Are you being sued by a debt buyer? If you have, you’re not alone. Our office has seen a significant increase in clients coming in with lawsuits from debt buyers.
What is a Debt Buyer
A debt buyer is a company that purchases delinquent debt from original banks and credit card companies, these companies then utilize the states court systems to collect on the acquired accounts that have been charged off from the original creditors.
Practices of Debt Buyers
Debt buyers will purchase these charged off debts from original creditors after they have charged them off their books. Many debt buyers are able to acquire debts at a very low price, sometimes pennies on the dollar. The debt buyers main goal is to make money, and the easiest way for them to make money is to use the state’s court system to do that. Their main goal isn’t to string you along in a lengthy court battle, it’s to summons you in hopes, you don’t show up. Approximately 90% of lawsuits filed by debt buyers end in a default judgment, this means by you not showing up the judge will grant them exactly what they are asking for and sometimes this will include lawyers cost and interest. Basically, you have forfeited all your rights and they get everything they want.
Why is it important you show up
If you have been served with a summons remember you have rights to legal representation. You have the right to make sure the debt is yours. It must be timely, accurate and verifiable. Often times when these debts are purchased it may be bought by the highest bidder in online, and it is often sold more than once. The information they purchase may even be on a spreadsheet and can easily prone to errors. If you are being sued by one of these companies make sure you do your due diligence and show up. Do not allow a default judgment, make them prove to you it is your debt. If you are being sued and need further assistance, please reach out to one of our attorneys.