Nobody likes being indebted, much less to a third-party debt collector. Now they’ve added insult to injury and sued you for nonpayment. If this has happened to you, please read on, then contact an experienced California debt collection defense lawyer to learn what you should know when you’ve been sued by a debt collector.
A Debt Collector Has Filed a Lawsuit Against You. Now What?
When you are served with a lawsuit in relation to an outstanding debt, it can be incredibly overwhelming. The idea of a lawsuit and potential time in court can be stressful, but taking the necessary steps immediately is critical to protect yourself.
One of the most important things to keep in mind after you are served is that deadlines can approach quickly. Typically, you will have 30 days in California to respond. If you do not respond within the 30-day window, the plaintiff may seek a default judgment.
As such, after being served, you should:
- Carefully read the summons and complaint to learn more about the outstanding debts
- Identify the deadline for when you must file a response
What Is a Default Judgment and Why Does It Matter?
There is a common misconception that ignoring a lawsuit will effectively halt the proceedings. However, this is far from the truth, as, if this were the case, anyone who has been sued could simply ignore the case.
It’s imperative to understand that, if you do not file a response to the lawsuit, the court can assume that the debt in question is valid and thus order a default judgment. Essentially, this allows the court to proceed without your participation in the suit. Unfortunately, many people lose their debt lawsuits because they did not respond, and thus, a default judgment was ordered against them.
A default judgment:
- Allows wage garnishments
- Allows bank levis
- Allows property liens
- Can negatively impact your credit and finances for years
Why Ignoring a Debt Collection Lawsuit Is So Dangerous
As mentioned, it’s necessary to respond to a lawsuit filed against you. Unfortunately, ignoring the suit won’t make it go away, and action can be taken against you even if you do not respond.
In general, courts will not take the step to verify the debt in question. This means a default judgment may be issued against you for a debt that you legally do not owe. These judgments can be difficult to undo, which is why responding on time is imperative.
Additionally, if you ignore a lawsuit for a debt, the interest and fees may continue to accumulate, meaning you can owe even more money in the end.
Unethical Practices Used by Some Debt Collectors
It’s not uncommon for debt collectors and third-party agencies to utilize unethical or manipulative practices when collecting on debts. Some of the most common actions include:
- Sewer service (false claims of serving you papers)
- Filing suits without complete or correct documentation
- Suing on debts that are time-barred or have already been paid
- Relying on consumers failing to respond to the suit
Your Rights As a Consumer
It’s important to understand that California consumers have a number of protections against unfair debt collection practices at both the state and federal levels. Not only does the Fair Debt Collection Practices Act (FDCPA) help protect against these unfair behaviors, but California has its own Rosenthal Fair Debt Collection Practices Act, which expands protections by including the original creditor as opposed to third-party agencies alone.
How Do You Defend Yourself Against a Debt Collection Lawsuit
At no point should you act impulsively, accept liability, give access to your bank account, or contact a third-party debt settlement service. First and foremost, you should immediately reach out to an Arroyo Grande consumer lawyer who can help you craft your response.
Steps You Can Take After Responding to the Lawsuit
After your initial response, you can take the following steps depending on the unique circumstances of your case:
- Challenge the collection agency’s right to sue you
- Demand proof of ownership and accuracy of the debt
- File a countersuit if your rights were violated
- Negotiate a fair debt settlement amount
- File for bankruptcy after discussion with an experienced attorney
Contact a California Consumer Attorney
If you are facing any sort of consumer-related issue, such as one involving identity theft, a credit report dispute, or you need a debt collection defense attorney to fight for you, our firm is ready to help. Contact Loker Law, APC today to schedule your initial consultation with our experienced legal team.
