What happens when you get sued by a debt collector?

But over the decades I’ve been helping people with problem debt, and there is one constant that needs fixing. When people are sued by a debt buyer or debt collector over an old debt, rather than show up and defend themselves they stick their head in the sand and lose by default.

Are there laws that limit what debt collectors can say?

All debt collectors must follow the Fair Debt Collection Practices Act (FDCPA). This can include lawyers who collect rent for landlords. Starting on May 3, 2021, a debt collector may be required to give you notice about the federal CDC eviction moratorium. Learn more about your tenant and debt collection rights.

What should I do if I get contacted by a debt collector?

Be careful about how you respond to debt collectors. Although it’s your right under the Fair Debt Collection Practices Act to write a letter to a debt collector stating you don’t wish to be contacted, this could potentially cause more harm than good.

What should I not share with a debt collector?

Please do not share any personally identifiable information (PII), including, but not limited to: your name, address, phone number, email address, Social Security number, account information, or any other information of a sensitive nature.

But over the decades I’ve been helping people with problem debt, and there is one constant that needs fixing. When people are sued by a debt buyer or debt collector over an old debt, rather than show up and defend themselves they stick their head in the sand and lose by default.

All debt collectors must follow the Fair Debt Collection Practices Act (FDCPA). This can include lawyers who collect rent for landlords. Starting on May 3, 2021, a debt collector may be required to give you notice about the federal CDC eviction moratorium. Learn more about your tenant and debt collection rights.

Where can I get a letter from a debt collector?

You can find free templates to use online, such as this one for Massachusetts lawsuits. This letter serves two purposes. First, it is requesting that the debt collector provide documentation that proves they have a claim to collect the debt.

Can a credit card company beat a debt collector?

And, seeing as most credit card companies don’t keep copies of all account signup documentation and virtually never provide that to the debt collector, this alone could win the case for you if the plaintiff is unable to meet the request. The second purpose is to show the plaintiff that you are playing hardball and won’t just rollover and pay.

What happens if you get sued by a debt collector?

If you’ve had debt in collections for a long time, you could be sued by the debt collector. Ignoring or losing the lawsuit can have severe consequences. Here’s what to do. If you’ve had debt in collections for a long time, you could be sued by the debt collector. Ignoring or losing the lawsuit can have severe consequences.

How long does it take to respond to a debt collection lawsuit?

Generally, you’ll get around 20 to 30 days to file a written answer to the lawsuit with the court.

What happens if a debt collector fails to send a written notice?

Debt collectors might also fail to send the legally required written notice of your debt. If they don’t send a written notice that spells out the amount of your debt, the name of the original creditor, and a statement that tells you how you can dispute the debt, they’ve broken the law.

Is it legal to sue someone for debt?

When you face a lawsuit, it can feel like the law is stacked against you, but that’s not always the case. In fact, there’s a law in place to ensure that debt collection occurs in a (relatively) ethical fashion: the Fair Debt Collection Practices Act.

Can a debt collection lawsuit be settled before trial?

And it isn’t uncommon for lawsuits to settle before going to trial, especially if the amount of money in dispute is not a huge sum. A debt collection lawsuit can potentially be resolved with debt settlement. You can make a payment plan with the creditor to pay off the sum of the debt or partially pay the sum in a lump-sum settlement.

What to do when a collection agency sues you?

For example, if a collection agency is suing you for $4,000 related to a credit card account, you should ask for documentation that starts with the opening of your account and ends with the last activity on the account. The goal is to demand that they account for every dollar they say you owe by showing:

What happens when you get served with a lawsuit?

Hearing the words “you’ve been served” is a dreaded thing. It can feel overwhelming to be served with a lawsuit, especially if you’re being sued for unpaid debts. A lot of people face debt problems at some point in their lives.

What to do if you are sued by a debt collector?

When people are sued by a debt buyer or debt collector over an old debt, rather than show up and defend themselves they stick their head in the sand and lose by default. I completely understand how the thought of having to go into court to face someone suing you is a difficult emotional experience.

And it isn’t uncommon for lawsuits to settle before going to trial, especially if the amount of money in dispute is not a huge sum. A debt collection lawsuit can potentially be resolved with debt settlement. You can make a payment plan with the creditor to pay off the sum of the debt or partially pay the sum in a lump-sum settlement.

What happens if a debt collector sues you outside of the Statute of limitations?

If your debt collector has sued you outside of the statute of limitations on your debt, then you have an easy out when you go to court. All you have to do is prove that your debt is outside the statute and the judge should drop the case more or less immediately.

Is it possible to dismiss a debt collection lawsuit?

Because accounts often change hands multiple times before a lawsuit occurs, it’s not uncommon for this type of documentation to be impossible for creditors to drum up in a timely manner. That can result in a dismissal of the lawsuit or an agreement for a settlement at a much lower total.