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I Got Sued By A Debt Collector
No one likes receiving collect calls. But have you ever received one for a debt you’ve already paid – or know it’s not yours? Or have you been threatened and harassed by debt collectors until you pay? If so, we want you to know how to protect yourself.
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Today, the FTC, working with federal and state law enforcement partners, announced Operation Corrupt Collector, which federal and state law enforcement agencies are conducting to target collector fraud and abuse. The operation includes five FTC actions, and two new cases were announced today.
All of the new FTC cases announced today involved companies claiming they collected debts they couldn’t legally collect or that people didn’t actually owe. In these cases, the companies made robocalls to people telling them they were being sued or would soon be sued if they didn’t pay.
In cases reported today by our law enforcement partners, companies called people posing as law enforcement officers or attorneys. They intimidated people with threats of workplace arrest, jail time, or driving license suspension if they didn’t pay up immediately.
1. Find out who is calling. Get the collector’s name, collection agency, address and phone number.
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2. Get information-confirmation about the debt. Debt collectors must “verify” or tell you the amount owed, the name of the current creditor, and the name of the original creditor within five days of first contacting you.
3. Do not respond to threats. If scammers threaten to arrest you, suspend your driver’s license or, if you don’t pay right away, call your employer, hang up and report the FTC debt collector at ReportFraud.ftc.gov.
4. Do your own detective work. Contact the original creditor. Is it your fault? Did they sell your debt or hire a debt collection company? If so, is the caller a collection agency for the original creditor?
5. Dispute the debt. If you believe that you do not owe the debt in whole or in part, you can dispute it with a collection agency by mail or online. Even if you have verification information.
Sued By The Debt Collector
Would you like to participate more? Join us next Thursday, October 8th at 3:00 PM EST for a Twitter conversation about debt collection and Operation Corrupt Collector. You can follow the conversation by following us @FTC and using #OpCorruptCollectorChat.
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The purpose of this blog and its comments section is to inform readers about the activities of the Federal Trade Commission and to share information to help them prevent, report, and recover from fraud, deception, and bad business practices. Your thoughts, ideas and concerns are welcome and we encourage you to comment. But remember: this is a moderated blog. We review all comments before they are posted and will not post comments that do not comply with our comment policy. We expect commenters to treat each other and bloggers with respect.
We do not edit comments to remove objectionable content, so make sure your comment does not contain the above. Comments on this blog are made public. To protect your privacy and the privacy of others, please do not include any personal information. The opinions expressed in comments on this blog are those of the individual who expressed them. They are not affiliated with or represent the views of the Federal Trade Commission. Nick Gallo By Nick Gallo All Articles → Nick Gallo is a certified public accountant and marketer in the financial industry. He was an auditor for multinational companies and a tax strategist for real estate investors.
Things Debt Collectors Are Forbidden To Do
The average American with outstanding debt spends 33% of their income each month to pay it off
. When you lose a large portion of your income to debt, your ability to save money is severely limited, and you likely won’t be able to pay your bills. It’s easy to slip through the cracks, especially when a financial situation arises and you’re not prepared for it. If it’s about paying a debt, the debt collector can sue you.
Facing a lawsuit can be scary, especially if you’re not prepared. It’s important to stay calm because depending on how well you react to the news, you could end up paying a lot more or a lot less than you originally owed. Here’s a guide to help you tip the odds in your favor
But it’s a natural human instinct to think, “It won’t happen to me.” In psychology, this phenomenon is known as optimism bias. A classic example is that everyone thinks they are great drivers, but accidents are still the leading cause of death.
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🤔 In an interesting survey, 73% of respondents called themselves excellent drivers. At the same time, 93% of them admitted that they constantly resorted to certain risky behavior.
This optimism can help reduce anxiety in the short term, but it can also keep you from preparing for legitimate threats. About 15% of Americans report being sued by a debt collection agency
. Don’t assume that your account balance is relatively low and that you won’t be tracked.
The collection process is a slow escalation that takes several months. The sooner you take action to solve the problem, the better.
How To Deal With A Lawsuit From A Debt Collector
You can avoid a lawsuit at any point in this series. Both primary creditors and collection agencies are often willing to negotiate payment plans or even settle debts for less than you owe. They do not provide these methods. You must take the initiative, contact the creditor and negotiate. If you can’t do that, consider getting credit counseling to help you evaluate your options.
The actions of the creditor take place according to the intended scheme. Knowing this pattern will give you an idea of what to expect and how to prepare.
☝️When the invitation comes, it may seem that the situation is completely out of control, but it is not. Taking the situation seriously and taking action now can limit the damage. You may even be able to get the case dismissed.
The first step in fighting a creditor’s case is to take it seriously. This problem is not going away, and ignoring it will only make it worse.
Have You Been Sued By The Debt Collection Firm Patenaude & Felix?
If a debt collector has sued you, you need legal help. Hiring a lawyer can be expensive, but there are ways to get cheap or free legal help. Look for free legal clinics run by local law schools, or search for legal aid societies or pro bono attorneys.
A lawyer will help prepare a response, advise on the most effective defense and represent interests in court. Finding the right attorney may take some effort, but having one will greatly increase your chances of success. 53% of respondents with legal representation won a debt collection case, compared to only 19% of respondents without an attorney
Debts are often sold from collector to collector, and documents are easily confused. Some people are being sued for debts they never had. Sometimes collectors try to resuscitate a “zombie debt” even after the statute of limitations has expired. Before you start preparing for your defense, make sure that the debt is yours and that you really owe it.
None of these conditions are sufficient to warrant a release. If none of these conditions apply, you still have options.
Debt Collector Interview Questions (with Example Answers)
In the new rules, which entered into force on November 30, 2021, “Inkasso cannot initiate or threaten legal action against the consumer to collect overdue debt.” This means that debt collectors can no longer sue you or threaten to sue you after the statute of limitations has expired. Learn more about Regulation F and its impact on debt collection.
If you receive a complaint, you will be given time to respond. Always serve something. This is where a lawyer or a legal clinic can be a real help. Seeking professional advice will help you formulate an effective response.
The biggest mistake you can make is to ignore a subpoena. Non-payment of debts is a civil offense and is punishable only by money. Failure to appear at a court session or
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