Can you sue a company for debt collection?

Yes, You Can Sue Your Debt Collectors! We use the written and verbal communications between you and your collectors to prove that your credit companies have violated the law—and we hold them accountable for their errors with fees and penalties.

How can I stop a collection agency from suing me?

If you’re being sued for debt and you disagree with any or all of the information in the debt collection lawsuit, you will want to file a response to the lawsuit in court. You will then have the opportunity to contest what’s in the lawsuit or ask the court to dismiss it altogether.

How long does a company have to sue you for a debt?

How Long Can a Debt Collector Pursue an Old Debt? Each state has a law referred to as a statute of limitations that spells out the time period during which a creditor or collector may sue borrowers to collect debts. In most states, they run between four and six years after the last payment was made on the debt.

What is the best way to dispute a collection?

If you doubt that you owe a debt, or that the amount owed is not accurate, your best recourse is to send a debt dispute letter to the collection agency asking that the debt be validated.

Can a collection agency Sue you for debt that is no longer enforceable?

If you’re sued for a debt that’s outside the statute of limitations, you may be able to have the lawsuit dismissed if you have proof that the debt is no longer enforceable. However, failing show up in court gives the collection agency a chance to win a default judgment against you. This means the court has ordered you to pay the debt.

Can a law firm be used as a collection agency?

Though these practices can come from any type of creditor, we see them most often employed by debt collection agencies. We know that creditors may utilize the help of a collection agency to recover a consumer debt. In much the same way, collection agencies may in turn seek help in collecting the debt from an attorney or law firm.

What happens when a judgment is sold to a collection agency?

Debt Transfer. Although it may appear that the original creditor sold your debt to a collection agency, if the original creditor already obtained a judgment against you, it’s more likely that the collection agency is merely collecting the judgment for the original creditor in exchange for a portion of the proceeds.

Can a debt collection firm communicate with a debt settlement attorney?

If the debt collection firm communicates with the debtor after notice of the debt settlement attorney’s appointment, such communication will likely be deemed improper. The debt settlement attorney handles all negotiations with the debt collection firm.