Who are Debt Buyers?
If you received a letter or lawsuit from someone you have never heard, you should not ignore it. There is a new business model where companies buy old debt and then try to collect it. These debt buyers pay pennies for the claims and then try to collect dollars from you. The debt buyers file lawsuits and hope that you ignore it because they will get a default judgment against you. Once they have a default judgment they can garnish your wages, your bank accounts and put liens on your home.
Some of the common debt buyers:
Asset Acceptance, LLC, Midland Funding, LLC, Portfolio Recovery Associates, LLC, CACH, LLC, Cavalry Portfolio Services, LLC, Hilco Receivables, Pasadena Receivables, LVNV Funding LLC. and others.
Some of their associated collection agencies include Midland Credit Management, Resurgent and others.
What you should do if you receive lawsuit filed by debt buyer?
DON’T IGNORE IT. You need to respond or they will get a judgment against you. You should contact an attorney. The attorneys who are part of the Law Zebra Network* have handled these types of cases for thousands of consumers. They can help you decide what to do to protect your rights.
What you should do if you get a letter from a debt buyer or a collection agency?
Do not immediately call them. You need to know your rights before you do. Many of the debt buyers buy debt that they can no longer sue on or may have been discharged by a bankruptcy case. BUT if you respond, you may create a problem for yourself. You need to talk to a lawyer knowledgeable in this area of the law.
Who do I contact?
You can contact Law Zebra to see if there is an attorney in the Law Zebra Network* in your state.