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Debt & Collection Defense
Defending against collection lawsuits, disputing judgments, and protecting you from unlawful creditor practices.
Defending against collection lawsuits, disputing judgments, and protecting you from unlawful creditor practices.
Debt is stressful enough without aggressive or unlawful collection tactics. If you are being pursued by creditors, collection agencies, or facing a collection lawsuit, you have legal rights and defenses. Collection laws strictly regulate what debt collectors can do - they cannot harass you, cannot sue you for debt that is past the statute of limitations, cannot collect more than you owe, and cannot report false information to credit bureaus. If a collector violates these laws, you can sue them for damages. Understanding your rights and asserting them can stop collection harassment, eliminate debt, or negotiate a settlement. An experienced debt defense attorney can help you navigate collection disputes and protect your financial future.
Debt comes in many forms. Secured debt is backed by collateral - a mortgage is secured by your home, an auto loan by your car. If you default on secured debt, the lender can seize the collateral. Unsecured debt has no collateral - credit card debt, medical bills, personal loans, payday loans. Creditors must sue to collect unsecured debt.
When you fall behind on debt, the original creditor may try to collect. If you do not pay, they may sell the debt to a debt collection agency - a company that purchases or is hired to collect old debts. Debt collectors are third parties with no relationship to the original creditor. They are highly regulated and cannot use many tactics that the original creditor could use.
Creditors and collectors often report accounts to credit bureaus, which create credit reports used to determine whether you get loans, what interest rate you pay, and sometimes whether you get hired or housing. Inaccurate reporting can damage your credit for years.
Understanding the source of collection efforts and what tactics are legal helps you know when to stand firm and when to negotiate.
The federal Fair Debt Collection Practices Act (FDCPA) regulates how debt collectors can pursue debts. The law prohibits abusive, unfair, or deceptive practices. Collectors cannot harass you through repeated calls (calling before 8 a.m. or after 9 p.m. is illegal unless you agree), cannot call you at work if your employer prohibits it, cannot contact your family members or employer to demand payment, cannot make threats or use profanity, and cannot misrepresent themselves or the debt.
If you send a written request to stop contact (called a cease and desist letter), debt collectors must stop calling you. They can only resume contact to say they will stop or to notify you they are suing.
Within five days of first contact, a collector must send you a written validation notice stating the amount owed, the creditor's name, and your right to dispute. If you dispute the debt in writing within 30 days, the collector must stop collection efforts and verify the debt before resuming. Many consumers use this right to force collectors to produce evidence the debt is legitimate.
Many states have additional protections beyond federal law. If a collector violates these laws, you can sue for damages and penalties.
Many debt collectors violate the law through harassment and abuse. Common illegal practices include:
Repeated calling: Calling you multiple times per day, calling repeatedly after you ask them to stop, or calling before 8 a.m. or after 9 p.m.
Threats: Threatening to sue, seize property, garnish wages, or have you arrested. Note: threats to sue are illegal unless the collector actually intends to sue and the debt is not barred by statute of limitations.
Misrepresentation: Claiming to be an attorney or government representative, claiming you owe more than you do, or threatening illegal consequences like arrest for owing a private debt. These tactics may constitute fraud or false collection claims.
Third-party contact: Calling your family members, employer, or coworkers to demand payment (they can contact them once to locate you, but cannot state the purpose).
If a collector violates these laws, document everything - save voicemails, write down dates and times of calls, save letters, and note what was said. Then contact an attorney. You can sue debt collectors for statutory damages (often $100-$1,000 per violation) plus actual damages and attorney fees.
If a creditor or debt collector sues you, you have multiple defenses. The strongest is statute of limitations - in most states, creditors have 3-6 years to sue for debt collection (depending on the type of debt and state law). If the debt is older than the statute of limitations, you can ask the court to dismiss the case. Note: just because debt is old does not mean you do not owe it, but creditors lose the legal right to sue.
Other defenses include: you already paid the debt (provide evidence - cancelled checks, proof of payment), mistaken identity (the debt belongs to someone else with a similar name), the creditor cannot prove the debt is valid (demand proof - account statements, contracts, chain of title if the debt was sold), the debt was discharged in bankruptcy, or the creditor violated your rights (they may owe you damages that offset the debt).
Many collection lawsuits are weak because the collector cannot produce proper documentation. If sued, do not ignore it - respond by the deadline (typically 20-30 days) and raise your defenses.
An attorney can help you evaluate your defenses and decide whether to fight the case or negotiate a settlement.
Creditors and debt collectors report to credit bureaus. If they report false or inaccurate information, they violate the Fair Credit Reporting Act (FCRA). Common violations include: reporting a debt you already paid, reporting a debt belonging to someone else, reporting an amount owed that is wrong, failing to report that a debt was discharged in bankruptcy, or continuing to report a debt after the statute of limitations expired.
If your credit is damaged by false reporting, you can sue the creditor or collector for damages. You also have the right to dispute inaccurate credit reports - send a letter to the credit bureau disputing the information. The bureau must investigate and correct errors within 30 days. If they refuse to correct errors, you can sue.
Getting inaccurate information off your credit report is critical because it affects your credit score, which affects your ability to borrow, what interest rates you pay, and sometimes whether you can get housing or employment.
Check your credit reports regularly (you get free reports at annualcreditreport.com). If you find errors, dispute them immediately and contact an attorney if the errors persist.
If a creditor or collector files a lawsuit, you will receive a summons and complaint. You have a limited time (typically 20-30 days) to respond. Do not ignore it - if you do not respond, the creditor wins by default and can garnish your wages or levy your bank accounts.
File a written answer or motion raising your defenses. Demand that the creditor prove the debt - they must produce account statements, contracts, and proper chain of custody if the debt was sold. Many cases are won by forcing the creditor to prove their case and having them fail.
Even if the creditor wins, you may be able to appeal, negotiate a payment plan, or use other remedies to protect yourself. Some states allow wage garnishment and bank levies only for certain debts. Understanding your state's law is critical.
An attorney can help you respond to the lawsuit, raise defenses, and negotiate the best possible outcome.
If you are facing collection calls, collection lawsuits, or inaccurate credit reporting, you have rights and defenses. Debt collectors frequently violate the law through harassment, false threats, and misrepresentation. We defend consumers against collection lawsuits, demand validation of debts, send cease-and-desist letters, challenge false credit reports, and sue collectors for violations. Many collection defenses cost nothing to raise - simply asserting them can stop collection efforts or eliminate the debt. Contact us for a confidential consultation.
Contact us to discuss your debt or collection defense confidentially.