When it comes to debt defense cases, accurate record-keeping is crucial. Keeping detailed and organized records can significantly benefit your case and help you deal with the legal process more effectively. While it may seem like a tedious task, maintaining accurate records can be incredibly beneficial.
It can be stressful and overwhelming when debt collectors inform you that they are going to sue you. If you have stayed on top of your debt and paid it down, there is no valid basis for them to contact you. Nevertheless, debt collectors often make mistakes and are sometimes careless or reckless when trying to collect from debtors. In some cases, their illicit behavior can become legally unacceptable.
You are not as powerless as you think when dealing with debt collectors. You can push back when they try to contact you or fight them in court when they sue you. If debt collectors have broken the law, you can turn the tables and sue them. If you can prove illegal conduct, they will have a legal obligation to pay you.
The documentation in your possession is crucial in both challenging the debt’s validity and trying to punish the debt collector. Having this paperwork readily accessible can help you make your case. Besides gathering your documentation, you also need to contact a consumer protection attorney (also known as a debt collection lawyer). Your attorney can defend you from a wrongfully filed lawsuit and initiate a court case against the debt collector. You can also sue a credit bureau or creditor when they place wrong information on your credit report.
Having the Paperwork Is Essential in Your Case
It can be challenging to save all the documentation concerning your owed debts. Debt collectors may have taken you by surprise, and you have already disposed of the necessary paperwork. It is best to retain documentation about the money you paid back and organize it in a safe place. There may come a time when you pay the price, or at least go through additional hassle, when you do not have the needed paperwork.
You may decide to engage with debt collectors when they try to contact you. Even though you are angry that they are trying to collect an invalid debt from you, sharing your documentation with them may be helpful. This way, the debt collector may realize that you do not really owe the money (or you do not owe as much as they claim), and they can close your file without further contact. Ending the debt collection action may be as simple as clearing up a misunderstanding or educating the debt collector about their carelessness. Alternatively, the debt collector will file a lawsuit against you, and you must present the evidence in court.
Debt collectors are the ones who have the burden of proof to show that you owe the money, and they cannot win in court without establishing the debt’s validity. You can always ask the debt collector to furnish you with proof of the debt before you engage with them any further. Nonetheless, if the debt collector has some paperwork and you have none, things can be more challenging in court.
Debt Collectors Carelessly File Lawsuits Against Debtors
Debt collectors often do not cross their i’s and dot their t’s when filing a lawsuit against you. These companies buy large tranches of debt all at once, including money owed by thousands of people, and they may move quickly to try to pressure you to pay. Everything they do focuses on speed; they want to get money from you that they will use to buy more debt.
Debt collectors often try to take advantage of the element of surprise, trying to catch you unaware of the actual validity of the debt. They may be banking on the fact that you are afraid of them and the consequences of owing money, and you will do whatever they ask. Their constant harassment can be overwhelming, and it is essential to know when debt collectors cross the line and break the law.
People Have Fined Debt Collectors for Trying to Collect Invalid Debt
Numerous enforcement actions have illustrated how careless debt collectors can be when filing lawsuits. For example, the Consumer Financial Protection Bureau (CFPB) has sanctioned Portfolio Recovery Associates (PRA) several times for its practices in collecting debt and filing lawsuits. The company tried to collect unsubstantiated debt from thousands of people, claiming these customers owed money for old debts. In addition, PRA filed scores of lawsuits attempting to collect debt even though the statute of limitations barred it. These were just several of the many allegations contained in the CFPB’s complaint.
Companies like PRA often do not take the time to do the proper amount of homework. They may be careless because they are dealing with multiple debts, and the company wants to proceed immediately to the collection phase. Alternatively, companies like PRA may be acting intentionally, knowing full well they are bullying debtors into paying money they may not owe. Either way, you must be extremely careful before paying a debt collector anything.
You need to know as much as possible before you write a check or show up in court to fight a lawsuit. Debt collectors must accurately represent the debt before trying to collect from you. In reality, debt collectors try to push their luck as far as possible. They know that the customers who pay them for invalid debt can far outweigh enforcement penalties and lawsuit judgments. Some companies make a conscious choice to act this way.
Your Documentation Can Be Helpful When Responding in Court
Debt collectors who sue you in court will state their allegations in a legal complaint and may include their own information about the debt if they have it. Even though they file under the auspices of the court system, you should still not assume that they have been meticulous. Legal complaints are often “off-the-shelf” documents and debt collectors merely fill in the information that relates to you. Some cases seem to come off an assembly line because they file so many. Debt collectors buy your debt with the full intention of suing you if you do not respond to their initial attempts to collect. They can file dozens of lawsuits with an individual court simultaneously; thus, you can expect a certain degree of sloppiness.
When debt collectors sue you in court, you have the legal right to due process. You need to show up to defend against the lawsuit. If you ignore a lawsuit, even for invalid debt, you can end up on the wrong end of a default judgment. Then, you may have to pay the money you do not owe, either because the debt is time-barred by the statute of limitations or was never valid in the first place.
You Have the Legal Right to Due Process in Court
Your due process comes in the form of an answer that you must file with the court within thirty days of being served with the complaint. Your answer will include your response to the specific allegations against you. It is helpful to include your own documentation that answers particular questions about the debt. The more documentation you have about the debt, the better chance you have when you fight back against the debt collector. If you have conclusive paperwork that shows that an invalid debt was at issue, it can be the end of your case as soon as the court reviews it.
It is important to remember that debt collectors must go through the court to obtain a judgment against you. They are certainly not infallible, and they do not win every time. You can win if you have evidence that you do not owe the money (for example, if you have already paid back the debt or it is time-barred). Debt collectors may even realize their mistake and withdraw the lawsuit to maintain credibility in court.
You Can Use Your Documentation When You Sue Debt Collectors
Documentation can also be helpful if you go on the offense and file a lawsuit against debt collectors or anyone else making a wrongful notation on your credit report. You can take action if someone has filed a lawsuit against you or an invalid debt has damaged your credit report.
You can sue debt collectors under the Fair Debt Collection Practices Act if they made any misrepresentations in connection with your debt. Trying to strongarm you into paying invalid debt may be enough to entitle you to financial compensation because it is a practice that the FDCPA explicitly prohibits. Debt collectors also cannot use other aggressive or dishonest tactics in connection with their activities.
Your documentation can undercut any defenses debt collectors use when you sue them. You can use your paperwork to show they should have known they were trying to collect an invalid debt from you. Furthermore, accurate records are essential for organizing and presenting financial information to your attorney. Your lawyer can use these records to identify any potential violations of consumer protection laws.
You Can Sue Debt Collectors and Possibly Others
If a creditor has sold time-barred debt, you can take legal action against them. You can even sue the credit bureau if it places derogatory information on your credit report. You can challenge any entry on your credit report, and the credit bureau must undertake a reasonable investigation. It must remove any wrongfully reported information, or you can sue for damages.
There may be numerous parties who you can sue under federal and state law if someone is trying to collect an invalid debt from you. A consumer protection attorney can speak to you and learn more about the facts of your case. They understand the laws and regulations surrounding debt collection and can use this knowledge to protect your rights. Whether negotiating with creditors, disputing inaccurate information on your credit report, or representing you in court, a lawyer will protect your rights. They will also tell you who you can sue and under what law and advise whether to file your lawsuit under state or federal law.
Damages in an FDCPA Lawsuit
If you win a lawsuit under the FDCPA, you may have the legal right to the following in damages:
- Up to $1,000 in statutory damages
- Actual economic losses that you suffered if you were denied credit or forced to take time to defend a lawsuit that never had any basis
- Emotional distress if you suffered because of the efforts of the debt collector
- Attorney’s fees, should you receive any money in your case
If you file and win a lawsuit under the Fair Credit Reporting Act, you may deserve similar damages.
It Costs Nothing to Get Legal Help
You do not have to pay an attorney anything from your own pocket and take no financial risk. A consumer protection attorney can take solid legal action and fight for you to receive compensation. They can file a lawsuit on your behalf, or they can file a lawsuit on behalf of a class of plaintiffs who also had to deal with the debt collector’s illicit actions. If you win your FDCPA or Fair Credit Reporting Act lawsuit, you may not even have to pay attorney’s fees because the defendant will need to pay these costs.
By hiring a consumer protection attorney, you are not only gaining legal experience and representation but also leveling the playing field when dealing with debt collectors and creditors. These attorneys have the knowledge to negotiate with aggressive debt collectors, dispute inaccurate information on your credit report, and develop a strategic defense to protect your rights.
Accurate record-keeping is crucial for debt defense cases. It provides a solid foundation for your defense strategy, helps establish the statute of limitations, and allows your attorney to work more effectively on your behalf. By maintaining meticulous records, you can better protect yourself and increase your chances of reaching a favorable outcome in your debt defense case.