Handling a debt collection lawsuit can be very stressful, but you don’t have to do it alone. An attorney can provide you with legal advice about your situation and guide you every step of the way until the matter is resolved.
When a debt collector sues you, the first thing to do is respond to the lawsuit. Even when you don’t believe you owe the debt. An attorney’s letter informing you of the debt collection lawsuit is not an official legal notice. The court sends the lawsuit summons, and it must be served in a manner directed by state laws.
Consumers are protected by the Fair Debt Collection Practices Act (FDCPA) that limits abusive, deceptive, and unfair debt collection practices. It is essential to know your rights are under the Act, especially when you receive a court summons.
There is a statute of limitations on collecting different types of debts, as defined in Florida’s Deceptive and Unfair Trade Practices Act (FDUTPA). The statute of limitations is five years for written contracts such as personal loans. If it exceeds five years, the debtor cannot collect or sue for the owed money. The statute of limitations for other debts such as credit card debts and oral contracts is four years.
But what should you do and not do when a debt collector sues you?
What to do if a debt collector sues you
As mentioned, the first action to take when a debt collector sues you is to respond. It could require a written response, showing up to court, or both. Do what is asked of you in the court papers and keep to the stated deadlines.
The second action is to look over your records about the debt and any information you received from the debt collector. It includes the validation information they must provide you, which is:
- How much money you owe
- The name of the creditor you owe it to
- How to get the name of the original creditor
- What to do if you don’t think it’s your debt.
The third action to take is to look for any issues with the lawsuit. It is the collection agency’s responsibility to prove the lawsuit claims as follows:
- That you are the person who owes the debt
- That the debt amount is accurate, including interest or fees
- That you owe the debt to them and not someone else.
If the debt is old, check if it falls within the statute of limitations outlined in Florida’s Deceptive and Unfair Trade Practices Act (FDUTPA). When you know you owe the debt, responding or showing up in court could sometimes result in a settlement, as some debt collectors prefer not to go through extended litigation.
What NOT to do when being sued by a debt collector
Never ignore the lawsuit summons when you are being sued by a debt collector. Even when the debt is outside the statute of limitations. If you fail to show up in court, the collection agency can win a default judgment against you, and the court will order you to pay the debt.
Subject to the state law and your situation, the judgment could allow the creditor to:
- Garnish your wages
- Place a lien against your property
- Move to garnish or freeze part or all funds in your bank account.
The judgment will be added to the public records section of your credit report. You may lose the ability to dispute your debt ownership, and the court might award additional fees such as collections costs, interest, and legal fees against you.
Shamis & Gentile, P.A. is a law firm based in Miami, Florida. We focus on mass torts, class actions, personal injury protection (PIP), personal injury, and TCPA spam text and voicemail violations. Do you need help with a debt collection lawsuit? Contact Shamis & Gentile, P.A. today.
