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Stop Debt Collection Lawsuits

 

Debt collectors often file hundreds of collection lawsuits at once with little or no evidence that they actually own the accounts they’re suing on.

 

There are many defenses that consumers can use to defend against debt collection lawsuits. If consumers seek legal representation, the statistics show that they win the majority of the time.

 

One defense is to challenge the validity of the assignment of the account. Debt collectors and “debt buyers” often purchase credit card accounts for a few cents on the dollar, but then file lawsuits to get the full amount. The problem is this: when they buy the accounts, they usually don’t get all of the paperwork that shows they own the debt. Under the court rules, they must have evidence of the assignment to prevail.

 

Another defense is to challenge whether the debt collector is licensed. Under Massachusetts law, debt collectors must obtain a license pursuant to Massachusetts General Laws Chapter 93, Section 24. Our office has successfully argued that failing to get such a license is illegal and may void the judgment.

 

We gladly accept cases dealing with virtually all of these debt buyers, including:

 

 

These debt collection lawsuits are filed by just a handful of Massachusetts debt collection law firms. These include:

 

 

By the way, collection law firms are “debt collectors” under the Fair Debt Collection Practices Act, so if they act unfairly, we’re not afraid to sue them, either.

 

If consumers don’t respond to the summons that is served by a debt collector (usually delivered by the sheriff), there can be terrible consequences.

 

  • Debt collectors win close to 90% of those lawsuits only because many consumers are scared or confused about what to do next. Oftentimes, the court papers are confusing, or consumers aren’t even sure that the documents are real.

 

  • Unless you respond to a debt-collection lawsuit – a response is typically required within 20 days – the collector can get a judgment against you for the full amount without having to provide evidence to the court.

 

  • Under Massachusetts law, the judgment is then good for 20 years and bears interest at 12%. This means that the amount of the judgment could double in only about eight years.

 

  • If the judgment isn’t paid, the collectors can put a lien on someone’s house, garnish their pay, or take money out of their bank account. In extreme cases, they could even take your car or other belongings in order to sell them.

 

  • If a consumer ignores the judgment, the debt collector can have them hauled into court on a civil arrest warrant called a “capias.” The warrant is not technically for arrest, but for contempt for failure to come to a payment hearing.

 

If you’ve been sued by a debt collector, act quickly – you usually only have 20 days to respond. Contact our office for a no-risk case evaluation.