Finding Attorney to Handle Summons for Debt

Credit card debt is one of the top causes of debt problem in the US, which means that several lawyers specialize in the field to help those that had been given court summons. In fact, a lot of consumers have received more than one summons for debt that some people tend to ignore the summon thinking that this would make the credit card company stop bugging them. However, this issue should not be taken lightly and you need to find a qualified attorney to help in handling the case.

A credit card lawsuit attorney is a valuable tool in your arsenal when dealing with massive debt and faced with a summon. As soon as you receive a court summon, you can attempt to either 1) stop the lawsuit so both parties can reach a settlement, or 2) create a defense with the help of an attorney. The first scenario is highly unlikely, which is why looking for an attorney to help with your case should be on top of your mind.

Make sure to choose a credit card attorney who specialize in handling debt cases and have extensive experience with credit card debt summons. That way, you can exploit their experiential knowledge to formulate a potent defense. They can even help you draft a defense that the plaintiff would find it difficult to respond to.

If the defense is not accepted by the court, an experienced attorney can help you negotiate with the creditor who filed the summon. They can assist in the negotiation process for your existing debt’s interest charges so you can fulfill your promise to pay them off, or other arrangements that will be agreeable to both parties.

Answering a Summons

Credit card companies may press charges against delinquent debtors whose accounts are left unpaid for a specific period of time. If you are facing a credit card lawsuit, you will be notified via a summons and complaint sent to your last known address. A summons is a request that you have to appear in court, served by the sheriff or an appointed person who has no involvement to the case. The summons may also be sent via certified mail return receipt requested.

When the summons and complaint is received, you are given a specific period of time to file your response. In most state, defendants are given 20 days to file their answer to the summons. If you don’t file the answer to the summons in time, the judge has no choice but to rule a judgment against you. This is why it is critical to send an answer on time. Being sued by a credit card company may seem daunting but if you know the process, you can get away with a favorable decision without hiring an attorney. 

If you received a summons and complaint for unpaid credit card balance and you have no idea how to draft an appropriate response to a summons, here’s a quick, step by step guide on how to respond to a summons the right way:

Step 1: Read The Summons Thoroughly

When being sued, you will receive two types of documents, the summons and complaint. From the summons, you will know pertinent information relating to the lawsuit while the complaint will list down the allegations made against you. The best place to start is to check the case caption which is listed at the top of the complaint.

Step 2: Know How Much Time You Need To File an Answer

Filing an answer to the summons is important. Civil lawsuits require the defendant (that’s you) to file an answer within a specified period. The specified period to file the answer will depend on the nature of the case and the jurisdiction. Check the summons how much time you have to file an answer or contact your local court clerk and ask for the specified period to do so. In most state, respondents are given 20 days to file an answer. Approach the court clerk to ask for the Notice of Appearance document. Fill out the form, sign it and return the document to the court clerk. This has to be done whether or not you really owe the debt.

Step 3: Determine The Debt’s Age

If you know you owe the debt, check its age. Each state has an imposed period where creditors may pursue delinquent debtors legally, known as the Statute of Limitations (SoL). To check your state’s SoL, you may either call your Attorney General’s office or check online.

Step 4: How To Respond To a Summons for Credit Card Lawsuit

Once you find out the nature of the lawsuit filed against you, you should start drafting an answer to the summons and complaint. From the Notice of Intention to Defend, fill this section with a response. Your response should include a detailed explanation as to why you are not responsible for the debt. The reasons for not being legally responsible for a debt may range from simple mistaken identity or the debt is out of statutes. Filling up this section confirms that you will appear in court and are expected to present your defenses for the allegations.

After completing the response, cut the Notice of Intention to Defend and file it to court. In turn, the court will notify the opposing party of your intention to defend the claim. Usually, the opposing party will think twice about going further with the case at this point.

Most creditors or debt collection companies assume that debtors don’t know a thing about defending themselves in court so they expect an easy victory. By answering the summons and showing your willingness to defend yourself in court, most creditors would rather drop the case instead of spending more money on legal costs. If they see that they will have to wrestle a judgment from you, they will stop pursuing the case altogether. So make sure you know the basics of drafting a response to a summons and check local court rules for more information.

Countering a Credit Card Lawsuit

Receiving a summons for long forgotten credit card debt causes a great deal of concern and anxiety for many delinquent debtors. The good news is, it’s possible to defend yourself against debt claims even without hiring an attorney. You need to focus on attending all court dates, when requested. Missing just a single date will result in your creditor winning the case by default. This could lead to wage garnishment, property lien or worse, seizing your assets. Below is a step by step instruction on how you can counter a credit card lawsuit.

Step 1: Gathering all documents relating to the debt you are being sued for as well as other information that could help give you leverage against the credit card lawsuit, including agreements, receipts, etc.

Step 2: Draft an answer to the court summons within the given time frame. Usually, defendants (that’s you) are only given 20 days to file an answer to the summons. There are cases wherein the defendant is instructed to visit the office stated on the summons to file the answer. If such is the case, make sure you are within the imposed filing period and bring any necessary documents with you.

Step 3: Start familiarizing yourself with local court laws, federal laws and state laws regarding credit card debt and credit card lawsuit. Certain laws are in place to protect consumer rights against abusive debt collectors, like the Fair Debt Collection Practices Act as well as the Fair Credit Reporting Act. If you feel that you have been victimized by abusive debt collector, bring a documentation of such instances, provide proof of your claim and you just might get the credit card lawsuit dismissed and collect a fine for damages reward.

Step 4: To assist you in building your defense against the credit card lawsuit, consider phoning a debt relief attorney to assist you during the litigation. Although it’s not necessary to hire an attorney having someone who has the legal expertise on your side will dramatically increase your chances of dismissing the credit card lawsuit.

Step 5: Appear in court on the right date. Showing up in court also increases the chances of getting the lawsuit dismissed. The fact is, most debt collectors rely on debtors not showing up in court to win the lawsuit. They are likely to stop pressing charges on debtors who are willing to defend themselves in court.

Step 6: Request that the plaintiff produce documented evidence proving that you owe them money. If they come unprepared, the case is likely to be dismissed and your debt written off the books. If the plaintiff represents a debt collection agency, ask evidence that their company is licensed to collect debts in the state that the credit card lawsuit is being tried.

Step 7: If the plaintiff chose initiate a debt settlement, be honest about your financial situation and propose a sound payment plan.

Credit Card Debt Basics - On Debt Responsibility II

Receiving a collection call for a deceased family member’s unpaid balance does throw someone off the loop. The first thing that comes to mind when receiving a debt claim after recently losing a family member is if you are really responsible for it or not. Unfortunately, some debt collectors are not above using dirty tricks, including misrepresenting, to collect the debt. Don't be too quick t repay the debt. You need to know who is really responsible for paying a deceased family member's debt. We’ve compiled tips on how you can resolve the issue:

Know The Rules

Each state has its own rules and guidelines when it comes to resolving debt claims therefore, you need to conduct your own research about the issue and if possible, consult an attorney. Know that there are times when the responsibility of a deceased’s family member will be turned to you. One instance is if you are a co-signer or if you shared a joint account with the deceased. However, if your spouse has a separate account, you are not responsible for the debt, even if the debt collector is claiming otherwise.

Same goes for the children of the deceased. If they were not listed as joint owner of the account or co-signed the debt, they cannot be held responsible for said debt.

Call the Executor of The Estate

Usually, the executor of the estate should be the responsible party for a deceased’s debt dispute. Direct the debt collector to the executor of the estate and let them iron out the issue. Instruct the debt collector that you are not the right person to call and if they tried calling you again, they are crossing the line. A Cease and Desist letter is needed to stop them from further collection efforts.

Familiarize Yourself with the Fair Debt Collection Practices Act or FDCPA

It’s pathetic how some debt collection companies will try to cash out over grieving families. The good news is, there’s no reason why you should be a part of a growing statistics. You can do something about unlawful, abusive and totally inappropriate collection efforts by filing a complaint. If you are receiving incessant collection calls or debt claim notices despite sending a Cease and Desist letter via certified mail with return receipt requested, talk to your attorney and file a complaint.

This will not help you get back at abusive collection companies; you can also collect a fine if you proved that they did engage in unsavory collection practices. To make things easier, do keep a good record of correspondence or conversation between you and your creditor. You can present this as evidence once the proceedings start.

Credit Card Debt Basics: On Debt Responsibility

It’s not surprising that many debt collection companies will try to take advantage of grieving families to cash in on a deceased’s account. In fact, some do call up a grieving family member and would try to use the deceased’s name to make their kin pay for the outstanding balance. Under the FDCPA, debt collectors are not allowed to use deceitful collection efforts to satisfy a debt.

Unless, you are the debt’s co-signer or shared a joint account with the deceased, you do not have responsibility over the debt at all, even if you were the spouse. The same can be said for the deceased’s offspring, they are not responsible for the debt after death.

Settling a Deceased’s Debts

The executor of the estate is the one responsible for all dealings, including outstanding balances, of the deceased. This is why the debt collector should contact the executor of the estate to collect, not the immediate family of the deceased. Unfortunately, some debt collectors do prey on unsuspecting family members so make sure you don’t fall for this tactic and start familiarizing yourself with the Fair Debt Collection Practices Act or FDCPA. Below is an outline of steps you can take to avoid being taken advantage of debt collectors:

One: A Cease and Desist letter has to be sent via certified mail with return receipt requested for persistent collectors who kept calling you or sending you notices about the deceased’s outstanding debts.

Two: Create a good record of all conversations with the debt collector, especially if they are trying to make you feel guilty or use unsavory language just to collect the debt. You can consult an attorney and file a complaint for violating the Fair Debt Collection Practices Act.

Three: Make the executor if the estate request validation of the debt before you hand over the payment! Don’t just pay for anyone’s debt just because you were told by a debt collector about it. Remember, everyone can call someone up and claim that they owe him or her money. It is within your rights to obtain verified information about the debt before resolving the problem.

Always keep the above tips in mind if you are dealing with a debt collector from a dead relative’s due debts. Remember; don’t be too quick to hand over your hard earned cash just because someone claims that a debt has been left unpaid by a deceased family member. Check if the debt is valid, within statutes and make the executor of the estate demand a debt validation.

Practical Ways To Deal With Unexpected Debt Claims

The slightest misstep in a debt claim could result in costly consequences, which is why it is important to determine how to deal with a debt collector the right way. Under the Fair Debt Collection Practices Act, debtors have a fighting chance against abusive collection agents who are willing to cross the line for a few thousand dollars in credit debt. Below are simple steps on how to handle a debt collection letter from the mail:

Validate the Debt First

You can’t pay for something without verifying whether or not you really do owe money. Unfortunately, many debt collection agencies send collection letters to the wrong address! Under the Fair Debt Collection Practices Act, debtors have the right to ask for debt validation from the collection company. Five days after you first contacted the debt collector, they must present a letter telling you the specifics of the debt’s ownership.

Raise a Dispute

In some cases, collection companies will try to collect out of statutes debts. If the debt is extremely old, it is best to check your state’s Statutes of Limitation on consumer debt. If your debt is out of statutes, the debt collection agency can no longer collect nor can they file a credit card lawsuit. If your debt collector is threatening you with a credit card lawsuit on out an out of statutes debt, you can turn the tables and go after them for crossing the line.

Limit Interaction

Under the FDCPA, you have the right to outline when and how a debt collector can contact you. For example, if you do not want to be phoned at certain hours, you can notify them. If you do not want to be phoned at work, you can inform them and should they persist with collecting the money the way they want at the time they choose, you can file a complaint and go after them. If the collection agent or agency was found to have violated your rights, under the FDCPA, they will have to pay you for damages done for harassment.

In addition, you can stop debt collectors from using threats or foul language to scare you into paying the debt. If you show that you will not tolerate such behavior, they are likely to take the message and back down.

Don’t be fooled into thinking that your debt collector has the upper hand when it comes to debt claims. It is important to know your rights and learn how to protect yourself from unsavory behavior in debt collecting.

Collection Agency Laws: Most Frequently Asked Questions

Despite certain laws being enforced to protect consumer rights, many debtors are still facing grave threats and abuse from determined collection agencies who want to extract every single penny they can get their hands on. Now, the key in protecting yourself against these abuses is to arm yourself with information in protecting consumer rights under the Fair Debt Collection Practices Act or FDCPA. Below are answers to some of the most frequently asked questions about FDCPA:

Apart from consumer debt, does the FDCPA apply to business debts as well?

Unfortunately, business debtors do not have the same rights as consumer debtors. Therefore, the FDCPA do not apply to business debts.

I'm getting collection calls day and night, are collection agencies allowed to call debtors at any given time?

By law, collection agencies are not prohibited from calling debtors before 8 in the morning or beyond 9 in the evening, in your time zone. While there is no definite rule on how many allowable times a collection agent may call a debtor, it is understood that they cannot use collection calls as part of their efforts to have the debt repaid.

Can I get arrested for unpaid consumer debts?

The quick answer is no, you cannot get arrested for consumer debts nor face jail time for it. Only a court of law has the power to release a warrant for your arrest, not the debt collector. If you were threatened in any way, of having the police arrest you for your debts, they are violating your rights and you can sue them for it.

Can a collection agency file a credit card lawsuit for my unpaid credit card debts?

Yes, some collection agencies would file credit card lawsuit and they have the right to do so. However, they cannot threaten a debtor with a credit card lawsuit unless they followed through. In addition, creditors can no longer file a credit card lawsuit nor threaten to file a credit card lawsuit if the debt is no longer within statutes.

I still get collection calls for old debts, is this legal?

Yes, they can collect old debts as long as the debts are within statutes. Each state has different rules regarding the statutes of limitation. Usually, the statutes of limitation will range from three to ten years. Once the debt is out of statutes, the creditor can no longer collect it nor can they file a credit card lawsuit or threaten you with taking legal actions.

What can I do to stop all collection efforts?

A Cease and Desist letter sent to the collection agency is one of the simplest ways to stop all collection efforts. They can no longer call you at ungodly hours nor contact people around you discussing your finances.

Of Statutes Of Limitations And Debt Collection Agencies

Although debt collectors are known for their aggressive and often, illegal collection practices, consumers now have the upper hand with the Fair Debt Collection Practices Act or FDCPA enacted by the congress. Unfortunately, many debtors remain clueless when it comes to their rights as well as the concept of time-barred debts. This leaves many debtors vulnerable to debt collection harassment and is bullied into paying for debts when they don't really need to.

Now, every debt can be collected until a specific date. Known as the statute of limitation, the length of time until the debt validity expiration will vary from state to state. Because each state's statute of limitations will differ it is up to the debtor to determine how much time he or she have until the debt's validity expires. If your debt is already out of statutes and you still get collection calls from debt collecting agencies, you need to know the limits imposed on such situation.

For example, although the debt is out of statutes, the debt collection agency can still make attempts to obtain payment. Attempting to collect out of statute debts is by no means, an illegal practice. However, debt collector's efforts to do so is now limited. For instance, they can no longer threaten to file a credit card lawsuit. It's common for many collectors to use a credit card lawsuit as way to scare delinquent debtors into paying the debt. On out of statute debts, they cannot file a credit card lawsuit even if they followed through with the threats because the debt is no longer valid for collection. If you have old, unpaid credit card debts that are on the verge of reaching out of statutes status, do not repay the debt because this will just restart the statutes clock!

Some debt collection companies go at great lengths to collect debts, including re-aging old, out of statutes credit accounts to buy them more time for collecting the money by filing a credit card lawsuit. This means if a debt is beyond the statutes of limitation in your state, they can fool you into paying by starting the statutes clock to file a credit card lawsuit.

If you suspect that your debt has been re-aged, you can request a credit report from major credit reporting bureaus and examine the information on the report. If things do not add up to the information released by the debt collector pertaining to the old debt, take note of it, point it out and report the agency for re-aging your debt account. Do note that in some states, re-aging charged off accounts is legal as long as the debtors acknowledge that they own the debt.

Fair Credit Reporting: What You Need To Know Now

Debt collectors have always been linked to harassment, threats and use of profane language to extract debt payments, especially old debts, despite laws enforced to protect consumer rights. Out of statutes debts will be sold and resold and often, those who purchased the accounts will not hesitate to step on a few toes just to make a successful collection.

Unfortunately, unpaid debts, old and new, will cause a negative impact on your credit. Worse, some debt collectors will even try to falsely report negative remarks on major credit reporting bureaus without verifying the identities of the debtor or without waiting for the debtor to dispute the alleged debt.

This isn’t exactly a new collection tactic; many debtors will even try to report out of statutes debts in a bid to cause negative effects on debtors’ credit report. This is a major concern for many because employers and even landlords usually checks the credit of an applicant and if they see bad marks on one’s credit, their application will be rejected.

Now, the good news is, there are actually laws in place which gives consumer more rights to their own credit reports. For example, you can dispute a false claim that has been made on your credit report, in writing. You will also need to get in touch with the credit reporting agency to have them investigate the discrepancy on your report and report the result of the investigation to you. If the statement made by the debt collection company is indeed false, the statement will be removed from your report.

This means it is important to request a copy of your credit report, especially if you have old, charged off credit card accounts with unpaid debts.

Under the Fair Credit Reporting Act or FCRA, everyone is entitled a free copy of credit report from the three major credit reporting bureaus once a year. To request a copy of your credit report, go to a credit reporting bureau's website and request for one. The Fair Credit Reporting Act or FCRA give debtors the power to control their credit history and dispute false debt claims that could cause negative effects on credit reports.

Once you receive your free credit report, you can check outstanding balances that need to be repaid or, if you have an existing credit dispute with a debt collector agency or creditor, you can check if the debt in question is within or beyond statutes.

Collection Agency Laws: What Debtors Need To Know

Despite laws enforced to prevent consumer rights violation, it's not unusual for debt collection agencies to cross the line and talk their way into extracting money from debtors. Unfortunately, not all debtors are aware of the Fair Debt Collection Practices Act or FDCPA. To shed light on consumer rights laws, read

One: The Fair Debt Collection Practices Act was passed specifically for consumer debt. This means people with business debt are exempted from this act. Debtors who have business debts do not have the same rights as those with consumer debts.

Two: Debt collection agents are prohibited from calling debtors very early in the morning or beyond 9 in the evening. While the FDCPA did not specify how many times a collector can call up debtors, they are prohibited from threatening or harassing debtors into paying the alleged debt.

Three: Under the FDCPA, debt collectors cannot threaten debtors jail time for unpaid credit card debts. They cannot issue a warrant for arrest because only a court of law can send such warrants. Any debtors who threaten debtors with jail time or arrest warrants are violating the FDCPA.

Four: Collection agencies can file credit card lawsuit against delinquent debtors. However, they cannot use a credit card lawsuit as a threat unless they already acted on it. Debtors need to check if the age of the debt is out of statute. If such is the case, debt collectors can no longer pursue the debt via credit card lawsuit as it is already time barred. Debt collectors who plan to file credit card lawsuit should only.

Five: Statute of limitation varies from state to state. Usually, the statutes will range from three to ten years. It's best to check your state's statute of limitations for credit card debt to be on the safe side. Once a debt is out of statute, debt collectors can no longer file a credit card lawsuit nor can they collect the money in any other means.

Six: You can stop the credit harassment. If a collection agent is calling you on your home number or in your office, spewing threats and using profane language, or attempt to discuss the debt with a third party, they are violating your rights as a consumer and you can take legal action against such harassment.

Knowing your rights is the first step towards dealing with debt collectors, abusive or otherwise. Most debt collectors assume debtors have no idea about consumer rights and continuously use threats as a way of extracting debt repayments. So know your rights and stand up against abusive debt collection practices.

Credit Collection Laws And You

The Fair Debt Collection Practices Act and the Fair Credit Act has helped thousands of debtors free themselves from collection agents and junk debt buyers who act like complete Neanderthals when collecting debts. Junk debt buyers, collection agencies and sometimes, even original creditors are known mostly for their unforgiving, intimidating and often illegal collection tactics to extract money from debtors. Since laws have been enforced, consumer rights are protected against mean-spirited credit collectors, which is why it is important to educate yourself with credit collection laws to minimize the chances of being harassed by creditors or collection agencies.

One of the most common ways debt collectors obtain information from debtors is asking for their bank or credit card information. In the past, debtors have no other choice but to divulge such sensitive information from creditors or collection agencies. However, things have changed, laws are enacted and junk debt collectors and collection agencies can no longer make a person give his or her credit card and bank information.

Once contacted by a debt collector, debtors are given 30 days to dispute the debt and make the debt collector prove the ownership of the debt in dispute. The bottom line is, you don’t need to pay anything just because someone claims you owe them money. If they can’t produce proof that you owe them money, they can’t collect the money nor can they file a credit card lawsuit.

Apart from proving the debt’s ownership, collectors can no longer threaten, use profanity, vulgarities or use demeaning language to scare debtors into paying the debt. They can no longer humiliate you or talk to third parties about your financial problems. They can no longer discuss confidential debt information to other people. They can no longer threaten to garnish your wages, put lien on your properties when they haven’t gained legal authority to do so. They can only obtain a portion of your paycheck if they win the credit card lawsuit they filed otherwise, no such threats are allowed under the FDCPA.

If debt collectors continuously call you at the dead of the night or early in the morning, you can send them a Cease and Desist letter, information them that you do not wish to be contacted via phone calls and will respond only in writing. In response, the debt collector can only notify you about their next step, usually filing a credit card lawsuit, in writing. If they refuse to comply, they are violating the mandates of collection laws and will be brought to justice.

What To Do Next When You Got A Collection Letter In The Mail

With the unstable economy and an unsure future of most businesses, the last thing you need is a credit card debt collection letter landing in your mail. Unfortunately, this happens to hundreds of people across the country. It’s their reality. If such is the case, don’t panic. There are steps you can state in order to address the issue and even stop your debt collector from filing a credit card lawsuit.

Immediate Respond To Request Validation of The Debt

Debt collectors do not have the right to ask debtors to pay the alleged debt without proving the debts’ ownership. Note that the burden to ask for credit card debt evidence is on you. Simply respond to the collection letter with a request for debt validation, within 30 days of receiving the collection letter. If you ignore the letter, you are only increasing your chances of facing a credit card lawsuit. If you request a debt validation, you give yourself more time to figure out your next move. Make sure to send the debt validation request via certified mail with a return receipt requested.

Check Your State’s Statute of Limitations

Did you know that debt collectors only got a limited time to collect debts otherwise, they are no longer allowed to pursue the debt or file credit card lawsuit? As soon as you are notified about the debt, check your state’s Statute of Limitations for consumer debts through your Attorney General’s website. If the debt is out of statute, your debt collector cannot collect the money or file a credit card lawsuit and use wage garnishment or property lien as ways to get you to pay the debt.

Do note that some states reactivate statute of limitations as soon as you repay the debt! So don’t pay the debt without knowing the next move you take. If the debt is out of statute, simply ignore the collection letter or send a letter to the creditor letting them know that the legal collections stage has passed. If the debt is within statute, don’t be too quick to start payments because this will bring back the statute clock. Instead, consult an attorney or educate yourself on the right defenses to use if the creditor files a credit card lawsuit against you.

Know Your Rights

Lastly, it is important to familiarize yourself with the Fair Debt Collection Practices Act, particularly if you came across rude, aggressive debt collectors who will stop at nothing to get the money you allegedly owe. Most debt collectors are hoping you know nothing about consumer rights and will try to squeeze every last penny from you so don’t be a victim and fight back.

Debt Collectors: Rising Complaints For Abusive Collection Tactics

According to the Federal Trade Commission, gathered by the Consumer Financial Protection Bureau, debt collectors have the highest number of consumer complaints.  Both the Consumer Financial Protection Bureau and the Federal Trade Commission gathered all data and found that debt collectors routinely violate the FDCPA for their aggressive and unsavory behavior when collecting debts.

Now the question becomes, why are they rude when they collect credit card debt? Why do they cross the line routinely just to collect money from debtors? Below are some of the possible reasons why:

Commissions: Most debt collectors earn money each time they successfully collect the credit card debt. This is their prime motivation, if they cannot collect, they won’t get paid! This makes you wonder just how much they are getting the way they aggressively seek out debtors. From the looks of it, a lot of money is at stake.

Shady Employees: Did you know that some collection agencies actually hire convicted felons to collect credit card debt? Worse, others are caught red handed running scams, like making other people pay alleged debts they don’t really owe. These collection agencies have been routinely caught by the Attorney’s General and have paid hefty fines to bail themselves out of trouble. Unfortunately, the Attorney’s General does not have enough manpower to totally eliminate these scoundrels and some continuously cross the line, violating the rights of debtors.

Ignorant Debtors: One of the most likely reasons why collection agencies even try their luck at bullying debtors is they know most of them do not even know anything about consumer rights laws. They go crazy scaring people out of their wits for unpaid credit card debt and getting more than the actual debt owed. If consumers do not know anything about the law, they cannot make debt collectors accountable for their actions. Debt collectors are always on the lookout for new ways to squeeze every last cent out of debtors so it’s important to educate yourself about the FDCPA and learn what you can do to stop abusive collection efforts.

All these factors play a role in encouraging debt collectors to obtain money through dubious and often illegal collection efforts. The important thing to remember is that there are lows enforced to control these unsavory strategies and you can bet that if you show your debt collectors that you know a thing or two about the FDCPA, they will think twice before they try to bully you into paying.

Important Questions to Ask When In Contact With A Collection Agent

Dealing with a collection agent is quite a stressful experience especially with the possibility of facing a credit card lawsuit. For others, ignoring the problem might seem like the best thing to do but if you want to rid yourself of a problem, you’re going to have to find to a resolution. If you came across a collection agent trying to get you to pay an alleged debt, it is important to ask yourself these important questions:

“Is he calling the right person?”

Many debt collectors contact the wrong person because they get very little information from the original creditor when they purchased charged off accounts for pennies on the dollar. Therefore, if you have a similar name as that of a debtor, they just might mistake you for the other person and call you. If such is the case, make sure you let the debt collector know and take note of the time and date he or she called you. If the calls persist, you can take legal action against the debt collector.

”Do I own the debt?”

If you own the debt, it is important to check if the debt is out of statute. If that’s the case, the collector can no longer pursue you since the account is old. On the other hand, if you are unsure whether or not the debt is yours, you can send a debt validation notice to get more information pertaining to the details of the debt account.

“What should I do to repay the debt?”

If the debt is indeed yours, you need to know what you can do to take care of the problem. Don’t just ignore the debt collector that may result in a credit card lawsuit, rather, talk to them and negotiate a settlement and just keep the agreement in writing. That said, it is important to not divulge any personal information, including your bank details and personal contact information. If you do not have the money to pay the debt, let the other party know. If the debt collector files a credit card lawsuit, you can defend yourself in court and quite possibly even win the case, as long as you do not ignore the summons for the credit card lawsuit.

“Should I hire an attorney?”

If you are facing credit card lawsuit, you can either hire an attorney or defend yourself in court. For many debtors, a great document with info about how to fight credit card lawsuit is enough to win the case. However, if you got the budget, go ahead and hire a lawyer. Also, if you feel that a debt collector has violated your rights, you can also pursue them legally and even pocket a fine for it.

Avoiding A Credit Card Lawsuit: Negotiating With A Tough Creditor

With the looming economy, inflation and hundreds of people dealing with various financial problems, it's not surprising that many are also facing credit card lawsuit for unpaid debt. The good news is, there is a way to avoid such problems, like meeting up with your creditor and striking a deal. However, these agreements do not always result in favorable repayment option for debtors.

If you want to negotiate with your creditor and avoid a potential credit card lawsuit, you need to contact your creditor immediately; this can be done by phoning them as personal meet ups might be difficult to pull. Note that it's much easier to negotiate with the original creditor rather than just the collection agency who purchased your account from your old card company. Usually, creditors or collection agents would notify you whether or not they will file a credit card lawsuit against you. Whichever the case, negotiating a deal would most likely require you to pay a onetime lump sum.

The deal will boil down to the payment amount. Of course, the creditor has a drawn out amount they expect to be paid. If they disagree with your offer, you can go ahead and offer a payment plan that fits your budget. Whatever the agreed amount is, make sure you can afford to pay it each month. To avoid a potential credit card lawsuit, you have to be proactive and contact your creditor as soon as you can. This not only helps protect your creditor score from being impacted negatively, and prevents the creditor from selling your account to a collection agency.

It helps to be diligent in terms of responding to your creditor's proposed payments. When it comes to card debts, repayment is always better than an uncollected account. Some creditors might try to modify the offer while others will refuse to accept the payment plan you propose. If the creditor refused your offer, ask them what acceptable amount they can accept. If say, both parties has agreed on a payment plan, always put everything in writing. Additionally, a receipt will be given, stating the debt has already been paid in full.

Putting everything in writing is important because you cannot count on your creditor to keep their word every time! A written payment is a viable proof of your good faith to the judge, in case, things turned for the worst and your creditor filed a credit card lawsuit in the end.

Protecting Your Rights Against Abusive Creditors

In most cases, junk debt buyers and creditors are so eager to collect that they will do practically anything to get the money, regardless whether their actions are illegal or not. The good news is, complaints about abusive creditors and debt collectors are on the rise that the Federal Trade Commission released the top complaints that consumers report about their debt collectors:

Demands Unreasonable Debt Payment

According to the Fair Debt Collection Practices Act or FDCPA, debt collectors are not allowed to misrepresent the amount or the legal status of a certain debt. This means creditors or junk debt buyers cannot collect more than the original debt value and are not allowed to inflate the debt with interest or added charges unless permitted under state law. As a consumer, you have every right to request a validation of the debt in writing. This will force the creditor to present documents that will prove ownership of the debt.

Abusive Collection Practices

Debt collectors are prohibited from harassing debtors into paying the debt. This means they cannot use threats, profanity, racial slurs or any demeaning language to shame debtors into paying the money owed. They cannot call you at inconvenient times to collect unless you stated that it’s fine to call before 8 in the morning or beyond 9 in the evening. It’s important to keep a good record of every correspondence and conversations you had with your creditor as this could be the key to winning the credit card lawsuit.

Threats of Credit Card Lawsuit, Wage Garnishment, etc.

Debt collectors are prohibited from using wage garnishment, jail time or filing a credit card lawsuit when they do not intend to keep their words or do not have legal authority to carry out the threats. If your creditor is threatening to put you to jail to make you pay up, he is breaking the law because there is no law in the US that pertains to putting people in jail for credit card debts. Credit card lawsuit fall under civil lawsuit, not criminal cases. Therefore, there should be no fear of doing time even if your creditor files a credit card lawsuit.

Additionally, creditors and debt collectors have no legal rights to garnish wages or put lien on your properties unless they filed a credit card lawsuit and they managed to win it. The only time they will be allowed by the court to collect cash via wage garnishment or property lien is when they got a default judgment ruling at the conclusion of the credit card lawsuit they filed.