Posted by on Feb 8, 2021 in Finance | Comments Off on Know About What You Should Do If a Debt Collector Has Sued You

Know About What You Should Do If a Debt Collector Has Sued You

There has been an influx in litigation brought by debt collectors against people over old debts over the last few years. You can defend yourself without having an expensive lawyer if you are being sued.Do you want to learn more? read here

The person being sued gives up in most debt cases and either settles with the debt collector by promising to pay the entire amount in dispute over time or fails to respond altogether. Failure to respond to a complaint is referred to as a “default” and results in a verdict for the whole amount sued. Wages and bank accounts may be seized until a verdict is entered.

What is debt? This seems almost like a no-brainer, doesn’t it? But that’s not it. “Debt” means money that someone claims to owe you. Note that, in the usual sense of the term, you might not necessarily owe money. In the first place, you may never have lent it; you may have paid it off or discharged it in bankruptcy; or the debt may not be true for any number of reasons (for example, it could be an invalid finance charge). Because if a corporation sues you for money, it says you owe it, you’re being sued for a debt, and if you don’t protect yourself, you’re going to end up having a decision against you, regardless of whether you’ve actually owed the claimant any money.

In general, you could be sued by two types of people: the actual creditor who says you initially owed money (such as a bank or merchant); or you could be sued or otherwise threatened by a “debt collector.” I also refer to debt collectors as “third-party debt collectors” to reinforce the fact that other people have bought the debt from these individuals or businesses.

Third-party debt collectors are individuals or businesses who, by intrusive phone calls, threatening letters, or litigation, purchase alleged debt for pennies on the dollar and then attempt to recover it. You certainly have never heard of a third-party debt collector before, and under a number of changing names, most collectors decide to recover debts. What makes them “third-party” is that before the debt they are seeking to raise, they never had a direct relationship with you.