what type of lawyer to sue collection agency

Full Answer

How long before a collection agency will sue?

A collection agency may even be able to sue you for an outstanding balance. Some debts become time-barred after a certain amount of time. This time period, known as the statute of limitations, depends on the type of debt you have and varies by state. For the majority of debts, the time period ranges from three to six years.

How to sue your creditors or collection agencies?

can use the debt collector's violations to your benefit when negotiating a settlement. sue the collector for damages, or. file a complaint with the CFPB, which monitors debt collectors with more than $10 million in annual receipts, or with the FTC.

How to find a lawyer to sue a debt collector?

Part 1 of 4: Gathering Evidence of the Abuse Download Article

1. Identify abusive practices. Federal law strictly limits what a debt collector can do when collecting a debt.
2. Keep a log of phone calls. You should always write down the day and time of any phone call. ...
3. Tell the collector to stop. You should tell the debt collector to stop calling you. ...
4. Gather proof of injury. ...

When to hire a debt collection attorney?

• allow the creditor to obtain a judgment against you (called a "default judgment")
• defend the lawsuit yourself, or
• hire an attorney to represent you in the lawsuit.

How do I fight a collection agency and win?

Here are a few suggestions that might work in your favor:Write a letter disputing the debt. You have 30 days after receiving a collection notice to dispute a debt in writing. ... Dispute the debt on your credit report. ... Lodge a complaint. ... Respond to a lawsuit. ... Hire an attorney.

Can you sue for being wrongfully sent to collections?

Yes, the FDCPA allows for legal action against certain collectors that don't comply with the rules in the law. If you're sent to collections for a debt you don't owe or a collector otherwise ignores the FDCPA, you might be able to sue that collector.

Can you dispute a debt if it was sold to a collection agency?

Within 30 days of receiving the written notice of debt, send a written dispute to the debt collection agency. You can use this sample dispute letter (PDF) as a model. Once you dispute the debt, the debt collector must stop all debt collection activities until it sends you verification of the debt.

Can you sue a creditor for inaccurate reporting?

Under the Fair Credit Reporting Act (FCRA) (15 U.S.C. § 1681 and following), you may sue a credit reporting agency for negligent or willful noncompliance with the law within two years after you discover the harmful behavior or within five years after the harmful behavior occurs, whichever is sooner.

Can I dispute a collection that is mine?

If you have inaccurate or incomplete collection accounts on your credit report, the Fair Credit Reporting Act gives you the power to dispute this information directly with the credit bureaus or creditor. You can send a dispute using the dispute form on each credit bureau's website.

What is a 609 dispute letter?

A 609 dispute letter is a letter sent to the bureaus requesting this information is actually not a dispute but is simply a way of requesting that the credit bureaus provide you with certain documentation that substantiates the authenticity of the bureaus' reporting.

How do I challenge a collection agency?

Your dispute should be made in writing to ensure that the debt collector has to send you verification of the debt. If you're having trouble with debt collection, you can submit a complaint with the CFPB online or by calling (855) 411-CFPB (2372).

What is a goodwill deletion?

The goodwill deletion request letter is based on the age-old principle that everyone makes mistakes. It is, simply put, the practice of admitting a mistake to a lender and asking them not to penalize you for it. Obviously, this usually works only with one-time, low-level items like 30-day late payments.

What to do before sue collector?

Before you decide to sue the collector or try to work out a settlement, be sure to consider all options, like filing for bankruptcy. A lawyer can go over all of your potential options with you. Talk to a Bankruptcy Lawyer.

What are the physical issues that a collector has?

any physical issues you've had—like nausea, fatigue, headaches, or loss of sleep —due to the collector's actions and whether you sought help from a doctor. any out-of-pocket losses you've sustained, like lost wages or income, because you took time off from work to try to resolve the dispute, and.

What happens if you settle debt for less than you owe?

Tax Consequences of Settling a Debt for Less Than You Owe. The IRS generally considers canceled debt of $600 or more as taxable, and settling debts for less than what's owed can increase your tax liability depending on your tax bracket and the canceled amount. Consult a tax professional for more information.

Can debt collectors use FDCPA?

Debt collectors know that an FDCPA lawsuit can be expensive to defend and could result in a judgment against them. So, you might be able to use FDCPA violations as leverage in debt negotiations. A lawyer can analyze your evidence and let you know how much leverage you have, and help you negotiate settlements if you need assistance.

Do lawyers work for free?

Some lawyers take on a certain number of pro bono cases (meaning the lawyer works for free) to help people who have little or no income or based on other factors. Your state bar association can also tell you if a lawyer might be willing to assist you on a pro bono basis.

Can you decide on a lawyer solely from someone else's recommendation?

But don't decide on a lawyer solely from someone else's recommendation. Different people will have different responses to a lawyer's style and personality; don't make up your mind about hiring a lawyer until you've met the lawyer, discussed your case, and decided that you feel comfortable working with that lawyer.

Can a collector talk to a lawyer?

Under the FDCPA, once you've hired a lawyer, a collector must talk to your attorney only—not you—unless you give permission to contact you or your lawyer doesn't respond to the collection agency's communications. Here are some potential ways to find a lawyer, discussed in more detail below:

What is the Fair Debt Collection Practices Act?

The Fair Debt Collection Practices Act (FDCPA) was enacted to protect consumers, like you, from unscrupulous tactics by debt collection agencies and debt collectors. The FDCPA sets specific standards and guidelines for those who are collecting a debt. For example, calls cannot be made before a certain time in the morning or after a certain time ...

Can you sue a collection agency?

Suing a Collection Agency in State Court. You do have the right to file a lawsuit in state court. You must prove that there were illegal practices employed and that the debt collection agency violated the FDCPA. If your lawsuit is successful, you could get $1,000 in statutory damages.

Can debt collectors threaten you?

Debt collectors cannot threaten you with physical harm or threaten you with lawsuits that they don’t intend to pursue. There are strict penalties for those who violate the FDCPA and you can pursue legal action against violators. Which kind of action you take is dependent on your situation and your goals, but you may need a lawyer ...

What is a debt collection lawsuit?

A debt collection lawsuit begins when the collection agency files a “complaint” (sometimes called a “petition”) in court. The complaint will explain why the collector is suing you and what it wants—usually, repayment of money you owe, plus interest, fees, and costs.

What happens if a collector gets a judgment against you?

Once the collector gets a money judgment against you, you might face wage garnishment, a bank account levy, or a lien on your property.

What is discovery in a lawsuit?

“ Discovery ” refers to the formal procedures that parties in a lawsuit use to get information and documents from each other to prepare for trial or settle the case. If you don’t raise any defenses or counterclaims, the collector probably won’t engage in discovery. But if you have a good defense or file a counterclaim, you and the collector might want to participate in discovery.

How long does it take to file a lawsuit?

Generally, you’ll get around 20 to 30 days to file a written answer to the lawsuit with the court. You’ll have to respond to the allegations in the complaint and raise any defenses you have, like that the statute of limitations (the law that sets a time limit on the right to file a lawsuit) has expired, or counterclaims against the collector, such as violations of the Fair Debt Collection Practices Act.

How to challenge summary judgment?

To challenge a summary judgment motion, you’ll have to file paperwork opposing the motion. If you don’t, you’ll probably lose. Because the outcome of the lawsuit is at stake, you should seriously consider consulting with a lawyer, if you haven't already, if the collector files this kind of motion.

What happens if a collector grants a motion?

If the judge grants the motion, the court will enter a judgment against you without a trial.

What happens if a collector files a summary judgment?

If the judge grants the motion, the court will enter a judgment against you without a trial.

How debt collectors get involved

When you stop paying a bill, you will usually deal directly with the internal collections department of your creditor — the party to whom you owe money — for the first 3-6 months. After that period, a collections agency may become involved if:

Assigned vs purchased debt

If your creditor is unable to collect the debt directly from you, they will then assign your debt to an external collection company. With an assignment, the lender still owns the debt, which means you still owe the money to the creditor, not the collector.

Understanding the Fair Debt Collection Practices Act (FDCPA)

Once a collection agency has purchased or been assigned a debt, they can contact you through any medium — including text, email, phone, and mail — in an attempt to collect. However, a federal law known as the Fair Debt Collection Practices Act restricts how collectors may interact with you and what they can say.

Tips for dealing with debt collectors

Dealing with a collections company can be intimidating, especially if you don't know your rights. What you say when speaking to a debt collector can have significant financial and legal consequences, so make sure you're prepared.

When collectors are likely to sue a debtor

If you don't pay your debts, collectors will continue to contact you, your credit will suffer (the debt will linger on your report for 7 years), and the collector may eventually sue you.

What to do if you're sued by a collection agency

The collector will serve you with a notice of the lawsuit, and you need to respond either yourself or through your lawyer by the date listed on the notice. Otherwise, collectors can obtain a default judgment against you, meaning they automatically win the suit.

What to do if you are sued for debt collection?

If you are part of a legal case involving debt collection, you may want to hire a debt collection attorney. A lawyer with experience in debt collection can help fight for your rights as a consumer, defending you against a debt collector or creditor. Conversely, if you have successfully sued someone but still haven't been paid, ...

How many debt collection lawsuits were filed in 2010?

According to WebRecon, a record breaking 12,000 debt collection lawsuits are expected to be filed in 2010, up from 9,300 in 2009 and 4,400 in 2007.

What to do if you are sued and still awaiting payment?

If you have sued someone successfully and still are awaiting payment, you may require the services of a debt collection attorney. There are different debt collection regulations and procedures that a debt collection lawyer can use to most effectively get your money.

How long does it take to get a collection agency to sue you?

The time period can vary from state to state, but it’s generally between four and six years. If the last time you were active exceeds this threshold, the debt is time-barred, and the collection agency isn’t allowed to sue you for it.

What does a collection agency do?

Collection agencies typically buy debt from creditors that have given up on trying to collect. They buy these debts for a fraction of the total balance and then try to collect the full amount from you.

How to respond to a summons for credit card debt?

Here’s how to respond to a court summons for credit card debt, as well as other types of debt: Avoid waiting until the last minute in case of delays. File your response with a legal brief called an Answer with the court clerk. Do not admit liability.

How long does it take to get a copy of a court summons?

Send the copy via certified mail to the collection agency. You’ll typically have between 20 and 30 days to respond to a court summons, but make sure you check the paperwork to get the actual date. Remember, if you don’t respond, you can’t win a debt collection lawsuit against you. 2.

What to do before filing for bankruptcy?

Before you consider bankruptcy as an option, consult with an attorney who can help you determine the proper course of action. Also, it’s important to understand how bankruptcy can impact you in the long term. While it can provide immediate relief, you may be required to sell some of your assets to pay what you can.

What happens if you don't respond to a collection agency?

If you don’t respond, the court may issue a default judgment.

Who is Tayne Law Group?

Since 2001, Tayne Law Group has helped countless clients resolve their debts for a fraction of their original amount. Our in-depth knowledge of debt settlement and creditors has enabled us to develop a debt relief process that’s truly effective.

What To Expect When a Debt Collector Is Pursuing You

The process can be overwhelming. You get call after call, letter after letter demanding payment. You get a shiver up your spine whenever the phone rings; you dread checking the mail because of what you may find. This can cause a lot of anxiety, to say the least.

What Is The Fair Debt Collection Practices Act?

Congress believed that many debt collectors engaged in abusive, deceptive, and unfair debt collection practices. In its view, these practices contributed to personal bankruptcies, marital instability, the loss of jobs, and generally invaded consumers' privacy. So it passed a law to stop this behavior.

When You Can Sue: Prohibited Conduct by Debt Collectors

The FDCPA generally prohibits debt collectors from doing all sorts of harassing things, including:

Reasons to Sue: Common Claims Brought Against Debt Collectors

Consumers who choose to sue debt collectors and debt collection agencies typically assert the following claims:

Common Defenses a Debt Collector Might Raise in a Lawsuit

Debt collection agencies are sophisticated. And most are not stupid. They know they might get sued, so they generally have practices designed to minimize exposure. These include robust compliance management systems and high standards for preserving records of debts they have purchased.

If You Sue You May Be Able to Recover Damages

If a debt collector or a debt collection agency violates this law, you may be entitled to recover monetary damages. These include your actual damages, statutory damages up to $1,000, and, if you win, costs and reasonable attorney fees. You cannot get punitive damages (those are damages designed to punish a wrongdoer).

To Sue or Not To Sue: What Should You Do?

If you are being harassed by a debt collector, there are steps you should take. Maintain records of all contacts, whether they take place at home or at work. Record calls. Save any voice mails. Keep all texts and emails. You want to have proof in case you do decide to speak with a lawyer.

What to do if a collection agency sues you?

The worst thing to do if a collection agency sues you is to ignore the lawsuit. Ignoring a lawsuit summons can hurt you in the long run, even if the debt is time-barred. If you’re sued for a debt that’s outside the statute of limitations, you may be able to have the lawsuit dismissed if you have proof that the debt is no longer enforceable.

How to stop a debt collector from suing you?

The best way to prevent a debt collector from suing you is to pay the debt or make arrangements to pay the debt.

How long can a collection agency sue you for an outstanding debt?

This time period, known as the statute of limitations, depends on the type of debt you have and varies by state. For the majority of debts, the time period ranges from three to six years.

What happens if you don't show up in court?

However, failing show up in court gives the collection agency a chance to win a default judgment against you. This means the court has ordered you to pay the debt. A collection agency who wins a judgment against you may be able to ask the court for permission to garnish your wages or levy your bank account.

Can a collection agency sue you for a judgment?

If a collector wins a judgment against you, they may be able to get any amount of income you do have. Even if a collection agency can no longer sue you, they can still make efforts to collect the debt from you. That includes calling you, sending letters, or reporting the debt to a credit bureau if the debt is within the credit reporting time limit.

Do attorneys serve lawsuits?

Note that a lawsuit summons is an official document sent by the court and must be served in a certain manner, depending on the laws in your state.

Do you have to pay a third party collection agency?

Many people think they have no obligation to pay a third-party collection agency. After all, it’s not the original company you created the debt with. Once you default on the original credit agreement and the business sells the debt to a collection agency, that agency has the right to collect on that debt — assuming the collector operates legally.

How to stop harassment from debt collectors?

If you are looking for a solution to stop harassment from a debt collector, the first thing to consider is, do you actually owe the debt? Do you have excessive debt? If this is the case, the first place to look for help should be a nonprofit credit counseling agency. They can give you some good unbiased options. If necessary, the credit counseling agency will recommend bankruptcy. If you have a simple straight forward bankruptcy case, you may be eligible to use Upsolve's free tool to file your own Chapter 7 bankruptcy. For more complicated cases, you will need to contact an experienced bankruptcy attorney in your area.

What to do if you don't owe a debt?

If you do not owe the debt, you should tell the debt collector. If they sue you, fight it in court or they will get a default judgment. The first thing to do is to file an answer to the complaint that the collector filed with the court. Then, demand proof of the amount of the debt. If it is a debt-buyer that's suing you, demand proof that the debt-buyer actually owns the debt. Demand proof that an old debt is not a time-barred debt due to the statute of limitations. With statutes of limitations, it's important to understand the time period for the statute along with the time frame. The problem with time frames is that it's sometimes difficult to tell what event caused the statute of limitations time period to begin to run. The creditor will need to have the documents necessary to prove these things. If the creditor fails to prove all these factors, ask the judge to dismiss the case. Usually, the case will not go your way, but you would be surprised how often lawyers come to court unprepared and are unable to prove their case. If you believe you have a good case, you might want to hire an attorney. If you cannot afford an attorney, you may want to check with legal aid.

What happens when a debt buyer buys a debt from the original creditor?

When the debt-buyer buys the debt from the original creditor, they gain the same right to collect the debt as the original creditor. They will often hire an attorney to attempt to collect for a contingency fee. If the attorney fails to collect this way, the attorney may sue you.

Can a collection agency sue you?

Some debt collectors can sue you and others cannot . The distinction depends on the type of debt collection agency you're dealing with. Some collection agencies are paid a contingency fee to represent the original creditor and try to collect the debt. The more these collection agencies collect, the more they receive in payment from the original creditor. These collection agencies cannot sue because they do not own the debt. But, they may send the unpaid debt back to the original creditor who may sue you. Sometimes, a law firm will act as a contingency based collection agency. When a law firm is attempting to collect from you, they cannot sue you in their own right but can sue you on behalf of their client, the original creditor.

Can you sue someone for not paying a debt?

Another commonly used collection tactic is to report your refusal to pay a debt to the credit bureaus. Each of these negative reports will harm your credit score. If the notations put on your credit report are inaccurate, you may be able to sue them under the Fair Credit Reporting Act (FCRA).