Dealing with a dispute over credit card debt can be confusing and frustrating. It may be one of your greatest nightmares when someone is trying to collect money that you have either paid off already or never even owed in the first place. Debt collectors do not have unlimited rights to do whatever they want, and federal and state laws impose an outer limit on their conduct. However, you may find that you are getting nowhere on your own. Then, you may need to hire a consumer debt protection attorney to take action on your behalf. Your lawyer can talk to the debt collectors, or they may even file a lawsuit against them in federal or state court.
You should hire a consumer protection attorney when the debt collector is not listening to you or is suing you for the money you do not owe. They will communicate with the creditors on your behalf, protect your rights, and ensure that no one is subjecting you to unfair practices. Your attorney can also file a lawsuit under the Fair Debt Collection Practices Act (FDCPA), which can result in financial compensation. Hiring a FDCPA lawyer does not cost you anything out of your pocket; the defendant may even need to pay their fee if you file a lawsuit and win your case. Thus, you take no risk in getting legal help for your case.
What Happens to Bad Credit Card Debt?
A bank holds your credit card debt, and these financial institutions are subject to strict accounting rules that require them to write off bad debt after a certain amount of time. They cannot continue carrying this debt on their balance sheet, hoping you will eventually have to pay it back. Accounting rules require the bank to take the financial hit and remove bad debt from its balance sheet.
However, the bank wants compensation for your debt and may sell tranches of bad debt to a debt collector. Banks will get paid a fraction of the original debt they were due, depending on the age of the debt and other factors. Chances are that a debt collector has purchased your debt for pennies on the dollar. However, the debt remains the face value of the original amount of money you owe, which is what you need to repay the debt collector.
Once they own your debt, debt collectors will take steps to get you to pay them. They may try to contact you initially, whether it is through a letter or phone call. Federal and state law strictly controls what debt collectors can do when contacting you, but they can still do their job.
Debt collectors may use the court system to compel you to pay your debt. Since they own the right to repayment, they may file a lawsuit against you in court. If they win, debt collectors will receive a judgment that they can work to collect. Under state law, they can seize your assets, such as bank accounts in your name, and garnish your earnings up to the maximum allowable amount. Debt collectors can even push you into bankruptcy, causing you to lose some of your assets.
Therefore, it is in your interest to fight back to the fullest extent possible when a debt collector is trying to collect bad credit card debt from you. Your financial future may be at stake, so when you need to mount a battle against someone trying to collect bad credit card debt, you should consider hiring a consumer protection attorney for your case.
A Consumer Protection Lawyer Can Contest the Validity of the Debt Itself
Debt collectors may file a lawsuit against you over invalid credit card debt. They may have wanted to take an express route to court because they have not adequately researched the debt and want to get paid, and they may not expect you to show up and fight back. In their practice, they take large amounts of cases to court and obtain default judgments against debtors who do not show up to fight. Either way, you cannot afford to ignore the legal process. Even if the debt was never valid in the first place, debt collectors can garnish your earnings and even take your bank account if they can obtain a judgment against you. The only way to stop this is to show up in court.
You should hire a consumer protection attorney to defend against the lawsuit in court. You may not know that debt collectors have the legal obligation to prove the existence of the debt before they can obtain a judgment against you. A consumer protection attorney knows how to challenge debt collectors at a hearing in court, and they understand how to point out flaws in any evidence a debt collector uses against you to prove that the debt was invalid.
A debt may also be illegitimate if someone else opened a credit card in your name through identity theft. The law provides that you are not responsible for paying these debts so long as you promptly report the identity theft after learning of it. However, some unscrupulous credit card companies and debt collectors may break the law and try to collect this debt from you.
There are state laws that can allow you to sue the debt collector who is trying to collect a debt that resulted from identity theft. You should hire a consumer protection lawyer to protect your rights and potentially help you take legal action if you have been the victim of identity theft.
A Consumer Protection Lawyer Can Help Stop Abusive Debt Collection Practices
When debt collectors have purchased your debt, they may try several pressure tactics to get you to pay. They have likely made a massive profit if you pay what you owe because they obtained the debt for so little. Thus, they will view it as a "quick score" if they can get you to pay without going to court to get a judgment. Accordingly, debt collectors may harass or threaten you to scare you into repaying. Under federal law, the debt collector is not allowed to do the following:
- Debt Collectors Call you between the hours of 9 PM and 8 AM to discuss your debt
- Threaten you or use profanity when they speak with you
- Reveal the existence of your debt to a third party, such as your boss or friends (the only person they can speak with about your debt is your spouse since they are the same legal entity as you)
- Use misrepresentation in trying to collect your debt, such as pretending to be a lawyer
- Try to collect an invalid debt
- Continue to contact you after you have informed the debt collector that you wanted them to stop
Here, a consumer protection attorney can help your case to work to get illegal debt collection efforts to stop. A consumer protection lawyer can speak directly to the debt collector, or they can file a legal complaint on your behalf. Your attorney can even file a lawsuit directly against the debt collector.
You Cannot Get Anyone to Listen to You
You may get the runaround from the credit card company or the debt collector. The claimed debt is hanging over your head, and you believe that you have documentation that shows that it is invalid or that the debt collector does not have adequate proof of the debt. No matter what, you may still have trouble getting anyone to take you seriously.
Debt collectors may persist in their illegal conduct if you do not have a credible threat of consequences. When a creditor or debt collector sees that you have hired a consumer protection lawyer, they may look at you differently and be more ready to listen. Debt collectors understand that you now know your legal rights, which include the possibility of filing a lawsuit directly against them for illegal conduct.
You Need to Hold the Creditor Accountable
The original creditor may have furnished information to the credit bureau that you failed to repay your debt, and this report will have grave consequences on your credit score. You may be unable to borrow money when you need it to purchase things like a home or car.
Federal law requires that creditors only furnish accurate information for your credit report. If they have made a wrong report, you can file a lawsuit against the creditor, and they will need to pay you damages.
There Are Many Situations Where You Can Dispute a Credit Card Debt
The best time to vigorously dispute credit card debt is when you first learn that someone claims you owe money. If you engage early in the process, you can head off the possibility of a lawsuit in the future. Even if you win in court, you do not want the hassle or expense of fighting a lawsuit against you.
If you cannot persuade the debt collector that the claimed debt is invalid, you may need to engage a consumer protection attorney to deal with the debt collectors. You may want to get help from an attorney rather than from a credit repair service because you work with someone who owes you fiduciary duties, and they must act in your interest. A credit repair service may charge you exorbitant fees when providing you very little value.
Filing a Lawsuit for Invalid Debt Collection
The primary federal law that keeps a debt collector from trying to collect an old or invalid debt is the Fair Debt Collection Practices Act. Debt collectors do not have to consciously violate the law to be liable to you for damages. You can file a lawsuit against them seeking damages if they do anything illegal concerning their job. You can have the right to a substantial amount of money depending on how you have suffered.
Debt collectors have been the target of legal action because they have not taken the steps to verify the debt's validity before they take you to court. Your consumer protection attorney can take legal action if that is what the debt collector has done to you.
FDCPA lawsuit damages may include the following:
- Up to $1,000 in statutory damages when the debt collector has broken the law (this is a one-time payment, and it does not require that you have suffered actual damages from the debt collector's actions)
- Actual losses that you have suffered (for example, damages resulting from harm to your credit report or time that you had to spend dealing with the debt collector)
- Emotional distress and other non-economic losses from the debt collector's illegal conduct
- Reasonable attorney's fees and court costs
You cannot obtain punitive damages in an FDCPA lawsuit, but state law provides that debt collectors may have to pay punitive damages for their conduct. For example, suppose the debt collector was part of a fraudulent scheme of trying to collect debt before knowing it was invalid. In that case, your consumer protection lawyer may advise you to file a claim under state law, where you can obtain punitive damages.
You Do Not Have to Pay Money Upfront For a Consumer Protection Lawyer
You do not have to pay money upfront when you hire a consumer protection lawyer to file a lawsuit on your behalf, nor will they ask for any retainer or send you any hourly bills. If your lawyer successfully reaches a favorable outcome, they will typically receive a percentage of the amount recovered as their fee. This arrangement means you will not have to worry about paying them directly. Instead, their fee will come from the settlement or judgment amount obtained through their representation. The defendant may even be responsible for paying your lawyer’s fees, meaning you will get to keep your entire settlement or award.
Call A Knowledgeable Consumer Debt Attorney Today
When dealing with credit card debt disputes, it is essential to know when to seek the guidance of a lawyer. Whether you are facing legal action, questioning the debt's validity, or struggling with the debt collection process, a lawyer can provide you with experience and support. Having a consumer protection attorney attorney on your side can increase your chances of achieving a favorable outcome and finding relief from credit card debt.