http://www.flickr.com/photos/wtfclem/4542125421/
95% of those lawsuits probably go unanswered, so the debt collectors end up with a judgment for the debt plus interest (and possibly other—unlawful—charges) plus attorney fees and costs. Then, they find the debtors’ bank accounts and employers and start collecting by garnishing wages, seizing funds from bank accounts, and worse.
If you are a tenant, the system works roughly the same, although landlords do not usually have quite so many people to sue.
So what do you do if you find out someone is suing you?
Service of process
First of all, you may not have been served properly. However, this does not mean you can ignore the lawsuit. This is very important. Debt collectors in particular may not bother to find a correct and up-to-date address for you. However, the lawsuit may still be in progress even though you are not participating.
Proper service means (1) handing you a copy of the summons and complaint, (2) leaving a copy with a person “of suitable age and discretion” at your last-known address, or (3) various more involved ways that debt collectors will rarely bother to use. Ducking service is not a very good idea. It usually doesn’t work, for starters, and the debt collector may just go and carry on with the lawsuit anyway.
Answering a summons and complaint
If you do get served with a summons and complaint, find one lying on your doorstep, or hear about a lawsuit against you in some other way, you have twenty days to respond. A response is not simply calling the lawyer whose signature appears at the bottom of the documents. A valid response probably means a written answer admitting or denying the allegations in the complaint, delivered to the plaintiff’s attorney.
Answering is a delicate business. If you do not make certain defenses (like improper service of the summons and complaint or expiration of the statute of limitations), you lose the right to make them. Now is the time to talk to a lawyer. Where do you find one? Start looking for a consumer rights lawyer right here.
Finding a consumer lawyer
Let’s dispel a common misconception: It doesn’t cost anything to call a lawyer. Ask right away if they give free consultations. Most lawyers do.
Let’s dispel another: It doesn’t cost $10,000+ to hire a lawyer. Debt buyer defense is rarely work-intensive, although it will take up some time. I am aware of several consumer lawyers, including myself, who take debt collection defense cases based on a percentage of the alleged debt.
But here is the most important part: call a lawyer as soon as you get served with a lawsuit or find out you are being sued. If you do not answer, you lose. You will have no right or opportunity to challenge the debt obligation, the amount of the debt, the additional interest, charges, or attorney fees, or anything else about the debt.
So call that lawyer.
{ 6 comments… read them below or add one }
Hi Kathleen:
This is a public blog, and I do not offer legal advice in this forum. Also, I do not practice law in South Carolina. It sounds like you need an attorney, and you can find one right here.
p.s. – You might not want to go around leaving your phone number in public blog comments. I redacted it to protect your privacy.
I need help. I have been threatened by an internet payday advance company to pay a debt that I do not owe. A former employee used my name as an employment reference. This company has violated FDCPA. Uncountless times. I live in South Carolina. I have recorded a conversation that proves disclosure of the debt to a 3rd party-me, They provided me with her social security number and claim to have mine which will be used to file in court. Told me I would be going to jail if I did not pay her debt today. Threat to my credit. Claim they are researching my financials. They are Interim Cash Reno NV- and I know they don’t exist there. I have over 20 years in the collection industry. My fear is this is an Internet company from an unknown location. They just could do somthing like file a suite against me. And I don’t owe this. I have research. We have no protection laws against these companies in the United States. Almost every state I have researched is filing claims. But these companies wont awnser they disappear and re establish in another state under a new name. I am terrified. I am trying to sue them but can’t find them. We need to stop talking about these problems and really do somthing about it. I feel we can enforce protection for victims like me. At the right time I am going to go public and will need a good attorney beside me. Please respond.
Kathleen Burkart
xxx-xxx-xxxx
South Carolina USA
You have 30 days to dispute the debt and ask for validation, which you should do in writing. I would also suggest sending it by certified mail. Let them know that they have the wrong person, if you think they do, and tell them why.
How do you handle phone calls from debt collectors when it isn’t your debt? They seem to have just looked up a name in the phone book and started calling me. They have given me bits and pieces of info on birth date (that doesn’t match mine) and I am pretty sure they don’t have my SSN or address.
My concern is that if I respond in writing to tell them it isn’t me then they will associate my address with this debt as well. At the moment I am in the do-nothing camp. From what I have read they have to send you information in writing for it to be official but I have not received anything (probably because they have the wrong person and their only connection to me is my phone number).
Hi Tina: We do not give legal advice on this blog. Please look for a consumer lawyer in your state. You can start looking in our consumer lawyer directory.
I am not sure if people ask for free consultation from the lawyers, as most of them think that they charge a fee for advices. I have heard earlier also, it that the lawyer can charge a fee, only if he provides you a service.