Palisades Collection Unlawfully Garnished Manhattan Consumer’s Wages, Class Action Alleges

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Palisades Collection, LLC is on the receiving end of a proposed class action lawsuit that alleges the company unlawfully garnished a Manhattan consumer’s wages.

According to the suit, upon discovering that her wages were being garnished, the plaintiff sought legal counsel and learned that her pay was going to non-party Colonial Credit Corporation—a company she claims she had never heard of. The plaintiff allegedly went on to contact a law firm that purported to represent Colonial Credit, only to discover that the defendant was the actual company garnishing her wages. Colonial Credit was dissolved and has not existed since March 2009, the case explains, meaning the defendant was improperly collecting the plaintiff’s pay under a different name. The suit claims the garnishment of the plaintiff’s wages was illegal because she never received a notice of assignment of any debt or judgment.

“On information and belief, defendant garnishes wages in the name of Colonial Credit while concealing that it is actually the one garnishing the wages because defendant cannot prove a valid assignment of the alleged debt to defendant or a valid chain of title to the alleged debt,” the complaint reads.