10 Very Good Reasons to Defend Agasint Consumer Collection Lawsuit:
- You may have a Good Defense - I recently represented a client in a case where I succeeded in defeating the creditors claim of over sixty three thousand dollars by
proving that the creditor's claim was barred by the Statute of Limitations. The major reason consumers have complete defense in a significant number of collection cases is because of
the explosive expansion of the multi-billion dollar distressed debt buying industry, in which debt collectors purchase literally millions of dollars of old debts for pennies on the dollar that the
original creditors have written off. These debt claims are subject to legitimate defenses and or reasonable settlement.
- You May Help Stop the Systematic Abuse of the Justice System - Debt buyers sue with little or no evidence to prove that the consumer owes the money, that the debt buyer in fact
owns the debt, or even that they are suing the right consumer. Consumers fare much better in court when they obtain legal representation. In numerous cases you may have a legitimate defense to
the claim being made against you.
- Counterclaims Can Result in the Recovery of Damages and Attorney Fees - In many collection actions the consumer will have significant defenses and counterclaims. Being able to
raise consumer claims as counterclaims has both advantages and disadvantages. Some advantages are that filing fees are avoided and federal claims stay in state court. Legal representation can thus
result not only in dismissal of the collector's case but also in the consumer's recovery of significant damages and attorney fees.
- Prevailing in a Collection Action May Imporve Your Credit Rating - Consumers are rightfully concerned about their credit rating, and prevailing in the collection action can have
an impact on their credit record. If the case is dismissed the consumer can take action to insure that credit reports indicate that the current balance of the debt is now reported as zero.
- Defending against a Collection Lawsuit May Alleviate Emotional Distress - Being sued can be extremely upsetting. You may never have been sued in your whole life and you can
become very distressed over a suit, even for a relatively minor debt. That distress can have medical consequences, which can be accentuated when you can not obtain legal representation to explain to
them what is happening and to defend your interests.
- You Should Take Action to Protect Your Assets and Income - A judgement for a collector can have serious consequences for your assets and income. Bank accounts, even the those
containing only exempt funds, can be frozen for days or even weeks, and may eventually be seized unless exemptions are proerly pursued.
- You May FDCPA, FCRA, and Other Consumer Claims - Representing consumers in collection actions can lead to subsequent affirmative actions under the FDCPA, FCRA, and other federal
and state statutes, resulting in significant actual and statutory damages and attorney fees, either on an individual or classwide basis.
- A Debt Collector May Have to Pay Your Attorney Fees - There are a number of ways that a prevailing consumer can recover attorney fees from the collector. Fees may be recovered
for prevailing on certain counterclaims, or as a result of the collector's vexatious litigation, or by statue in about one-third of the states.