Collection Lawsuits
All too often, original lenders sell their old debts to large debt collection companies or collection attorneys. Often these companies do not even know who the debtors are or what debts they are attempting to collect. These companies file lawsuits in bulk simply hoping to obtain default judgments against the debtors.
Many consumers have defenses to these collection lawsuits. For instance:
- Many debt collectors attempt to collect excessive amounts which are not legally owed
- Some debts are barred from collection by a Statute of Limitations because too much time that has passed
- The collector does not have sufficient documentation to prove its case
AND
- Oddly enough, frequently the person being sued by collectors does not owe the debt!
Even if you are responsible for the debt and for whatever reason you are behind on payments, you still have rights by law that protect you from harrassment in the collection of the debt (see our page on Debt Collection for more about collection harrassment and abuses). Also, the sooner you seek legal help from an experienced attorney, the more likely you will be able to reduce your debt amount, eliminate potential future interest and other charges, and prevent serious negative consequences for your credit.