We Defend You Against

Centurion Capital Corp.

The Langel firm defends consumers against New York state court collection lawsuits brought by Centurion Capital Corp. In appropriate cases, we may investigate claims against Centurion Capital Corp. for violations of the Fair Debt Collection Practices Act, deceptive business practices, and other applicable laws.

Centurion Capital Corp. purchases defaulted consumer debt to collect and sue on them.

Legal and Ethical Issues in Centurion Capital Corporation's Debt Collection Practices

In a complex legal case involving Centurion Capital Corporation, Palisades Acquisition XVI, and various law firms, the court pointed out significant legal and ethical issues related to debt collection and litigation practices. Centurion Capital's lawsuits, numbering over 13,700, were deemed as deceptive business practices due to their lack of proper authorization to operate in New York. The court's decision highlighted Centurion's non-compliance with New York statutes and insufficient proof to establish a prima facie case. Centurion Capital Corp. v. Guarino, No. 11117/05 (N.Y. Civ. Ct. Apr. 30, 2012).

Five takeaways from Centurion Capital Corp. v. Guarino:

1. Despite evidence that the defendants may have incurred the original debt, the creditor's non-compliance with New York's statutes disallowed the use of the court system for debt collection.
2. Centurion Capital Corporation was instructed to prove its legal standing to bring forward 930 actions in Richmond County, failing which all the actions would be dismissed.
3. Law firms Wolpoff & Abramson and Mann Bracken were under scrutiny for their lack of registered agents, violating the statutes authorizing their presence in New York.
4. The court emphasized the need for legislative action to address recurring problems in consumer credit litigation, recommending measures such as reducing the statute of limitations to one year.
5. The case illustrated the pervasive issues in third-party debt collection practices, shedding light on the lack of proper documentation and proof to justify the lawsuits.

​

Centurion Capital Corp.'s Complaint is Dismissed because it is an Unlicensed Debt Collection Agency

In Centurion Capital Corporation v. Druce (Civ. Ct. New York County 2006), the Civil Court of the City of New York dismissed Centurion Capital's complaint against a consumer on the ground that it was an unlicensed debt collection agency. The court then denied Centurion Capital's motion for summary judgment against the consumer.

Centurion Capital sued the consumer on a defaulted Aspire Card. Centurion Capital allegedly purchased the consumer's account, which was in default. The consumer disputed Centurion Capital's allegations.

As a threshold matter, the court had to determine whether Centurion Capital was a debt collection agency under New York law. If the court found it to be a debt collection agency, the action would have to be dismissed because Centurion Capital was not licensed as a debt collection agency. Centurion Capital urged that it was not a debt collection agency because it only collects debt due to itself – it does not collect debts owed or due to another. The court, however, found that "the New York City statute, like the [FDCPA], should be interpreted to define debt collection agencies as entities which collect defaulted debt, whether or not the debt they collect is due to themselves or others."

NY law states that "a plaintiff that is required to be licensed must allege that it is [licensed] and include its licensing information in its complaint." Because Centurion Capital was not licensed and could not meet this requirement, the court dismissed its complaint. Since the complaint was dismissed, the court did not need to address Centurion Capital's motion for summary judgment.

3 Takeaways:

1. Licensing Matters: This case underlines the significance of a debt collection agency being licensed under New York law. The court dismissed Centurion Capital's complaint against the consumer because they were not licensed as a debt collection agency, emphasizing the need for consumers to verify a debt collector's license before acknowledging any debt.

2. Broad Definition of Debt Collection Agencies: The court interpreted the New York City statute broadly to define debt collection agencies as entities that collect defaulted debt, whether or not the debt they collect is due to themselves or others. This means that even companies that buy defaulted debts and then attempt to collect on them are considered debt collection agencies.

3. Incomplete Complaints Can Be Dismissed: The court ruled that any plaintiff, such as a debt collection agency, required to be licensed must declare their licensed status and include their licensing information in their complaint. If a company like Centurion Capital does not meet this requirement, their complaint can be dismissed. This highlights the importance of consumers thoroughly reviewing any complaints filed against them for complete and accurate information.

​

Centurion Capital Corp. Biographical Information

Centurion Capital Corp. is a domestic business corporation incorporated in New York and is principally located at 99-D Ridgeland Road, Rochester, New York, 14623.

More information to help with a wage garnishment:

• Receive a Notice of Garnishment? Here’s a Summary of New York Law
• How much of my wages can be garnished? Summary of New York Law
• Vacating a Default Judgment in New York: 8 Fine Points

Here is a list of New York City’s Marshals who enforce wage garnishments:

• City Marshal Ronald Moses
• City Marshal Bruce Kemp
• City Marshal Gregg E. Bienstock
• City Marshal Martin Bienstock
• City Marshal Henry Daly

​If you need help, call us at (888) 271-7109 or complete this form.