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HAVE YOU BEEN SUED BY A DEBT BUYER, NOT YOUR ORIGINAL CREDITOR? MAKE SURE THEY REALLY HAVE THE RIGHT TO COLLECT THE DEBT AGAINST YOU

 

In the context of debt collection and debt collection lawsuits, a “debt buyer,” sometimes also referred to as a “bottom feeder,”  can be a company, individual, or even a law firm who buys charged-off debt. Usually, these accounts are purchased by junk debt buyer for pennies on the dollar from the original lender who wrote off the debt as a loss and tax deduction. The debt buyer then turns around and attempts to collect on the full face value of the debt, including interest, late fees, penalties, etc.

Encore Capital (“Midland Funding”)  and  Portfolio Recovery are just a few of the largest debt buyers. They purchase large portfolios of charges-off debt, usually thousands of accounts from major banks and credit card issuers, such as Chase, Citi and Capital One. They systematically score these accounts on the probability of collection, whether or not the debtor has assets and file thousands of lawsuits every year against unknowing consumers to collect on these debts.

 

You need to know your rights. This industry is ruthless. They often try to collect against the wrong consumer and for the wrong amount. They often collect on time barred debt. Such actions are not only unlawful, but may also entitle you to compensation for actual damages, statutory damages, attorney fees, and costs.

 

Debt buyers take very little risk and profit off the misfortune of other. They often abuse the legal system and if you have been sued, you should immediately contact Doan Law Firm. We are here to protect your rights and aggressively defend against nefarious debt collection lawsuits.  We can get you the compensation you deserve for the unlawful harassment.

 

What you should know:

1.      Do not ignore a debt collection lawsuit!

90% of these nefarious debt collection lawsuits are won by default. Call Doan Law Firm for your free consultation to see if a counter-suit is available.

 

2.     Check the documentation of the debt buyer!

Most of the time,  they have none or very little. You need to confirm you owe the debt and the amount is correct.  Again, Doan Law Firm can counter-sue and recover damages if they are attempting to collect on a debt no longer permitted by law.

 

3.      Be leery of any settlement that is not documented in writing.

Before signing or paying anything to a debt buyer, make sure you know who you are paying and carefully read the terms of the settlement.  Again, Call Doan Law Firm for your free consultation before doing anything.

 

For more information on “bottom feeders,” please contact Doan Law Firm today.