Debt Collection Defense Isn’t Easy
In our modern times, people commonly receive collections letters or get served with a lawsuit by creditors and collectors they never previously never heard of. This is often a result of creditors assigning debts to collections firms, or selling the debt out to debt buying companies.
If you received a collections lawsuit, the company filing the suit might not reflect the same company that loaned you the line of credit in the first place. When this occurs, you are likely experiencing a debt buyer initiating the lawsuit.
The good news is that federal and state laws afford you the right to demand debt verification. If the debt buyer or collections agency cannot produce the necessary documentation, your debt collection defense attorney in South Miami can bring this up in court as a defense to the creditor lawsuit.
What is a Debt Buyer?
A debt buyer is a company that does business by purchasing many debts from original creditors for pennies on the dollar. The debt buying company buys these debts in bulk to obtain them cheaply. This enables them to collect a profit even in scenarios when they can only obtain a small amount on the specific debts.
Once a debt buyer obtains your debt, the original creditor no longer wields any interest in reclaiming the debt. However, the new collector now possesses a legal right to sue you for recollection. Many of these entities will regularly initiate lawsuits against debtors.
If a debt buyer sues you for the collection of a debt, many legal defenses exist that may enable you to challenge their right to collect. Nevertheless, these cases remain challenging for the defense and require the legal intervention from a debt collection defense attorney in South Miami for the best possible outcome.
Missing Paperwork in Debt Buyer Cases
In many states, debt buyers must wield the necessary paperwork that demonstrates an agreement between you and the original creditor. Without this documentation, the company cannot initiate a lawsuit against you, or add interest and legal fees onto the total balance.
In regards to credit card debts, this paperwork typically takes the form of a card member agreement. This document will contain information about what state law applies to a case, as well as how much a debt buyer can collect on both interest, as well as attorney fees.
In many cases, debt buyers will not possess this paperwork, and cannot obtain it from the original creditor. Furthermore, many creditors do not cooperate when debt buyers ask for card member agreements and other documentation. This is because debt buying purchase agreements often contain rhetoric regarding an “as is” purchase by the new company.
Nonetheless, a debt-buying company could also attempt to attach a billing statement to a lawsuit while outlining this as the card member agreement. However, this is not sufficient as a substitute for the actual agreement.
Tactics like this reflect the precise reason a debt collection defense attorney in South Miami remains crucial to obtain a positive outcome in debt collections cases.
No Standing to Sue in Debt Collections Cases
In a legal sense, “standing” means that an individual or business wields a legal interest in a case. This means that the debt buyer must demonstrate that it legally owns your debt.
In these scenarios, a debt buyer does not represent the original company that entered into a contract with you. They can only meet the standing requirement by outlining and demonstrating how the original creditor assigned them the debt. Many courts will require that the new company shows the assignment or purchase agreement regarding your debt for a valid lawsuit.
Inaccurate and Incomplete Credit or Billing History
Referring to an “as-is” debt purchase agreements by debt buyers, they won’t know if the original creditor followed the rules while crediting your payments. This company might also not be in possession of your previous billing statements and documents when you incurred the debt originally.
A qualified and experienced debt collection defense attorney in South Miami can determine and demonstrate that the company cannot outline a solid history regarding your debt.
As a result of the debt buyer’s relationship not involving the originating contract or credit extension, they must rely on records and documents that the original creditor created and maintained. To prove their case, the debt buyer may experience difficulty convincing a court to accept these documents as evidence.
A Debt Collection Defense Attorney in South Miami from the Law Offices of Paul A. Humbert, P.L.
If you are involved in a legal issue with a creditor or debt purchasing company, legal intervention as soon as possible remains crucial to a positive outcome. Legal guidance can help you formulate a strategy that can help you defend against a lawsuit.
In creditor lawsuits, there is no reason to pay more than you owe or to pay for an invalid debt that is not yours to pay. The attorneys from the Law Offices of Paul A. Humbert, P.L. can help defend your legal rights in court, as well as at the negotiating table.
For more information on how a debt collection defense attorney in South Miami from our practice can help you with a legal issue, contact the Law Offices of Paul A. Humbert, P.L. today to schedule a consultation. We can represent your case as an advocate on behalf of your best interests in creditor lawsuits!