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Latest News
New Report Exposes Rampant Debt Collection AbusesFederal Judge Orders New York State to Move Adult Home Residents into Supported Community Housing
Adult Home Residents Await Decision on Suit Against Segregated Housing
MFY Honors Pro Bono Volunteers
MFY Supervising Attorney Ramonita Cordero Honored by the New York County Lawyers Association
New Report Exposes Rampant Debt Collection Abuses
Debt buying companies — a fast-growing segment of the debt collection industry — are engaging in systematic debt collection abuses that particularly target low-income New Yorkers and people of color, according to Debt Deception: How Debt Buyers Abuse the Legal System to Prey on Lower-Income New Yorkers, a report issued today by MFY Legal Services, Inc., Neighborhood Economic Development Advocacy Project (NEDAP), Urban Justice Center (UJC), and The Legal Aid Society.
The report finds that debt buyers in New York City routinely file meritless lawsuits against low- and moderate-income New Yorkers without having proof of their claims and without notifying people that they have been sued, as required by law. Debt buyers nevertheless prevail in more than 9 out of 10 cases, usually by obtaining automatic judgments in their favor when people sued do not appear in court — often because they have not been served by court papers and are unaware of the case filed against them. During an18-month period from 2006-2008, debt buyers extracted $1.1 billion in judgments against New Yorkers, the vast majority of whom resided in low-income communities and communities of color. The report also documents a strikingly uneven playing field, in which only 1% of people sued were represented by attorneys.
“MFY helps over one thousand New Yorkers whose lives have been upended by these egregious practices. But there are tens of thousands — frequently very low-income, elderly, or disabled individuals--who have no legal representation and cannot effectively defend themselves against the debt buyers unscrupulous collection tactics,” said Carolyn Coffey, Senior Staff Attorney at MFY Legal Services and contributor to the report. The report recommends the passage of the NYS Consumer Credit Fairness Act (S.4398-A/A.7558-A), which would prevent abusive debt collection lawsuits. The bill, sponsored by Senator Eric Schneiderman and Assemblymember Helene Weinstein, would address many of the problems described in the report. Click here for the full report.
Federal Judge’s Final Order: New York State Must Move All Adult Home Residents into Supported Housing in the Community
New York, NY -March 1, 2010 - In a stunning victory for New York adult home residents, Judge Garaufis of the Eastern District Court of New York ordered today in DAI v. Paterson that the State must afford all qualified adult home residents an opportunity to move into supported housing where they can receive mental health and social services in their own apartments and homes. The court’s order implements its prior finding that virtually all adult home residents are qualified to live in supported housing, a far more integrated setting than adult homes, and requires the State to develop sufficient supported housing units to ensure that all adult home residents can live in the most integrated setting appropriate, as required by the Americans with Disabilities Act and the Supreme Court’s decision in Olmstead v. L.C. [See story below.]
The judge rejected the much less far-reaching remedy proposed by the State, saying that it “scarcely begins to address the violations identified by the court” and that a “proposal that affords a remedy to only 23% of those individuals whose civil rights are currently being violated is grossly inadequate.”
The judge ruled “in order to rectify the violations found by the court, [state officials] must change the way they manage their mental health system so that [adult home residents] have a choice a real and meaningful choice to receive the services to which they are entitled in supported housing instead of an adult home.”
In doing so, the State must:
- Provide all qualified adult home residents the chance to move to supported housing within four years and ensure that appropriate services are in place that will “support [residents’] success as tenants and their integration into the community.”
- Create at least 1,500 supported housing units per year for three years, and create additional units as necessary after, to accommodate all current adult home residents and future individuals with mental illnesses being considered for adult home placement who would prefer to live in supported housing.
- Contract with supported housing providers to engage and educate adult home residents about their opportunities to live in their own housing with support services rather than in large, institutional adult homes. This education is necessary to overcome the fear and self-doubt that have been instilled in many residents during years of living in adult homes with no other options.
- Employ “Peer Bridgers” (individuals in recovery from mental illnesses who are trained to assist others making the transition) to assist current and future adult home residents wishing to move.
- Undergo the oversight of a court monitor to ensure the obligations are met.
“This remedy order is one step closer to a model mental health system, where supported housing is available in the community and where appropriate services are ready and available for those who need and want them,” said Jeanette Zelhof, deputy director of MFY Legal Services.
"The court's order will stop the unnecessary warehousing of people with mental illnesses in institutional adult homes. For decades, people who can live in the community and receive services there have been stuck in these dismal institutions, when living in their own apartments and receiving services there would both enrich their lives and save the state money," said Cliff Zucker, executive director of Disability Advocates, Inc. -
“This order will give current adult home residents and anyone at risk of becoming a resident in the future the opportunity to live with the freedoms that the rest of us take for granted every day,” said Jennifer Mathis, deputy legal director at the Bazelon Center for Mental Health Law.
“We are very pleased with Judge Garaufis’s order. His ruling confirms that systemic violations of people’s rights occur within the mental health system in New York and affords a justice that is long overdue for people living in adult homes,” said Roger Bearden, legal director New York Lawyers for the Public Interest.
The plaintiff in the case is Disability Advocates, Inc., an organization that protects the rights of people with disabilities. The defendants include the Governor of New York and cabinet-level officials. DAI is represented by MFY Legal Services, the Bazelon Center for Mental Health Law, DAI's own legal staff, New York Lawyers for the Public Interest, the Urban Justice Center and the law firm of Paul, Weiss, Rifkind, Wharton & Garrison LLP.
Click here for the judge's memorandum and order.
Federal Judge Orders New York State to Move Adult Home
Residents into Supported Community Housing
Decision Ends Decades of Warehousing People with Psychiatric Disabilities
New York, SEPTEMBER 8, 2009 - Federal Judge Nicholas G. Garaufis ruled that New York State’s practice of concentrating people with mental illness in large adult homes constitutes discrimination and violates the Americans with Disabilities Act and the Rehabilitation Act. In a ruling issued today, he found that “the overwhelming weight of the evidence demonstrates that Adult Homes are institutions that impede residents’ interaction with individuals in the community who do not have disabilities.” Although Judge Garaufis found that the plaintiff, Disability Advocates, Inc., is entitled to declaratory and injunctive relief, he has given New York State until October 23, 2009 to propose a plan that would remedy the unlawful segregation of adult home residents. Disability Advocates, Inc., has requested that New York State be required to develop no fewer than 4,500 supported housing beds for adult home residents. The decision in Disability Advocates v. Paterson is the culmination of years of litigation initiated by a consortium of advocacy organizations, including MFY Legal Services, Inc., Disability Advocates, Inc., the Bazelon Center for Mental Health Law, New York Lawyers for the Public Interest, the Urban Justice Center, and Paul, Weiss, Rifkind, Wharton & Garrison, LLP.
“With this decision, we now have hope of reversing the tide of institutionalization and isolation,” said Erica von Nardroff, a resident of Elm York Home for Adults. “Better housing choices will enhance our dignity and ability to recover.” Norman Bloomfield, who has lived at Surf Manor Home for Adults for seven years, said: “Once we are out of the restrictive setting of an adult home, we can live as individuals in the general community. This increased independence and responsibility will support our growth and promote fulfillment.” Ms. von Nardroff and Mr. Bloomfield are two of the thousands of adult home residents who are likely to qualify for supported housing under the ruling.
“The judge agreed that adult homes are institutional settings that provide little privacy and few real opportunities for people with mental illness to develop independent living skills and participate fully in the community. This ruling is a giant step forward in the effort to ensure that the state treats people with disabilities with respect and helps them develop their strengths instead of warehousing them in institutions,” said Kevin Cremin, a senior staff attorney at MFY Legal Services, who was a member of the team of attorneys who represented the plaintiff during a month-long trial before Judge Garaufis.
For the past 20 years, Jeanette Zelhof, founder and head of MFY’s Adult Home Advocacy Project, has led a team of lawyers to expose abuse and neglect to represent residents whose civil rights were violated. These conditions were documented in Broken Homes, a 2003 Pulitzer Prize-winning series in the New York Times that fueled calls for reform and prompted the lawsuit that resulted in Judge Garaufis’s ruling. “This ruling is a tremendous victory for adult home residents who can move on to a better life, outside the confines of these institutions where residents are subject to constant indignities and ostracized from the community.”
Click here to read Judge Garaufis’ decision.
Adult Home Residents Await Decision on Suit Against Segregated Housing
A trial began on Monday, May 11, 2009 in federal court to determine whether New York State’s policy of housing people with psychiatric disabilities in large adult homes violates the Americans with Disability Act (ADA). Adult home residents and their advocates contend that many adult home residents who are qualified and able to live in “supported housing” have been re-institutionalized in adult homes in violation of federal law.
The case, Disability Advocates v. Paterson, was filed in 2003 after The New York Times 2002 series, “Broken Homes,” exposed horrific conditions in the homes, including widespread violence, neglect, and abuse that led to the deaths of scores of residents. The Pulitzer Prize-winning series fueled public outrage and demands for reform.
“While the state has closed some of the most abusive homes, the root of the problem remains,” said Jeanette Zelhof, head of MFY Legal Services’ Adult Home Advocacy Project, which advocates for adult home residents in the city. “Although people with psychiatric disabilities are capable of living in less restrictive, supportive settings, the state continues to isolate them in adult homes, effectively re-institutionalizing people who should be part of the community.”
The trial lasted five weeks and plaintiffs presented testimony from expert witnesses, advocates, and residents themselves. If successful, the state will be required to secure supported housing for residents who are qualified to live in a less restrictive community setting. Currently, there are some 4,000 people with mental disabilities living in 21 adult homes in New York City.
In February, Eastern District Judge Nicholas G. Garaufis denied the state’s motion for summary judgment, rejecting claims that adult homes are not subject to the ADA and that Disability Advocates lacked standing. In addition to MFY Legal Services, attorneys from the Bazelon Center, New York Lawyers for the Public Interest, the Urban Justice Center and Paul, Weiss, Rifkind, Wharton & Garrison have joined forces to represent the rights of adult home residents.
The trial concluded on June 18, and a decision is likely before the end of the year.
Click here to read Judge Garaufis’ decision denying the state’s motion for summary judgment.
MFY Honors Pro Bono Volunteers
Over 200 pro bono attorneys representing 46 private law firms and corporate law offices were honored at MFY’s 2010 Pro Bono Recognition and Awards Breakfast, held on February 26 at Davis Polk & Wardwell in New York City. Volunteer attorneys participate in all of MFY’s programs and serve in a variety of ways. Over 100 attorneys were recognized for representing grandparents and others in adoption, guardianship and custody proceedings as part of MFY’s Pro Bono Kinship Caregiver Law Project. Other pro bono attorneys represent elderly and disabled clients in housing court and at administrative hearings, serve as guardians ad litem for clients with diminished capacity, and provide advice and counsel to clients at regularly scheduled Workplace Justice Clinics.
Paul, Weiss, Rifkind, Wharton & Garrison LLP received MFY’s Matthew G. Leonard Award for Pro Bono Excellence in recognition of the exemplary work done by its litigation team in Disability Advocates v. Paterson, the landmark ruling (described above) ordering New York State to provide supported housing in the community for current and future adult home residents with mental disabilities. Representing the team at the event were Anne S. Raise, Francine N. Murray, and Jonathan R. Bolton. Other team members included Andrew G. Gordon, Janna Berke, Gayle S. Gerson, Ankush Khardori, Liad Levinson, and Sandra Sheldon.
New York State Senator Eric T. Schneider received MFY’s Champion of Justice Award for his efforts to expand access to free legal services for low-income New Yorkers. As a result of his efforts to increase funding for free legal services, thousands of individuals and families were able to get help to prevent evictions, obtain and maintain public benefits, recover unpaid wages, address consumer problems, and resolve family matters.
MFY Supervising Attorney Ramonita Cordero Honored by the New York County Lawyers Association
Ramonita Cordero, Esq., Supervising Attorney for MFY’s Pro Bono Kinship Caregiver Law Project received the New York County Lawyers Association Public Service Award at a ceremony on September 25, 2008. Ms. Cordero was recognized for outstanding work in developing a new program to address a critical unmet legal need for low-income New Yorkers. Beginning with a handful of participating firms in 2006, the Pro Bono Kinship Caregiver Law Project has trained hundreds of attorneys to represent grandparents and others who are caring for related children in custody, guardianship, and adoption cases. Over 100 families have already received assistance, bringing greater permanency and stability to the lives of the children involved.
MFY Plays Leadership Role in Landmark Legislation that Protects Elderly, Disabled, Veteran, and Lower Income New Yorkers from Abusive Debt Collection
MFY took a leading role in efforts by a coalition of advocacy organizations across New York State to press for passage of the Exempt Income Protection Act, sponsored by Senator Dale M. Volker and Assembly Member Helene E. Weinstein. The act shields elderly, disabled, veteran and lower income New Yorkers from unlawful practices by debt collectors and takes effect January 1, 2009. The new law closes a loophole that has allowed debt collectors and credit card companies to use “restraining notices” to freeze the bank accounts of New Yorkers who receive income that is exempt from debt collection under federal and state law, such as Social Security, veterans’ benefits, disability, and pension. The law ensures that the first $2,500 in an account which contains directly deposited exempt income cannot be restrained.
MFY Staff Attorney Carolyn Coffey worked tirelessly on the effort to pass the new legislation and has been active in citywide efforts to protect consumers from unscrupulous debt collectors. In June, 2008 she shared her experience with defending clients in Civil Court at the New York City Consumer Debt Working Conference, held at the Feerick Center for Social Justice at Fordham Law School, and sponsored by Fordham and the Justice Center of the New York County Lawyers’ Association.
Click here for the MFY News Archive.