
In defending clients against Crown Asset Management, several recurring problems arise:
- Incomplete Chain of Title: CAM must prove that your account was validly assigned from the original creditor through each subsequent transfer. Missing or vague assignments can be fatal to their case.
- Inflated Balances: The amount claimed sometimes includes unsubstantiated fees or interest. Note that New York law limits post-judgment interest on consumer debt to 2% per annum under CPLR § 5004.
- Statute of Limitations: If more than three years passed since the date of your last payment, the action may be time-barred under CPLR § 214-i.
- Service of Process Defects: New York requires strict compliance with service rules. If you never received the summons, that can form the basis of a motion to vacate under CPLR § 317 or CPLR § 5015.
- FDCPA Violations: If the collection law firm failed to provide validation, misstated the balance, or engaged in misleading tactics, you may be entitled to damages under 15 USC § 1692k.
What to Do if You Are Sued
If you have been served by Crown Asset Management or its attorneys, take these steps immediately:
- Do not ignore the papers. In New York, you typically have 20 days to respond if personally served within the state, or 30 days if served otherwise. Missing this deadline allows the plaintiff to seek a default judgment under CPLR § 3215.
- Preserve your documents. Keep all collection letters, emails, or account statements. These may reveal errors or provide proof of timelines relevant to the statute of limitations.
- Consult with counsel early. The sooner you involve a lawyer, the stronger your defense options. A lawyer can evaluate jurisdictional issues, review the sufficiency of the plaintiff’s evidence, and assert defenses grounded in both state and federal law.
- Do not rush into settlement. Debt buyers often demand the full claimed amount. But many cases are resolved for a fraction of that figure once their evidentiary weaknesses are exposed.
How Legal Representation Makes a Difference
When defending against Crown Asset Management, we approach each case methodically:
- We demand strict proof of ownership and account balance.
- We file responsive pleadings raising affirmative defenses such as statute of limitations, lack of standing, and improper service.
- We move to dismiss when the plaintiff’s evidence fails to meet New York’s heightened requirements.
- We negotiate settlements when strategically appropriate, often securing substantial reductions and affordable payment terms.
- Where violations of the FDCPA are present, we pursue remedies on your behalf.
The result is not one-size-fits-all. Some cases are dismissed outright. Others are settled on favorable terms that relieve clients of crushing financial burdens. What matters most is that you respond promptly and assert your rights.
Talk to a New York Consumer Protection Lawyer Today
If you are facing a lawsuit brought by Crown Asset Management or one of their affiliated law firms, the time to act is now. Every deadline matters. By asserting your rights under the Fair Debt Collection Practices Act and New York’s Consumer Credit Fairness Act, you may be able to reduce or even eliminate the claims against you.
For a confidential review of your case, contact Law Office of Simon Goldenberg, PLLC by calling (888) 301-0584 or contacting us online for a free consultation with a debt defense lawyer. We will evaluate the lawsuit, explain your legal options, and develop a defense strategy tailored to your situation.