Sued By LR Credit In New York or New Jersey?

A man in suit and tie with his arms crossed.

By: Robert J. Nahoum


Three scenarios might have led you this article:

  1. You have just been notified by your bank that your account has been frozen because there is a debt collection judgment against you by some company called LR Credit. 
  • You’ve received a notice from your County Sheriff or a New York City Marshall that your wages will be garnisheed because there is a debt collection judgment against you from LR Credit.   
  • A process server has shown up to your home to deliver a summons and complaint or you’ve come home to find a summons and complaint taped to your door?  Turns our, you’re being sued by LR Credit.   


LR Credit is a “junk debt buyerâ€, buying up portfolios of old debt from banks, credit card companies, hospitals, doctors, cell phone companies and car companies for pennies on the dollar. The debt buyers then try to collect the full amount from consumers.

LR Credit is a shell company which is really owned by “Leucadia National Corp.†.  Leucadia National Corp. created a multitude of shells companies under the moniker “LR Credit†including:

LR Credit 1, LLC, LR Credit 2, LLC, LR Credit 3, LLC, LR Credit 4, LLC, LR Credit 5, LLC, LR Credit 6, LLC, LR Credit 7, LLC, LR Credit 8, LLC, LR Credit 9, LLC, LR Credit 10, LLC, LR Credit 11, LLC, LR Credit 12, LLC, LR Credit 13, LLC, LR Credit 14, LLC, LR Credit 15, LLC, LR Credit 16, LLC, LR Credit 17, LLC, LR Credit 18, LLC, LR Credit 19, LLC, LR Credit 20, LLC, LR Credit 21, LLC, LR Credit 22, LLC, LR Credit 23, LLC


In 2015, a $59 million settlement was reached in a federal class-action lawsuit over debt-collection tactics that included alleged fraudulent affidavits and “sewer serviceâ€.

The lawsuit named as defendants a now-defunct New York debt collection law firm Mel S. Harris & Associates, its process server, and Leucadia National Corp.

Under the settlement, Leucadia National Corp., agreed to provide $46 million in damages, plus returning more than $4.5 million received in 2015 in debt collection matters. Also, Leucadia agreed that enforcement of 192,000 default judgments would no longer be pursued.

In the debt collection industry, judgments are often sold over and over again between debt buyers.  Judgments awarded to LR Credit may have slipped through the cracks and may still be collected today under new ownership through wage garnishments and frozen bank accounts.

LR Credit, its attorneys and the companies it sells its judgments to are accused notorious violator of federal debt collection laws known as the Fair Debt Collection Practices Act (FDCPA) and is sued regularly by consumers for these violations.  The FDCPA is a federal law that regulates the collection of consumer debts. It precludes third party debt collectors from using false, misleading, deceptive and harassing debt collection tactics.


If you’ve been sued by LR Credit in a debt collection lawsuit, consider hiring a qualified attorney experienced in debt defense.  The Law Offices of Robert J. Nahoum, P.C. routinely represents consumers in debt collection lawsuits brought by debt buyers like LR Credit in New York and New Jersey.

As with all of our debt defense cases, The Law Offices of Robert J. Nahoum, P.C. analyzes debt collection cases brought by debt buyers like LR Credit to determine if any violations of the FDCPA have occurred.  If so, we recommend to our clients that suit be brought in Federal District Court on behalf of the consumer and against the debt buyer. 

If a debt buyer like LR Credit violates the FDCPA, you can sue it for statutory damages up to $1,000.00 plus actual damages (like pain and suffering) and your attorney’s fees.  In FDCPA cases, The Law Offices of Robert J. Nahoum, P.C. doesn’t charge our clients a penny out of pocket.

If you need help settling or defending a debt collection lawsuit, stopping harassing debt collectors or suing a debt collector, contact us today to see what we can do for you.  With office located in Brooklyn and Rockland County, the Law Offices of Robert J. Nahoum defends consumers in debt collection cases throughout the Tristate area including New Jersey.

The Law Offices of Robert J. Nahoum, P.C
(845) 232-0202

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