Debt buyers frequently sue using only a recent billing statement as proof. However, a statement only shows a final balance, while courts require the original signed contract to prove the actual legal terms and your consent to them. Debt buyers purchase accounts in bulk portfolios. They receive basic data on spreadsheets, not original signed contracts. … Read more
Most major credit card agreements contain an arbitration clause that forces disputes out of a public courtroom and into a private arbitration forum. Debt buyers often drop lawsuits when forced into arbitration because the private filing fees (often $2,000 to $4,000) completely erase their potential profit. Filing a Motion to Compel Arbitration must be done … Read more
A bankruptcy discharge is a permanent federal court injunction that prohibits any collector from filing a lawsuit to collect the discharged debt. Debt buyers often file lawsuits on discharged accounts because the bankruptcy status was lost or stripped out of the data when the debt portfolio was sold. To use your bankruptcy discharge as a … Read more
Filing an FDCPA counterclaim allows you to sue the debt collector back within the same lawsuit they filed against you. If the collector violated federal law during the collection process, you can demand actual damages, up to $1,000 in statutory damages, and attorney fees. A counterclaim drastically shifts the settlement leverage, as the collector now … Read more
If you are sued for a debt that does not belong to you, the plaintiff bears the absolute burden of proving that you are the person who incurred the debt. Debt buyers frequently sue the wrong person due to automated skip-tracing errors, mismatched names, and incomplete data purchased in bulk portfolios. Mistaken identity and identity … Read more
The statute of limitations (SOL) is an absolute defense that can get a debt lawsuit dismissed, but courts will not apply it automatically. You must actively raise it. If you file an Answer without formally listing the SOL as an affirmative defense, you waive the right to use it. The court will let the collector … Read more
The paper trail is mandatory: A debt buyer must prove they legally own your specific account through an unbroken chain of documents from the original creditor to them. Generic documents are not enough: A bill of sale that mentions a “portfolio of accounts” is insufficient unless it includes an attachment that specifically lists your name … Read more