A Bronx, New York man who is on life support due to COVID-19 was sued by a loan company after contracting COVID-19 and later hospitalized, the New York Post reported Monday.
Jeffery Schneider, who owns a rent-controlled building, applied for a loan in May 2021 after some of his tenants stopped paying rent due to the COVID-19 rent moratorium, according to documents filed by his wife, Cindy. Schneider, the NYP reported. Months later, Schneider was hospitalized with COVID-19 and put on life support. (RELATED: Why aren’t people paying their rent when there are billions in unspent federal aid?)
Schneider’s payments to Premier Capital Funding have ceased due to his illness, the NYP reported. After two days on life support, the company filed a lawsuit Dec. 1 against Schneider in Brooklyn Supreme Court.
The loan Schneider originally took out was for $23,000, of which he was able to repay $25,000, but still owes $58,000 due to the high interest rate, the NYP reported. Schneider’s family offered to pay a lump sum of $11,000 to help with the remaining debts, “they always rejected it. They wanted their fees,” family attorney Ashlee Colonna Cohen told the New York Post.
Premier Capital Funding reportedly filed another lawsuit against Schneider in Manhattan Supreme Court for $20,000, relating to the same loan, the NYP reported.
Cindy Schneider is now asking a judge to overturn a Jan. 4 default judgment that Premier obtained for $38,000 against Remie, according to the NYP. Cindy claims that on January 10, 2022, she discovered the default judgment when a check she had written to an employee of Remie Realty bounced because Premier froze her husband’s personal and business accounts to recover the 38,000 $.
Schneider’s wife, Cindy, told the NYP that he was “incapacitated, disabled and unable to protect his interests or appear in this action.” Her company, Remie Realty Corp., closed, leaving Cindy to deal with medical bills, attorney fees, and all related expenses since Schneider was the owner. (RELATED: EXCLUSIVE: As coronavirus crippled small businesses, some lenders surged)
“They are fully aware that Jeff is in this condition,” the family’s attorney told the NYP. New York state law prohibits default judgments against incapable persons, according to Cohen.
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