By: Robert J. Nahoum
A Bronx judge recently denied debt buyer Cavalry’s motion for summary judgment after finding that the Plaintiff failed to comply with the strict notice requirements of the Consumer Credit Fairness Act (CCFA). The case—Cavalry SPV I, LLC v. Wilkerson (Sup. Ct., Bronx County, Dec. 4, 2024, Hummel, J.)—involved a $4,600 Home Depot credit card debt originally owed to Citibank and later sold to Cavalry SPV I, LLC, a well-known debt buyer.
What Happened in the Case
Cavalry sued a Bronx consumer, in 2023, claiming she defaulted on her Citibank credit card payments. The Defendant represented herself (“pro se”) and filed an answer contesting service and explaining that she was disabled and living on limited income.
Cavalry later filed a motion for summary judgment, asking the court to decide the case in its favor without a trial and to dismiss the Defendant’s defenses. The motion was unopposed, but that didn’t mean Cavalry automatically won.
The Consumer Credit Fairness Act: New Rules for Debt Collectors
Judge Veronica Hummel explained that the Consumer Credit Fairness Act, which took effect in May 2022, sets strict requirements creditors must follow when suing consumers in New York State. The law created new notice and documentation requirements both when starting a lawsuit and when asking the court for judgment—especially when the defendant is not represented by a lawyer.
In particular, CPLR 3212(j)—added by the CCFA—requires debt collectors who move for summary judgment against self-represented consumers to submit an “additional notice” to the court clerk along with:
- A stamped, unsealed envelope addressed to the consumer;
- A bilingual (English and Spanish) notice explaining the lawsuit, the right to oppose the motion, and what happens if no response is filed;
- Proof that the court clerk mailed this notice and recorded the mailing date in the case file.
Under the new law, no summary judgment can be granted unless there’s proof this special notice was mailed and the required waiting period has elapsed.
Why the Judge Denied the Motion
Cavalry submitted some documentation showing it prepared an “additional notice of summary judgment” form. However, the notice was undated, there was no affidavit of service, and there was no confirmation that the clerk ever mailed the notice to the Defendant.
Because Cavalry failed to comply with the CCFA’s procedural safeguards, the court ruled that Cavalry had not made a proper prima facie case and therefore denied the motion for summary judgment. Even the request to strike the Defendant’s defenses was denied, although the creditor was allowed to renew its motion later if it could show full compliance with the Act.
Why This Case Matters
This decision reinforces that New York courts are strictly enforcing the Consumer Credit Fairness Act. Debt buyers and their lawyers must now do more than just file paperwork—they must prove every step of consumer notice and service was done correctly, or their cases can be delayed or dismissed.
For consumers, this case underscores the importance of responding to lawsuits and being aware of the protections built into the law. Even if a consumer does not have an attorney, courts are taking seriously their right to proper notice and fair treatment.
Takeaway
The takeaway is simple: Consumers have real procedural protections under New York law, and debt collectors who cut corners will not be allowed to win judgments automatically. The CCFA ensures that fairness and transparency are built into every step of debt collection litigation.
⚖️ Know Your Rights: If You’ve Been Sued by a Debt Buyer
- You have the right to be properly served. Collectors must follow strict rules about how you’re notified of a lawsuit.
- You have the right to see proof of the debt. Debt buyers must show a clear chain of ownership and documentation from the original creditor.
- You have the right to respond. Even if you don’t have a lawyer, you can file an answer and appear in court to tell your side of the story.
- You have the right to fair treatment. Under the Consumer Credit Fairness Act, creditors who skip required notices or paperwork can lose their case.
If you’ve received court papers or been sued by a debt buyer like Cavalry, Midland, or Portfolio Recovery, don’t face it alone. The Law Offices of Robert J. Nahoum, P.C. helps consumers across New York fight back against improper debt collection practices.
Contact us today for a free consultation to learn your rights and protect your finances:
📞 (845) 232-0202 | 🖥️ www.nahoumlaw.com