Spring Legal Group – Consumer Litigation
Creditors have many options when it comes to collecting debts. They can contact you via phone, email or postal service. If the debt is backed by property, they can take steps to repossess that property. However, if they cannot collect on that debt, there is one more option they might choose: litigation.
If a creditor has recently informed you that they are taking legal action against you, you should know that you are not alone. An estimated 30 million Americans are currently facing consumer litigation and other debt collection efforts. Spring Legal Group can help.
Dealing with Consumer Litigation
When a debt collector sues, you should receive an official court document called a summons. Each state has specific laws outlining how a summons must be served. The summons will explain your responsibilities and how you need to respond. You should not ignore a summons: The case will move forward with or without your participation. One of our experienced attorneys can ensure your rights are protected from the start.
Once we evaluate your case, we can work with you to decide on the most appropriate defense. There are several approaches we can take to defend against consumer litigation, including:
- Statute of litigations: Creditors must file within the Statute of Limitations. If they file beyond that period, they are violating the Fair Debt Collections Practices Act.
- Lack of Standing: Creditors must be able to demonstrate that you owe them money, including adequate documentation.
- Failure to Credit Payment: Every payment made to the account must be documented properly.
- Improper Service: The law dictates how creditors must serve complaints and summons. Failing to notify the debtors of consumer litigation and impending cases can result in an automatic default judgment. You can fight the judgment and apply to have it vacated.
- Lack of Standing: Creditors must have documentation demonstrating that you owe the money.
- Failure to Credit Payment: Creditors must properly credit accounts for every payment made.
Consumer Litigation: Other Options
If you do not have a defense against litigation, you can also acknowledge the debt. The judge will issue a summary judgment, and you will be able to repay the debt. You may also be able to settle the debt. Settling is often in your best interests, but it can also be in the creditor’s best interests. If you choose to settle, our attorney will work to negotiate the best terms possible to meet your needs.
Creditors can litigate over virtually any type of consumer debt, including medical bills, credit card debts, personal loans and auto loans. If you are facing consumer litigation, you are not alone. Spring Legal Group can help. We will explain your options and work towards the best outcome for your situation. Call us today for a free case evaluation.