What do you do now that a lawsuit has been filed against you by a collection agency.
The obvious correct choice is contacting an attorney right away. This is an important aspect when a collection agency is involved because a collection agency lawsuit is a different type of lawsuit. The collection agency has either been hired by the original creditor or has purchased the right to collect the debt from the original creditor. That makes a little more work for the collection agency and may provide you with a defense.
A review of the lawsuit is the first thing you need to do. Ask yourself 3 questions. 1. Is the Debt is legitimate? 2. Does the collection agency have the legal right to attempt to collect it from you? 3. Does the lawsuit meet all necessary legal requirements to proceed?
Looking at these questions individually, let’s start with “Is the Debt legitimate?” Did you ever have this type of loan or credit card. If a collection agency is involved, the Debt may have been incurred years ago, and may be difficult for you to remember. Time is an important factor here, because all states have Statutes of Limitation that define when a lawsuit must be filed. In many states the Statute of Limitation to collect on a debt. You can find out what the statute of limitations is in your state by clicking here.
The second question is whether the collection agency has the legal right to attempt to collect from you. Is there evidence that the collection agency has authority to proceed. This might be indicated by a purchase agreement or an assignment from the original creditor. Many collection agencies fail to attach this document to their lawsuit. In that instance,you should place an objection to the suit to make the collection agency prove that the have the legal right to proceed. If they cannot, move to have the lawsuit dismissed.
The third question is whether the lawsuit meets all of the necessary legal requirements to proceed. Again, collection agencies often fail to properly articulate the claims against the debtor, either by means of failing to provide enough information or failing to provide the proper documentation.
If you are sued by a collection agency and can answer NO to any of the three questions posed above, you likely have a valid defense to the lawsuit.