LANDMARK DECISION REVEALS QUESTIONABLE COLLECTION TACTICS BY MEDALLION FINANCIAL CORP
Updated: Jul 28
FOR IMMEDIATE RELEASE
New York, NY – July 26, 2023 - In a stunning legal victory, the Supreme Court of New York has vacated a judgment against NELSK Taxi Inc. and its co-defendants, Marc and Jacqueline Resilard, exposing the questionable debt collection tactics employed by plaintiff Medallion Financial Corp.
According to the court's decision, Medallion Financial Corp. is said to have attempted to collect on a debt that was previously agreed to be discharged. The balance of the defendant’s loan, totaling $612,016.20, was documented as canceled debt on tax form 1099-c. Evidence provided included an email chain that appeared to calculate the amount of debt to be discharged.
Despite the agreement and documented evidence of debt cancellation, Medallion Financial Corp. proceeded to file an action for summary judgment in lieu of a complaint against NELSK Taxi Inc., which ultimately resulted in an entered judgment.
However, the court, presided by Hon. Melissa A. Crane, found that the defendants had a reasonable excuse for failing to initially oppose the motion due to poor advice from their former counsel. Moreover, the court found a meritorious defense in the evidence suggesting that Medallion Financial Corp. agreed to discharge the defendant's debt after obtaining the judgment.
Highlighting Medallion Financial Corp.'s dubious behavior, the court stated, "Plaintiff claims that this was a mistake, but Plaintiff has never corrected this form with the IRS."
In light of these findings, the judgment against NELSK Taxi Inc. and its co-defendants was vacated, with the case being restored to the active calendar.
With this decision, the defendants have been granted 30 days from the decision and order to move to dismiss based on the discharge of the debt.
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Situated in the heart of Midtown Manhattan, Tariq Law is a distinguished consumer advocacy firm, specializing in FCRA, FDCPA, and debt defense matters. Under the leadership of Managing Attorney Subhan Tariq, a 2023 Super Lawyers Rising Star, the firm is committed to safeguarding consumer rights against unscrupulous corporations.
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