Man calculating his debt

The Importance of Fighting Debt Collection Lawsuits in California

Debt collection lawsuits are among the most common type of civil litigation in the U.S. In fact, between the years 1993 and 2013, the number of debt collection lawsuits filed each year increased from around 1.7 million to roughly four million. In other words, as a consumer in the U.S., there is a chance that you may be sued by a debt collector at some point. As we explain below, if this happens, you should strongly consider fighting the lawsuit. In this article, we discuss the importance of fighting debt collection lawsuits in California. 

Default Judgments 

The most important reason to fight a debt collection lawsuit in California is to avoid a default judgment. The majority of debtors who are sued by debt collectors fail to show up in court. When this happens, the debt collector automatically wins, and the debtor is forced to pay the amount of debt in question.  

Issues with Debt Buyers

Debt buyers are organizations that make money by purchasing delinquent accounts from lenders and from other debt buyers. They pay pennies on the dollar for the debt they purchase, meaning that they make big profits if they can collect on even a fraction of these accounts. This also means that debt buyers are often willing to settle with debtors for far less than the amount of the original balance. However, when a debtor fails to address a collection letter or respond to a lawsuit, this opportunity is often lost. 

Insufficient Proof of Debt

Debt buyers routinely show up in court without sufficient proof that they own the debt in question. Further, some debt buyers are unable to provide such proof upon request. When a debt buyer can’t prove that it owns a debt for which it has filed a lawsuit, the case is usually dismissed. Unfortunately, however, debtors who fail to fight their lawsuits miss out on this opportunity. 

Incomplete Files

In addition to proving that it owns the debt it is attempting to collect, a debt buyer must prove that the outstanding balance is correct and that the contract with the original creditor allows for the collection of interest or collection fees it may be seeking. However, debt buyers are often unable to prove these things, and this provides debtors with another effective way to challenge debt-collection lawsuits. 

Contact a California Debt Collection Lawsuit Defense Attorney 

Are you facing a debt collection lawsuit in California? If so, your only chance to beat it is to fight back. Therefore, if you’ve been sued by a debt collector in California, you should contact an experienced California debt collection lawsuit defense attorney for assistance. A debt collection lawsuit defense attorney will advise you on the proper course of action based on your unique situation. At the Fullman Firm, our experienced attorneys will do everything in our power to ensure that your case has a successful outcome. Please contact us today to schedule a consultation.