Getting served with a lawsuit from a debt collector can be alarming. The papers may say you owe thousands of dollars, and the collector may be asking a Maryland court to enter a judgment against you.
But a lawsuit is not the same thing as a judgment. The debt collector still has to establish its right to collect the debt, and you have the right to defend yourself.
The worst thing you can do is ignore the lawsuit.
First, Answer the Lawsuit
If a debt collector sues you, read the complaint and the other court papers carefully. The papers will tell you what court the case is in and what you need to do to respond.
Do not assume that admitting you owe the money is the easiest way to make the lawsuit go away. If you do not respond by the deadline, the court may enter a default judgment against you. Once a judgment is entered, the collector may have additional collection remedies available under Maryland law.
Responding to the lawsuit does not necessarily mean that you agree the debt is valid. It means you are requiring the collector to prove its case.
Make the Collector Prove the Debt
One of the first questions is simple: Can the collector prove that you owe this particular debt?
This can become especially important when the plaintiff is a debt buyer rather than the original creditor. Maryland law requires a debt buyer or a collector acting for a debt buyer to possess specified documentation before initiating a consumer debt collection action. Depending on the case, that documentation can include proof that the account exists, records showing the debt, information about the terms of the account, and proof that the plaintiff owns the debt.
If you do not believe you owe the debt at all, there may be specific defenses available to you.
Check the Amount
Even if you recognize the account, check the amount being claimed.
Maryland’s rules require documentation concerning the amount of consumer debt, including an accounting of principal, interest, fees, charges, payments, and credits.
Look for payments you already made, credits that were never applied, or fees and interest that may not be permitted. A debt can be legitimate while the amount claimed in the lawsuit is wrong.
Check the Age of the Debt
The age of the debt can also matter.
Maryland generally requires a civil action to be filed within three years after the claim accrues, unless another statute provides a different limitations period. Maryland law also prohibits a creditor or collector from initiating a consumer debt collection action after the applicable limitations period has expired.
The limitations period can depend on the type of debt and the circumstances, so do not assume that the date of the last payment automatically answers the question.
Look for Violations of Debt Collection Laws
A debt collector’s conduct can create legal issues separate from whether the debt itself is valid.
The federal Fair Debt Collection Practices Act (FDCPA) prohibits certain abusive, deceptive, and unfair collection practices. Maryland has two specific laws that often come into play as well: the Maryland Consumer Debt Collection Act (MCDCA) and the Maryland Consumer Protection Act (MCPA). Debt collectors also generally must provide validation information about the debt, including the creditor’s name, the amount claimed, and information about disputing the debt.
Collectors are not allowed to use intimidation, deception, or harassment to collect a debt.
What to Do After Being Sued
• Do not ignore the complaint. Put the response deadline on your calendar.
• Read the allegations carefully. Determine exactly what debt, amount, and account the collector says you owe.
• Gather your records. Find account statements, payment confirmations, correspondence, and prior collection letters.
• Check who is suing you. Determine whether it is the original creditor, a debt buyer, or another collector.
• Check the dates. The age of the debt may affect whether the lawsuit was filed on time.
• Keep every document. Save the complaint, summons, collection letters, and anything you send or receive.
How a Maryland Debt Collection Attorney Can Help
A debt collection lawsuit does not mean the collector automatically wins. The plaintiff still has to establish its claim, and Maryland law places documentation requirements on debt buyers and collectors acting for them.
If you have been sued by a debt collector, do not wait until a judgment is entered to look at your options. An attorney from Holland Law Firm can review the lawsuit, the underlying debt, the amount claimed, and the collector’s conduct to determine what defenses or claims may be available.
Contact our team for a review of your case.