7 Options to defend a debt collector’s lawsuit

By: on 2020-09-29
Ask Sanders Patricia
7 Options to defend a debt collector’s lawsuit
7 Options to defend a debt collector’s lawsuit

Have you recently received any official court letter? Has a debt collector recently threatened you to sue in the court with a debt collector lawsuit?

My dear friend, this article is written to depict ways about what to do when you are being sued by a debt collector.

First of all, be sure what is meant by a debt collector

The debt collectors work for a debt collection agency. They are assigned with the duty of collecting due outstanding balance from the borrowers and then sending the collection to the original creditor.

Some debt collectors even buy unpaid debts on discount from the creditors and try to collect the debts by their own methods. The more they can, the more is their profit.

That is why the FDCPA (Fair Debt Collection Practices Act) has stipulated the ways a debt collector can collect the debt from a borrower.

Take a look at how you can fight back against a debt collector and win the case against them in the court

  • The IBISWorld Report says there are about 7,060 debt collection agencies operating in the USA presently.
  • The IBISWorld Report has said that the debt collection market is continuously ballooning. The current market size in 2020 is about $13 billion.
  • A CFPB or Consumer Financial Protection Bureau report says that one-third of the total complaints they receive is against the debt collectors.

You can easily guess from these 3 statements that how much active the debt collection agency is in the US market. You can guess too about the desperateness of the debt collectors to recover the due amount.

Have a look at the options you can use to defend a lawsuit filed by them

1. You may file a bankruptcy case as an answer to their lawsuit

Bankruptcy may be the right option for you if you are not in the position to pay off the debt. The benefit of appealing for bankruptcy is that an automatic stay will occur when you will file the petition. All the debt collection activities will be ceased and desisted after you receive the stay order from the court.

2. Use the Statute of Limitations or SOL strategy

The Statute of Limitations is your other weapon to fight against the debt collectors after being sued by a collection agency. The SOL or Statute of Limitations is nothing but a time limit beyond which no debt collector will be able to collect the unpaid loan due from you.

First of all, verify the SOL limit of the debt in your state. Review the case and think about how you can defend it. At the time of trial, present your defense before the jury.

You can take a lawyer’s help too regarding the right way about using the SOL law in your favor and to defend you in the court.

3. You have the right to ignore the lawsuit if the summons and complaints were not properly served

The debt collection lawyer must serve you with a summons and a copy of whatever complaint or petition that was filed against you. You have the complete right to ignore the creditor’s lawsuit if it is not properly served. The complaint against you can not be proceeded forward by the debt collectors.

4. Make a countersuit against the debt collector’s lawsuit if they violet the stipulated law

The FTC or Federal Trade Commission has stipulated the law for the third party debt collectors. The law explains how many times a debt collection agency can call a borrower per day and the FDCPA law also stipulates the time when the debt collectors can call the borrower for the unpaid balance. There are many other FDCPA laws which the debt collector has to follow.

The FTC has given you every scope to defend your rights if the creditors do not obey the FDCPA act.

5. Adopt the wait and watch policy so the debt collectors can prove that they are claiming everything right in the case

Usually, when the debt collectors purchase a due debt, it has already changed a few desks and hands. So, it won’t be very unusual if the debt collection agency cannot produce the original agreement paper to you.

If the debt collector cannot produce all the original documents of your due debt, the judge will decide in favor of you and against the debt collection lawsuit.

So, you can adopt the wait and watch policy when sued by a collection agency in such a case; it is the opinion of the financial experts.

6. Do not hesitate to claim in the court if you are a victim of credit card fraud

The credit card fraud statistics report by SHIFT claims that the USA is the most credit card fraud prone country all over the world. It observes nearly 40% of credit card fraud cases every year.

So, you can claim against it if you are sued in the credit card unpaid debt payment case and you think you are the victim of fraudulent identity, theft, or stolen credit card.

7. You can hire an attorney who will defend the lawsuit filed against you by the debt collector

Usually, the lawyers, who deal in consumer cases, take either a flat fee or an hourly fee.

Have a look at what kind of benefits you are going to get from them:

  • The attorney can fight for you in the SOL case: You may know every state has its SOL or Statute of Limitations period. It is only the attorney who can fight for you if the SOL is over.
  • The attorney can fight for you in the credit card fraudulent case: You may be a real victim of a credit card fraud case like identity theft or credit card stolen case.

    But proving your plea in the court is not as easy as you are thinking. That is why you need a lawyer who will defend you against the debt collector harassment lawsuit to prove that you are a victim of the credit card cheating case.

  • Some people feel distressed and think day and night that oh, I received a summons from a debt collector, so what to do now? Do not worry, just keep calm and face the situation bravely. You can take the help of a debt settlement attorney too if such a situation arises before you.

    Last Updated on: Tue, 29 Sep 2020

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