Business loan

Company sues Covid-positive US man on life support for business loan

An American man ‘fighting for his life’ with Covid on a ventilator in hospital has been dealt a blow after being sued over a business loan.

An American homeowner clinging on to life thanks to Covid-19 has been slapped by two lawsuits over a high-interest $23,000 ($A32,500) loan he was forced to take out for a rent moratorium linked to the pandemic, according to a new lawsuit.

Loan company Premier Capital Funding LLC is tracking Jeffrey Schneider – who is on life support – to repay US$58,000 (A$81,900) for the loan he took out in May through his company Remie Realty Corp , according to court documents. filed by Mr. Schneider’s wife.

the New York Post reports that Mr. Schneider, the owner of a rent-controlled building in the Bronx, applied for the $23,000 ($A32,500) lifeline when his struggling tenants stopped paying rent, according to the filing of the court.

He managed to repay US$25,000 (A$35,300) of the total roughly US$35,000 (A$49,400) he owed on the high-interest loan before the coronavirus killed him.

“This debt which began with the merchant [Remie] receiving US$23,000 (A$32,500) has now exploded into a debt of US$85,000 (A$120,100),” Schneider family attorney Ashlee Colonna Cohen said. The post office.

“He’s already paid $25,000 (A$35,300) for it and they keep asking for more.”

Mr Schneider’s wife, Cindy Schneider, said the virus had left him “on a ventilator and extracorporeal support (ECMO machine)”, according to an affidavit filed last month.

Schneider – who is fully vaccinated – is “fighting to [his] life,” his family said through Ms. Colonna Cohen.

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The New Jersey resident has fallen on hard times during the pandemic as the state’s eviction moratorium has allowed many of his tenants to stop paying their rent, leaving him without any recourse and “severely hampering [his company’s] ability to generate income,” the wife’s affidavit explains.

Ms Schneider said she was unaware that her beleaguered husband was ‘looking for extremely high-interest, short-term loans called ‘merchant cash advances’ to deal with the shortage of funds’ – including that of Premier which he would have to repay to the tune of US$35,750 (A$50,500) under the settlement, according to the court document.

Mr Schneider came down with Covid-19 in early November and landed in hospital on November 7, where he has remained since, the affidavit states.

He was placed on life support on November 29, and Premier sued in Brooklyn Supreme Court two days later when his payments stopped.

The family offered to pay the remaining US$11,000 (A$15,500) of the debt “in one lump sum and they still rejected it. They wanted their fees,” Ms. Colonna Cohen said.

Ms Schneider is now asking a judge to overturn a January 4 default judgment that Premier obtained for US$38,000 (A$53,700) against Mr Schneider as he is ‘incapable, disabled and unable to protect his interests or to appear in this action”. and since he allegedly only received court summonses via email that Ms Schneider did not see at the time, the affidavit states.

Ms Schneider says she only discovered the default judgment on January 10, when a check she had written to an employee of Remie Realty bounced because Premier had frozen all of her husband’s personal and business accounts to recover the US$38,000 (A$53,700).

An additional charge of US$5,000 (A$7,000) is expected to be levied at the city marshal’s office due to the prime minister’s tax on the accounts, according to court documents.

Premier also filed a second lawsuit against Remie in Manhattan Supreme Court for an additional US$20,000 (A$28,200) under the same loan. Ms Colonna Cohen says she is considering filing papers seeking to overturn the judgment that was also filed in the case.

Ms Colonna Cohen called the second case, which was filed two days after the Brooklyn one, a ‘double dipping’ and accused the company of filing it in another county ‘to avoid being detected as a double judgment “.

Meanwhile, Remie Realty has closed and Ms Schneider is ‘unable to pay Jeffrey’s medical bills and (attorney’s) fees’ – in addition to the bills, utilities and payroll he owes as the owner, the affidavit states.

“I implore the court to reverse the levy, rescind the restrictions on the accounts and order the Prime Minister to compensate the defendants for all sums taken under the default judgment,” the affidavit reads.

New York law does not allow default judgments against incapable persons and Premier was supposed to notify the judge when he found out about Mr Schneider’s condition, Ms Colonna Cohen wrote in court documents.

“Instead of ceasing collection activity and notifying the court of (Mr. Schneider’s) incapacity, (the Prime Minister) immediately directed the New York Marshal to collect the default judgment amount,” Ms. Colonna Cohen said in her filing.

“They are fully aware that Jeff is in this condition,” the attorney said. The post office.

A lawyer for Premier did not respond to a request for comment.

This article originally appeared on the New York Post and has been reproduced with permission