Tips to Fight a Debt Collection Lawsuit

The pandemic secured the Californians and the other people from several debts and financial risks. Student loans and other delinquencies collection were adjourned. But, debt collectors stayed active. In some cases, those trying to collect an unpaid credit card debt or personal loan or any type of unsecured debt were seen much in action.

Debt collection lawsuits were common civil litigation in the US before the pandemic. According to the PEW Charitable Trust, from 1993 to 2013, there were around 1.7 million to 4 million debt collection suits filed. And during that tenure only, the CFPB reported that around 5% of people in the US had been sued by debt collectors. And the figure for debt in collection rose to 14% in no time. So, if you are planning to fight a debt collection lawsuit, then you should keep the given things in mind:

Debt collection defenses

What’s discouraging about these debt collection lawsuits is that most of them could be won. But, consumers who are sued by a debt collector for their credit card debt never answer the report or come to court. It means the debt buyer wins – even when their claim is not completely valid.

Importance of proof in a debt collection case

For a debt collection lawsuit, the plaintiff is burdened to prove that the person sued owes the debt and the plaintiff can legally collect it. But when you are not there to provide the plaintiff with that burden, the court will accept their claim at the suggested value, and ultimately you get a default judgment against you.

According to PEW, around 70% of debt collection lawsuits resulted in default verdicts. 

However, if your debt collectors are harassing you or you are being abused and ill-treated by them, you can don’t have to feel bad. If the non-stop calls and letters make you feel like your debt traps you, you need to seek your rights.

Owing money to collectors is fine, but it doesn’t mean they can treat you in the worst possible ways. The Federal government has passed regulations for people’s right who owe money and the process of how debt collectors should collect it. If a debt collector has violated the regulations, you can sue a debt collector and get compensation.

Some attorneys can advocate for you on such issues. Rather than being sued by a debt collector, you can sue them at no cost. 

First and foremost, you should speak to the attorney and discuss all your rights that have been violated. If the debt collector has threatened you, used abusive language or screamed at you, called you repeatedly to harass you or made false statements related to your debt, you can file an FDCPA case. The case stands for being mistreated by debt collectors. You can sue them back and get compensation for being harassed by them.