What If A Collection Agency Files A Lawsuit?

What if a collection agency files a lawsuit? Tips for action if a collection agency files a lawsuit. A collection agency cannot generally sue in its own name unless it actually owns the debt. If a consumer...

A collection agency cannot generally sue in its own name unless it actually owns the debt. If a consumer is sued, they need to obtain legal representation. The rules of evidence and rules of procedure are very complicated and a consumer could lose on what is commonly referred to by the public as a technicality but what a court might refer to as a rule of procedure or a rule of evidence even though the consumer might otherwise have prevailed. So, if the consumer is sued, generally the first thing that happens is that they're served and my recommendations will be at that point to retain an attorney.


A consumer has the right to communicate with an attorney that has sued the consumer about a debt and try to negotiate a settlement of that. The caution I would provide is that when a consumer is sued that consumer has a certain period of time within which to file a written answer to that lawsuit. That's generally applicable across the United States. The time period differs. I've seen it is as little as roughly 10 days after the consumer is served to as much as 20-27 days depending on how some factors come out. So a consumer does not want to call the attorney in attempt to negotiate a settlement and in doing so ignore the consumer's obligation to file a written answer for the lawsuit. Because if the consumer fails to file a written answer then a court could find that the consumer is liable by default for failing to answer. So as long the consumer preserves the rights and the litigation there's nothing wrong at all with contacting the attorney in attempting negotiate a settlement.


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