'Deceptive' Brooklyn Debt Collection Firm Sued For Millions By AG

BROOKLYN, NY — Luisa Calixto, a low-income Spanish-speaking South Sloper, was stunned when a Brooklyn debt collection law firm demanded $30,100 in unpaid rent, as it was about six times the amount she'd withheld, court records show.

Calixto's case — which began with rent withheld over repairs her landlord refused to make and ended with a dismissal — is one of 19 (including several in South Slope) detailed in a new $6.8 million lawsuit filed Thursday by the Attorney General's office against Balsamo, Rosenblatt, & Hall over its "frivolous" and "deceptive" practices, according to court records.

"Every rent demand and court filing issued by [the firm] falsely imply that they have personally considered and formed a legal conclusion about the tenant’s case," the civil suit reads.

"In fact, they are merely transcribing information given to them by their clients with no further review. This fraudulent and deceptive representation violates [state business law]."

Reached for comment, Balsamo, Rosenblatt, & Hall declined to answer questions about the suit.

The Attorney General's office accuses Balsamo, Rosenblatt, & Hall of "abusive debt collection practices" as well as "frivolous and problematic cases where [attorneys at the firm] misrepresented facts."

Less than five attorneys at the Brooklyn firm process thousands of cases per year and fail to conduct"any meaningful attorney review of cases," the Brooklyn Supreme Court lawsuit contends.

Instead, Balsamo, Rosenblatt, & Hall relied on its clients' intake sheet claims as the basis for debt collection letters and litigation against tenants to unlawfully sue and evict tenants, often misspelling tenants names and incorrectly identifying their landlords, the suit contends.

"This reckless business model, built to maximize volume, gives the false impression to tenants and the courts that [the attorneys] have exercised their professional legal judgement about the contents and validity of the debt collection letter or court filings," the suit reads.

"These actions are unlawful and have at times had disastrous consequences."