NYLAG Stops Illegal Collection of Tuition Debt from For-Profit College
Philemon v. Aries Capital Partners et al.
In 2017, Victor Philemon was sued in New York City Civil Court by a company called Aries Capital Partners. Aries claimed that Mr. Philemon owed a debt from unpaid tuition at the now-closed for-profit college called the Technical Career Institute (TCI). Aries’s lawsuit against Mr. Philemon was illegal—including because Mr. Philemon never owed any tuition in the first place. Aries also sued more than two hundred other former TCI students in similar collections suits. NYLAG brought this lawsuit against Aries and its president and attorneys, on behalf of Mr. Philemon and all the other TCI students who had similar lawsuits filed against them.
The parties have agreed to settle the cases, so that, if approved by the court, all the Civil Court lawsuits against the class members will be dismissed and judgments against them will be vacated; all money collected from class members will be returned; and class members who paid money, appeared in court, or had a judgment entered against them will be eligible for an additional monetary payment.
Name: Philemon v. Aries Capital Partners et al.
Dkt. #: No. 18 Civ. 1927 (2018 E.D.N.Y.)
Judge: Hon. Cheryl Pollak
Status: Settlement Pending Final Approval
Violations of the Fair Debt Collection Practices Act and New York Judiciary Law for, among other things: filing cases outside of the statute of limitations, illegally demanding attorney’s fees, failing to meaningfully review litigation documents before filing, and disclosing social security numbers in public court files.
- NYLAG filed the Complaint in March 2018.
- NYLAG moved for class certification in April 2018.
- In February 2019, NYLAG moved for approval of the classwide settlement, which would provide virtually complete relief for all the class’s claims.
- The Court granted preliminary approval to the Settlement.
- A fairness hearing will be held on October 1st, 2019.