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Paterson councilman Jackson’s pay being garnished for defaulting on $140,000 loan | Paterson Times

Paterson councilman Jackson’s pay being garnished for defaulting on $140,000 loan

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Councilman Michael Jackson’s paycheck is being garnished for defaulting on a $140,000 business loan.

Jackson’s lender, the Paterson Restoration Corporation (PRC), obtained a court order in late December to collect on the defaulted loan.

10-percent of his gross weekly wage has to be withheld to pay back the loan. Jackson earns $41,213 as a councilman, according to payroll records.

Jackson declined to comment on Friday.

The Paterson Restoration Corporation gave him the loan $140,000 loan at 2.25-percent interest in 2009 to renovate his restaurant, Jacksonville, on Grand Street.

Jackson has explained in the past that the Great Recession battered his business causing him to default on the loan. At times, he has blamed the Paterson Restoration Corporation, an agency created by the municipal government in 1977 with $11.1 million in federal funds to give out loans to small businesses, by stating he was promised funds in matter of weeks, but took months before he could get his hands on the dollars.

Jamie Dykes, chairman of the Paterson Restoration Corporation, has been the subject of much of Jackson’s ire.

Jackson has attacked him at public forums.

Dykes declined to comment on Jackson’s pay garnishment on Friday.

The Paterson Restoration Corporation secured a judgment against Jackson on Jul. 21, 2017. It filed defective paperwork in court to move with pay garnishment. In some instances, the paperwork did not contain signatures. It finally filed correct paperwork in late last year. A judge issued a order for the wage garnishment on Dec. 27, 2018, according to court records.

The default rate at the Paterson Restoration Corporation has spiked over the past five years, said Dykes. He said the agency has been aggressively going after deadbeat borrowers.

Dykes said at present the Paterson Restoration Corporation has three pay garnishments to collect on defaulted loans. It also hired a debt collection firm, Williams Alexander & Associates of Wayne, to go after people who have defaulted on loans.

The default has haunted Jackson over the years. His political opponents have repeatedly attacked him for defaulting on the loan.

Jackson lost his bid for an at-large City Council seat in 2014 partly due to news of the default. In 2015, Jackson preemptively addressed his business woes at a debate before his opponents could attack him on television.

Jackson’s move worked. Voters elected him to represent the 1st Ward in a special election in 2015. He won re-election in 2016.

Email: jay@patersontimes.com

  • Chris

    How does this not disqualify him from being a government "official"?

  • Dominick Perez

    Nothing improper here lol.

  • MarquinhoGaucho

    Jackson has explained in the past that the Great Recession battered his business causing him to default on the loan. Really? or could it be that no one goes to fine dining in Grand St? Or that his target customer base arent big spenders, or $14 for some iceberg lettuce with bottled Italian dressing and a fried whiting might be more than people are willing to pay..

    • Dominick Perez

      Isn't he the one who goes around driving on a suspended license and then whines to the cop "Don't you know who I am?" when he gets pulled over?

      • Miss jamaica

        Same one. This who they elect to represent us .

      • Robert Tyler

        Yes, he is.

    • Dominick Perez

      Or that he's a political hack who has no business being on the City Council like the rest of the incompetents "running" the city?

    • Robert Tyler

      I am a paterson resident, a culinary aficionado and a lover of great bars, well made drinks, etc. I use to go to Jacksonville before it's timely demise. Didn't want to pile on then but this restaurant was poorly run. The interior was nice. The food service and consistency was uneven and poor. Sadly, the manager, who I think was michael's father, complained about customer loyalty when these guys continually dropped the ball as owners. I had a margarita served in a beer glass with orange juice. Horrible. They still sneak and use the space now. Could have been a Paterson mainstay. Lost opportunity.

  • Miss jamaica

    Finally someone acted. This is who we elect to represent us. He does not want to pay his bill and he had the nerve to float with the idea of running for mayor the other day.

    Paying your bill is a responsibility that we all share in this beautiful country
    Finally this is tax payers money please reimburse the tax papers. We are already rape enough.
    This is my opinion.

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