Users' questions

Will collection agencies take you to court?

Will collection agencies take you to court?

A collection agency is only allowed to contact you to tell you what they will do next. For example, they may say they will sue you in court or that they won’t contact you again. Remember, you still owe the money even if they stop contacting you. They can sue you to try to collect the debt you owe.

Do collection agencies sue for small amounts?

This is probably one of the most common questions we see is whether a collection agency will sue for just $5,000 or less. The answer is often that it depends on the collection agency. I have also seen that a collection agency may not sue for much more than that amount.

Can a Discover card collection agency show up in court?

If your debt was on old Discover card, you can pretty much bank on the fact that the collection agency will show up to court with your original signed contract in tow.

How does a debt collection agency dismiss a lawsuit?

1. You recieve a summons from the collector. 2. You respond to the summons and show up in court. You demand proof that you owe the debt. 3. The collection agency requests time to come up with proof. 4. The collection agency cannot find proof. The judge dismisses the lawsuit. Game over.

What to do if a debt collector beats you in court?

If you lose that edge, the debt collector can win and get access to garnish wages or withdraw funds from your bank account. Instead, remain calm and professional and focus your case on questioning the documentation that proves the debt is yours.

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When do creditors turn your case over to a collection agency?

If so, chances are you have not made a payment on your credit cards in over 3 months and now your creditors have turned your case over to a collection agency. Now, instead of getting constant phone calls from your creditors, you are getting phone calls from some collection agency trying to collect on this debt.

Can a creditor sue a collection agency in Small Claims Court?

If the violations are severe enough, the creditor may stop the collection efforts. If the violations are ongoing, you can sue the collection agency (and the creditor that hired the agency) for up to $1,000 in small claims court for violating the FDCPA.

If you lose that edge, the debt collector can win and get access to garnish wages or withdraw funds from your bank account. Instead, remain calm and professional and focus your case on questioning the documentation that proves the debt is yours.

What to do if a collection agency violates the FDCPA?

If the violations are ongoing, you can sue the collection agency (and the creditor that hired the agency) for up to $1,000 in small claims court for violating the FDCPA. You probably won’t win if you can prove only a few minor violations. If the violations are outrageous, you can sue the collection agency and creditor in regular civil court.

Can a collection agency take legal action?

Creditors have the right to start legal action proceedings to recover the money you owe – in other words, they can sue you for the debt. If they do, these legal proceedings will be civil rather than criminal, and will have nothing to do with the police or the possibility of jail.

What happens when collections takes you to court?

When you respond or “answer” the lawsuit, the debt collector will have to prove to the court that the debt is valid and that you owe the debt. If you ignore a court action, it’s likely that a judgment will be entered against you for the amount the creditor or debt collector claims you owe.

Can a collection agency have an outside attorney?

Collection agencies that do not have an in-house law office are hesitant to refer to outside attorneys because they will earn less and may have to charge their clients a higher contingency rate. Our in-house law firm does not file lawsuits.

Is there a law firm that does judgment collection?

Our in-house law firm does not file lawsuits. Instead, we have developed a nationwide network of collection attorneys who specialize in litigation and judgment collection in their jurisdictions. Our attorneys manage these independent law firms throughout the litigation and judgment collection process.

When does a debt collection agency Sue You?

While each case is a little different, and different states and courts have different rules, here’s what generally happens if a collection agency sues you for nonpayment of a debt. A debt collection lawsuit begins when the collection agency files a “complaint” (sometimes called a “petition”) in court.

Where can I find a debt collection attorney?

We have developed a network of debt collection attorneys all over the United States who will work for us on a contingency basis. In most cases, the lawsuit needs to be filed where the debtor is located which necessitates having this network.

How do I deal with a collection agency/law firm?

  • Phone Calls. You have to be extremely careful when you speak to debt collection agencies on the telephone.
  • Get the Name of the Collection Agency. Another very important tip is to get the debt collection agency’s name.
  • Debt Validation.
  • Fair Treatment.
  • Cease and Desist Letters.

    Can a collection agency file a lawsuit against?

    Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies. Debt Collection Lawsuits. Although collection agencies have the right to file a lawsuit against you for your unpaid debt, legal action is always a last resort.

    Is a collection agency legitimate?

    Debt collection is a legitimate business. If a debt collector contacts you, it’s not necessarily the beginning of an abusive relationship.

    What is a collection law firm?

    Collection law firms are experienced professionals that offer a one-stop collection solution. Collection agencies specialize in mainly sending repetitive letters to debtors. When a debtor receives communication from a debt collection law firm they know legal action is forthcoming if they do not respond.