Understanding Debt Buyers In Pennsylvania
Perhaps you have heard the term “debt buyer” and are wondering what it refers to, exactly. Debt buyers purchase debts (often at pennies on the dollar) then attempt to collect the full amount of the debt.
Their main tool for collecting debt is the lawsuit: debt buyers in Pennsylvania file thousands of lawsuits each year. These companies are making huge profits off of your debt. If you have been contacted or sued by a debt buyer in Pennsylvania, here is what you need to know.
Why Do Debt Buyers Sue So Often?
It is important to understand why debt buyers file so many lawsuits in Pennsylvania. Surprisingly, one of the main reasons that debt buyers file so many suits is that they usually win by default.
This is because, unfortunately, most Pennsylvanians ignore debt-collection lawsuits. When you ignore a debt-collection lawsuit, the debt buyer wins what is called a “default judgment.”
This means that the debt collector has won the case without even going to trial. If you are being served a debt collection lawsuit, it pays to lawyer up. When you hire an attorney at Fenters Ward, all correspondence will be handled by your lawyer.
Hiring an attorney also dramatically increases your chance of winning the lawsuit. A recent study has shown that debt collectors were able to collect 62% of outstanding debt from parties without lawyers and only 21% of outstanding debt from parties who had retained legal representation.
Lawsuits Against Debt Buyers
Believe it or not, debt buyers in Pennsylvania have been served with many lawsuits themselves. This is because of the shady practices that they often employ.
Debt buyers are often sued because they file lawsuits without intending to prove any actual debt. Other lawsuits have claimed that debt buyers falsify documents and misrepresent information.
It has even been shown that debt buyers have attempted to file lawsuits on debts that are so old they cannot legally be collected. Law firms representing debt buyers in Pennsylvania have also been sued.
These attorneys frequently filed lawsuits on debts that were not verified and may not even have existed. These attorneys have also been accused of using deception and coercion to collect these unverified debts. When it comes to debt collectors, it is important to know who you are dealing with.
What To Do If You Are Sued By A Debt Buyer
If you are being sued by a debt buyer in Pennsylvania, there are a few initial steps that you should take:
- Respond To The Lawsuit
- Verify That The Lawsuit Is Valid
- Call An Attorney
If you are being sued by a debt buyer, the first thing that you should do is respond to the lawsuit. As we said before, most debt lawsuits are won by default. You should also make sure that the lawsuit is valid to begin with.
There is a good chance that the debt amount is inaccurate, that the debt is too old to be collected, or that it was never even your debt in the first place.
Call an Experienced Pennsylvania Debt Defense Attorney
If you’re being sued by a debt collector, call an experienced debt attorney at Fenters Ward to handle your case. We’re happy to help!