Avoiding Debt Collection Lawsuit Scams

All consumers should be aware of debt collection lawsuit scams. As of late, these types of scams have been rampant. In this article, we discuss how you can avoid becoming a victim of a debt collection lawsuit scam.  

What is a debt buyer?

A debt buyer is a business that purchases large numbers of delinquent or charged-off debts from creditors or lenders. Debt buyers only pay around four cents on the dollar per account, so they profit by collecting just a small percentage of the debts they buy.

What do debt buyers do after purchasing a debt? 

When a debt buyer purchases a debt, it can sue the borrower. This is perfectly legal. After a debt buyer files a lawsuit against a debtor, it must serve the debtor with a copy of the lawsuit. Unfortunately, however, some debt buyers purposely avoid this requirement in order to obtain default judgments. In other words, by purposely failing to serve a debtor (and lying to the court about it), a debt collector can automatically win its lawsuit.  

Defending against a debt collection lawsuit scam

If the court enters a default judgment against you in your case because a debt buyer failed to properly serve you, you should immediately contact a debt collection defense attorney. In addition to facing serious consequences for lying to the court, the debt buyer’s case will likely be dismissed. 

In addition, there are likely several other defenses available to fight debt your collection lawsuit. To put it simply, a debt buyer must prove several things in order to win a debt collection lawsuit case. However, since debt buyers don’t have direct relationships with debtors, they are often unable to do so. Therefore, if you’ve been sued by a debt buyer, it’s important to consult with an attorney in order to explore all possible defenses in your case. 

Suing a debt buyer

Depending on the circumstances, you may even be in a position to sue a debt buyer under the Fair Debt Collection Practices Act. Specifically, if a debt buyer tries to collect a debt from you using unfair or deceptive acts, you may be entitled to financial compensation. Whether you ultimately attempt to sue a debt buyer or not, remember this: debt purchasing companies rely on most borrowers not fighting back. Therefore, if you are the victim of a debt collection lawsuit scam or have been served with a debt collection lawsuit, you should contact a debt collection lawsuit defense attorney for help. 

Contact a California Debt Collection Lawsuit Defense Attorney

If you’re facing a debt collection lawsuit in California, you should contact a debt collection lawsuit defense attorney immediately. At the Fullman Firm, our experienced debt collection defense attorneys have nearly half a century of combined debt collection lawsuit defense experience. When you choose the Fullman Firm to fight your debt collection lawsuit, we will do everything in our power to ensure your case is a success. Please contact us today to arrange a free consultation.