- Credit Card Debt
- Note Loan
- Repossession Deficiency
- Student Loan Debt
- Insurance Subrogation
- Lease (Commercial or Residential)
- Medical Debt
- Insurance Premium
- Contractor/Supplier Debts
Debt Collection Lawsuits
Are you in financial trouble? Battling consumer debt collection phone calls on a daily basis? Considering bankruptcy but don’t know where to start?
If you answered “yes” to any of these questions, contact Daic Law today.
Everyone finds themselves in a financial “tight spot” from time to time. With mounting costs of healthcare, limitations to insurance and an inconsistent economy, millions of Americans have suffered from financial devastation.
First, you should know that you are not alone. Second, you should know that there are ways to relieve your debt burden and defend your rights if a debt collection lawsuit has been filed against you.
Debt Collection Lawsuit Defense
At Daic Law, we offer debt lawsuit defense in Justice of the Peace, County, and District Courts. We help clients resolve the following debt collection actions:
- Lawsuits from a debt buyer (collection agencies or a debt collector)
- Lawsuits from original creditors (banks, etc.)
- Lawsuits related to credit cards, leases, automobile deficiencies, or contracts
- Default judgments
- Garnishment actions on wages or bank accounts
Sadly, many people believe that there is no hope or defense against debt collection practices. They believe their situation is hopeless and that their reputation and credit report are simply ruined. That is simply untrue. Consumers have legal rights, even if they owe a debt or find themselves the defendant in a lawsuit.
Find more information about Debt Collection Lawsuits here. At Daic Law, we help clients in Houston, Dallas, San Antonio, and throughout Texas.
Debt Collection Lawsuit FAQs
What type of debts do you help with?
At Daic Law, we represent individuals for a variety of different debts, including the following:
- Credit Card Debt
- Note Loan
- Repossession Deficiency
- Insurance Subrogation
- Insurance Premium
- Student Loan Debt
- Medical Debt
- Contractor/Supplier
What are defenses against Debt Collection Lawsuits?
By mounting a defense against a debt collection lawsuit, you are telling the court that there are reasons why the plaintiff (the person or entity filing the lawsuit) should not win. There are several defenses to debt collection lawsuits, including:
- The plaintiff did not prove their claims
- You do not owe the money
- The debt is the result of stolen or mistaken identity
- The creditor filed a lawsuit after the statute of limitations expired
- You are being sued even though you were only an authorized user on a credit card
- You were a cosigner but received no notice
- You paid some or all of the debt but have not received credit to your account
- You believe the amount of the debt is incorrect
- You do not have a business relationship with the plaintiff who is a debt buyer and not the original creditor
- Your debt was relieved through bankruptcy
- An auto dealer did not make accurate disclosures
- Improper service due to the plaintiff not serving a Summons or Complaint, or serving the Summons or Complaint at a date where you could not file an Answer
These are some of the common defenses used to protect consumers in debt collection lawsuits. There may be other defenses available to you depending on the details of your case.
What are NOT defenses to a debt collection lawsuit?
In an effort to defend themselves against creditors, consumers often make a case for why they did not, or cannot, pay the debt. Commonly, consumers will argue:
- The reasons why the debt was not paid
- The reasons why the debt cannot be paid now
- Failed attempts at negotiating a reasonable payment arrangement
- A statement requesting to make payments or settle the case
These are all legitimate elements of your case, but they are not legal defenses to debt collection suits. These are elements that are important in establishing your claim and working to resolve the debt, but they are primarily used as tools for your attorney to understand and build your case.
I have been sued by a creditor. What do I do now?
If you have been sued by a creditor or collection agency, it is important that you respond to the lawsuit as soon as possible. You have a limited amount of time to respond to the lawsuit before the creditor can obtain a “Default Judgment” against you.
The response that needs to be filed with the court is known as an “Answer”. If you need legal advice before filing an Answer, contact Daic Law.
What is a "Default Judgment"?
If you do not respond to a lawsuit, then the Plaintiff (or creditor) can obtain a default judgment against you. This means that you failed to respond to the lawsuit (or the Plaintiff’s “Petition”) and, as such, the Plaintiff can automatically “win” and obtain a judgment against you.
With the judgment, the Plaintiff can try and garnish (i.e., “freeze and take”) your bank account(s), sell your non-exempt assets to satisfy the judgment, or possibly file a lien against your home.
If you have been sued by a creditor, the first step is to file an Answer or response to the Plaintiff’s lawsuit.
Once you have responded to the lawsuit, it may be necessary to engage in “discovery”. This means asking questions and requesting documents, as well as providing responses and documents to the other side (as necessary).
It might become necessary to draft and file OR respond to the other side’s motions. This can include a Motion for Summary Judgment, Plea to the Jurisdiction, Motion to Conduct Discovery, or any number of other motions that become necessary to file in your case. Daic Law can assist you with this!
If you are unable to resolve the matter without the need for trial, then it is important that you have an experienced debt collection lawsuit attorney who can help you prepare for trial and advocate on your behalf.
Debt Lawsuits and Abusive Debt Collection
If you have unpaid debt in collections or a lawsuit has been filed against you, you may find that collection agencies amp up their efforts. Often, the way that debt collection agencies contact you and demand payment are abusive and illegal.
Daic Law can help you if you are a victim of abusive debt collection practices. Contact us if you experience a debt collector who:
- Threatens you with violence
- Uses abusive or profane language
- Contacts you repeatedly to annoy you
- Contacts family members or friends
- Claims that you owe more than you really do
- Adds on unauthorized fees to your account
- Threatens you with a lawsuit, lien, garnishment or arrest
- Contacts you without disclosing that they are a debt collector
- Continues to contact you after you file a written stop notice
The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers from creditors who will use these abusive tactics to collect a debt. Under the FDCPA, debt collectors cannot:
- Call you before 8:00 a.m. or after 9:00 p.m.
- Call your workplace after you ask them to stop
- Leave anonymous voicemails
- Disclose your information to an unauthorized party
- Communicate with you after you have requested that they stop
- Misrepresent your debt or ask you to pay more than what you owe
- Use vulgar, obscene or insulting language
- Threaten you with violence
- Threaten you with arrest
If you are the victim of any of the illegal practices, contact Daic Law to get legal help on your side. You may be eligible to fight against debt collectors and resolve your debt in a way that is fair to you. If your rights have been violated by illegal practices, you may also be eligible for compensation. Don’t waste time learning more about consumer protection laws.
Protecting Consumers Throughout Texas
Daic Law founder, Megan Daic, is passionate about protecting the rights of consumers in Texas. Whether you are the victim of abusive debt collection practices, have questions about bankruptcy, have a business litigation issue, or have been injured due to someone else’s negligence, Daic Law can help. Find out how our consumer advocates can help you by contacting us at (877) 893-6040, or by emailing us at info@daiclaw.com.