Being Sued?

If you are being sued for a consumer debt such as credit card debt or a student loan, there may be defenses available to you, even if you believe that you owe the debt and cannot repay it.

The collector suing you may be working on behalf of a "debt buyer" who purchased the debt from the original creditor and may not be able to prove in court that it owns the debt. If you are being sued by an entity that is not the same company as the credit card you used, chances are it is a debt buyer. Asset Acceptance, CACH LLC, Encore Capital Group, LVNV Funding, Midland Credit Management, Portfolio Recovery Associates, and RJM Acquisitions are some of the largest debt buyers.

These debt buyers pay as little as three to seven cents on the dollar for buying up your debt and then sue you for the entire amount claimed by your original creditor, plus interest and attorney fees. However, the debt buyers usually do not have documents proving their right to collect the debt at all. Suing you for the entire amount plus interest and attorney fees is a violation of fair debt collection laws.

Do not assume you have no defenses and let a default judgment be entered against you. Contact us right away if you have been served papers to find out what defenses might be available to you.

Setting Aside a Default Judgment

Unfortunately, you may not be aware that a debt buyer has filed a lawsuit and received a judgment against you if you were never properly served. You might only find out when you start receiving calls from someone trying to collect on that judgment. If that is the case, contact us immediately. If you act quickly, default judgments can be set aside if you can show that you had no actual notice of the lawsuit because the summons was never delivered to you.

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