Debt Collection Lawsuits
It’s a dreaded sound that no one wants to hear after receiving threats from a debt collector that a lawsuit is coming – a knock at the door. Whether it’s a sheriff’s deputy or a hired process server, the feeling of angst and anxiety can be overwhelming. But there’s really no reason to despair.
Thousands of collection lawsuits are filed across the state of Georgia every year. You may even believe that because an official complaint was filed with the court that you must owe the debt, because how can a company lie about what you owe? That’s obviously a rhetorical question, and there’s only TWO THINGS you need to do to increase your chances of winning a debt collection lawsuit by tenfold:
- Open the letter with the summons and complaint and read it.
- Respond to the complaint within 30 days of the date you were served.
If you’ve been sued by a debt collector, you likely won’t even recognize the name of the company suing you. You’ll think “I didn’t borrow or buy anything from these people, so why are they suing me?” Well, you probably have never had any interaction with the debt collection company because all they did was buy your account information and the right to due you from your original creditor.
Debt collection companies like Midland Funding, LLC, Portfolio Recovery Associates, LLC, and Cach, LLC sue thousands of people in the hope that NO ONE will respond to their lawsuits. If no one responds to the lawsuit (in Georgia within 30 days of being served), Midland will get a judgment by default and can start garnishing wages and bank accounts shortly after.
In fact, debt buyers’ entire business model relies on the fact that 98% of people served with a lawsuit never respond. It’s a sad situation because many times, companies like Midland and Portfolio never receive any supporting documentation from the original creditor – usually a credit card company. Without supporting documentation, they can’t prove you owe the debt or how much you owe. Without this documentary evidence, a court will likely dismiss their case with prejudice, which means that they can never file suit against you again for the debt they failed to prove you owe. If everyone who a collection company sued actually appropriately responded to the lawsuit, these companies would likely be facing a bankruptcy of their own.
If you have been sued over an old debt, you need to act. You need to meet with an attorney to evaluate what defenses you may have and how best to deal with this debt issue.