How Can a Debt Dispute Lawyer Help?


October 15, 2024 | By California Consumer Protection Attorneys | Kazerouni Law Group, APC.
How Can a Debt Dispute Lawyer Help?

Dealing with debt can be an overwhelming and stressful experience. Whether you face mounting credit card bills, medical expenses, or a mortgage you cannot afford, it can feel like a never-ending cycle of financial hardship. A consumer protection lawyer can step in to provide the guidance and support you need to deal with these challenging situations.

You may check your credit report and find that there is negative information. Debt collectors may contact you and say you owe them money, but you believe they are wrong. Just because someone says you owe them money does not mean it is always true. You can dispute the debt directly by contacting the credit bureau or the debt collector. You may even have to defend a lawsuit in court when the debt collector tries to sue you to collect an old or invalid debt.

Either way, you should hire a consumer protection attorney today to protect your legal rights if you want to dispute debt. You may even play offense by filing a lawsuit against someone refusing to remove negative information or invalidly trying to collect on a debt. Not only can you successfully dispute the debt, but you may also receive damages for the wrongful conduct.

You have certain legal rights when a creditor or debt collector reports negative information about you to a credit bureau. The law gives you the right to fight back, and the credit bureau must investigate when you dispute the validity of information on your credit report. When debt collectors try to get your money, they are the ones who have the burden of proof to show that your debt is valid.

You should hire a consumer protection lawyer when debt collectors harass you because there may be several things going on financially with which a FCRA attorney can help. These attorneys are well-versed in consumer protection laws and regulations, and they understand debt collection practices. They can assess your financial situation, evaluate the validity of your debt, and devise a plan to dispute or negotiate with creditors. Depending on your type of case, you may not even have to pay them anything upfront for their legal services.

Debt Collectors Cut Corners and Make Mistakes

A debt dispute lawyer provides legal support, helps challenge debts, and protects your rights against collectors.

Debt collectors may have sent you a notice or tried calling to tell you you owe them money. However, they are only sometimes accurate. Debt collectors often buy large tranches of debt from creditors to collect from as many people as possible. Along the way, they may cut corners in any way possible or consciously try to collect an old debt you no longer owe (even though they are breaking the law). Alternatively, debt collectors may inadvertently try to collect a debt that you either no longer owe or is past the applicable statute of limitations. Either way, you may need to fight back to prove that you do not owe money (even though the burden of proof should be on the debt collector to show that you have the debt).

Debt collectors often use the tactic of trying to steamroll and intimidate people whom they contact. They may figure they can make a lot of noise and threats, and you will do whatever they want to make them disappear. They may not even have all the facts when contacting you and may have read off a paper that you owe money without doing any other type of investigation. However, it is on you to fight back, and you must take affirmative steps to address the situation.

Debt Collectors Can Wrongfully Try to Get Your Money 

There are numerous ways that a debt collector can be trying to get you to pay what you do not owe, including:

  • Trying to collect a debt that you already paid
  • Trying to collect a debt that the statute of limitations barres
  • Trying to collect more than you owe on the debt
  • Making up a debt that you never owed in the first place in an attempt to intimidate you into paying

In any of these instances, the debt collector is making a mistake. If you do not know you have the right to speak up, you can end up paying a bad debt you do not owe. Fear is one of the most essential tools in a debt collector’s arsenal, and they may bank on the fact that you may be too afraid to challenge them under any circumstances. You will lose some of that fear when you have a consumer protection lawyer dispute the debt on your behalf.

Do Not Ignore the Debt Collector When You Do Not Owe Money

It is best to pay attention to any notice informing you that you owe a debt collector money. The notice or phone call is just the first step in the process, and there may be a couple more attempts to contact you. Then, the debt collector may file a lawsuit against you in state court, seeking to obtain a judgment against you. If you ignore debt collectors, there is a higher likelihood that they will file a lawsuit that you will need to defend. The effort to collect may result from a misunderstanding as opposed to something more nefarious at play. A consumer protection attorney can help you clear up any issues and dismiss a possible lawsuit against you.

Debt Collectors Can Still Obtain a Default Judgment Against You

If the debt collector sues you and you do not attend court, you may lose your right to fight back. Failure to participate in the court case can lead to a default judgment against you; then, it does not matter if you owe the money or not in the first place. The debt collector will collect against the judgment, potentially leading to the seizure of your bank account or the garnishment of your earnings. You can stop all that from happening by showing up in court with a consumer protection attorney. Debt collectors may even have to drop their lawsuit when they see that you fully understand that the debt is invalid and they do not have the proof to win their case in court.

You Must Show Up in Court to Fight the Debt Collector

You must still participate if you believe you do not owe this debt. Usually, you may not want to speak with debt collectors because you are embarrassed and ashamed that you owe money. However, if they are incorrect, it may be in your interest to talk to them and explain why they are wrong, and you do not owe the money. It may be even more effective for you to approach the debt collector with the help of a consumer protection attorney. Debt collectors may be more inclined to listen to you when they hear an attorney speaking on your behalf.

You need a consumer protection attorney to explain the myriad of legal rights that you have under federal and state law. You may not even know when a creditor or debt collector has broken the law in a way that can entitle you to financial compensation. Further, a consumer protection lawyer can explain when you can push back on certain debts and wrongful information on your credit report.

You Can File a Lawsuit Against the Debt Collector Under the FDCPA

You can sue a debt collector under the FDCPA for wrongful collection practices and seek compensation for damages.

If the debt collector wrongfully sues you for a debt you do not owe, you can take legal action against them. The Fair Debt Collection Practices Act is a statute that imposes a truth in collection obligation. The debt collector cannot try to collect invalid debts from you. If they do, they may owe you money in a lawsuit, and it does not matter whether they consciously tried to violate the law.

When debt collectors violate the FDCPA, they can be responsible for paying you the following in damages:

  • Up to $1,000 in statutory damages when a debt collector violates the law (this is a one-time assessment, and it is not on a per-violation basis)
  • The actual financial losses that you suffered from the wrongful collection of debt
  • The emotional distress damages that you have endured from dealing with the debt collector
  • Reasonable attorney’s costs and fees

The FDCPA does not allow you to recover punitive damages, but you may have a legal right to these damages when you file a lawsuit under state law. Your consumer protection lawyer will advise you on whether filing a lawsuit under federal or state law is better. In some cases, state law is even more expansive about giving you additional rights and remedies.

Why You Need a Consumer Protection Attorney to Help You

Suppose you have any debt you believe to be in dispute and are getting the runaround from the debt collector or creditor. In that case, you should consider hiring a consumer protection attorney. You likely have several financial problems and can benefit from the help a consumer protection lawyer may provide. Not only may you need someone who can speak to a debt collector effectively, but the same consumer protection lawyer can file a lawsuit on your behalf if anyone is breaking the law.

Debt collectors or creditors may be more likely to listen if they see that you have a consumer protection attorney representing you. They know they can be accountable if you prove they were breaking the law, and they are more likely to listen to a consumer protection lawyer to avoid potential consequences.

Your Consumer Protection Attorney Can Help You File a Lawsuit Under the FCRA

In addition, a consumer protection lawyer can file a lawsuit on your behalf under the Fair Credit Reporting Act if a creditor reports incorrect information to your credit report. These attorneys are familiar with the FDCPA and other laws that safeguard consumers from abusive and deceptive debt collection tactics. By having a lawyer by your side, you can ensure that you are not subject to harassment or unfair treatment.

Alternatively, you can file a lawsuit against a credit bureau when they have failed to conduct a reasonable investigation or when you have disputed incorrect information on your credit report. Then, you may qualify for damages similar to those you would have received under the FCRA, with the addition of possible punitive damages if you show a willful violation of the law.

Sometimes, hiring a consumer protection lawyer costs you nothing out of your pocket. If you file a lawsuit, they get paid by the defendant if you win your case. If you are not filing a lawsuit, you may need to pay a lawyer to dispute your debt. However, what a consumer protection lawyer may charge you is often much less than you might pay a credit repair service. These services are known for charging unreasonable fees for services you can do on your own or receive more effective representation from a consumer protection lawyer.

Hire a Consumer Protection Lawyer Now

Time is of the essence when you need a consumer protection attorney. Debt collectors may file a lawsuit against you shortly after trying to contact you. They may be trying to determine whether you intend to pay them when they call you, and they can move straight to suing you. If you do not have a consumer protection attorney by your side, you can even lose a lawsuit when you never owed money in the first place. It is better to err on the side of caution by hiring a consumer protection lawyer now to learn more about your legal rights. In a best-case scenario, you can clear up any disagreements with the debt collector. You can even negotiate a solution to your problem.

Debt issues can be challenging, but you do not have to go through them alone. Hiring a debt dispute lawyer can provide you with the knowledge, experience, and support you need to handle debt collection practices and protect your rights as a consumer. Take the first step towards financial freedom by consulting with a debt dispute lawyer today.