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You open your mail and see something alarming: a lawsuit. It’s from a company you don’t recognize, claiming you owe a debt from years ago. It might even be for an amount you don’t remember or have already paid. If this sounds familiar, you’re likely being sued by a debt buyer. Don’t panic, but don’t ignore it either. You have rights, and you may have options to fight back.
Debt buyers are companies that purchase old or charged-off debts from original creditors for pennies on the dollar. Once they own the debt, they try to collect the full amount from you, often through letters, phone calls, and sometimes lawsuits. These debts might be years old, contain errors, or may have already been paid or discharged in bankruptcy. But that doesn’t stop some debt buyers from suing anyway.
The worst thing you can do is nothing. Ignoring a lawsuit can lead to a default judgment against you, which could result in wage garnishment, frozen bank accounts, or damage to your credit. Even if you don’t believe you owe the debt, you still need to respond. Be sure to read the court summons carefully. It will tell you how long you must respond, usually 20 to 30 days. Mark your calendar.
Debt buyers often lack detailed records about the debt they’re suing over. You have the right to request proof that:
If they can’t provide this information, you may be able to get the case dismissed.
Many debts have a time limit for how long they can be legally collected through a lawsuit, called the statute of limitations. If the debt is too old, it may be “time-barred,” and the debt buyer can’t legally sue you (though they might try anyway). This time limit varies by state and by type of debt, so it’s worth confirming with a qualified debt defense attorney.
You don’t have to face this alone. A consumer protection lawyer can review the lawsuit, help you respond properly, and determine if you have a strong defense. In some cases, you might even be able to countersue the debt buyer for violations of the Fair Debt Collection Practices Act (FDCPA).
Save everything, including letters, court documents, phone call logs, and payment records. If the debt buyer used aggressive or misleading tactics, those records could help your case. Getting sued by a debt buyer is scary, but remeber, you’re not powerless. You have rights, and there are steps you can take to protect yourself. The key is to act quickly and seek help.
If a debt buyer is suing you, don’t wait. Contact our team to review your case and help you resist unfair collection practices. If a debt buyer is suing you in Maryland for $10,000 or more, contact the Holland Law Firm.
