Avoid These Common Mistakes When Dealing With Debt Lawsuits or Collections

Man signing legal documents with instruction from attorney

When facing debt lawsuits or collections, it’s easy to feel overwhelmed and unsure of what to do next. Unfortunately, many consumers make common mistakes that can cost them time, money, and even legal rights. But with the help of a consumer protection lawyer, you can avoid these pitfalls and protect yourself from unfair debt collection practices.

Not Responding to a Lawsuit or Legal Papers

One of the most common mistakes consumers make when dealing with debt lawsuits or collections is not responding to a lawsuit or legal papers. Ignoring a lawsuit can result in a default judgment, wage garnishment, and even a frozen bank account. It’s crucial to respond to any legal document promptly, even if you can’t pay the debt.

Failing to Verify the Debt

Keeping detailed records is crucial when dealing with debt lawsuits or collections. This includes any communication with debt collectors, payment receipts, and copies of any legal documents. Not keeping records can make it challenging to dispute the debt or defend yourself in court.

Making Payments Without a Written Agreement

Making payments without a written agreement is another mistake consumers make. Debt collectors may tell you that making a payment will stop collection efforts, but without a written agreement, there’s no guarantee that they will stop. Additionally, making payments without a written agreement can restart the statute of limitations on the debt, allowing the debt collector to sue you again in the future.

Ignoring Consumer Protection Laws

Many consumers are not aware of the various laws that protect their rights when dealing with debt collectors and creditors. Some debt collectors and creditors may try to take advantage of this lack of knowledge by engaging in illegal and unethical practices, such as making threats or using harassment tactics to collect debts. As consumer protection lawyers, we are committed to educating our clients on their rights and ensuring that they are protected under the law. We have extensive experience in dealing with debt collection and creditor harassment cases, and we can help you fight back against these unfair practices.

Protect Your Rights

If you are being harassed by debt collectors or creditors, it is important to take action and protect your rights. There are many consumer protection laws in place to protect you from these unfair practices, and we can help you understand and enforce these laws. Our experienced consumer protection lawyers can work with you to review your case, gather evidence, and determine the best course of action to take. We will fight tirelessly to ensure that your rights are protected and that you receive the compensation you deserve.

Statistics on Debt Collection Practices

According to the Consumer Financial Protection Bureau, debt collection is one of the most common consumer complaints received by the agency. In fact, in 2020, the CFPB received over 80,000 complaints related to debt collection practices. Additionally, the Federal Trade Commission reports that the agency receives over 200,000 complaints each year related to debt collection. These statistics highlight the prevalence of unfair debt collection practices and the importance of having a consumer protection lawyer on your side to protect your rights.

Don’t Wait to Take Action

If you are being harassed by debt collectors or creditors, it is important to take action as soon as possible. Waiting too long to address the issue can result in further damage to your credit score and financial stability. Contact us today for a free consultation to discuss your case and learn more about your options for protecting your rights as a consumer.