Consumer Information
Beware Bad Debt Buyers!
Lately, a lot of people have been coming to my office who have been sued on defaulted credit card accounts. But these credit card accounts have been sold or assigned to other entities commonly referred to as bad debt buyers. The debt buyers will purchase a portfolio of credit card receivables for pennies on the dollar and then try to collect by filing lawsuits. Most of the debtors are too broke or scared to know that they have valuable rights. Furthermore, most of the debt buyers could not win their case in court if the debtors file an answer and otherwise defend themselves against these vultures.
I have been very successful in defending these claims. Usually, when I take these cases, the debtor pays the creditor nothing and oftentimes the creditor pays the attorney’s fees.
If you have been sued by an entity that you do not recognize seeking money, contact a lawyer. You can win these cases!
Additionally, as of October, 1, 2009, North Carolina led the nation and passed legislation that has effectively run these vultures out of our state. The requirements necessary to pursue one of these lawsuits has been greatly strengthened and the penalties increased so that it appears that debt buyers have written North Carolina off their list. If you get sued by an entity that you do not recognize saying that they own a credit card account, contact my office!
Case Example
The North Carolina Court of Appeals affirmed our judgment against a bad debt buyer. Our client was sued for approximately $4,000. Instead of our client owing the debt buyer anything, it owes the client $4,500 and almost $18,000.00 in attorney’s fees and costs! See here for a link to the opinion.
Case Example
A gentleman received a demand for payment from a bad debt buyer. He wrote to the bad debt buyer and informed them that he never had an account with that creditor and disputed the debt as allowed under the Fair Debt Collection Practices Act (FDCPA). Instead of verifying the debt, the debt buyer sued him. He hired a lawyer to defend the case and the debt buyer’s own paperwork confirmed that they had sued the wrong person.
We, along with co-counsel, then sued the debt buyer, the law firm and the lawyer for violations of the FDCPA. The case ultimately settled and the client was made whole and the federal court awarded attorney’s fees of over $50,000.
Case Example
Our client received a settlement demand from a collection agency whereby if the client would pay approximately half of the claimed balance, the creditor would note the account as paid in full. The client sent in the money. A few months later, he was sued by the same creditor (a bad debt buyer) for the alleged remaining balance. We counterclaimed and ultimately settled the account where the client got all of his money back and his attorney was paid in full.
Case Example
A client was sued by a debt buyer and he came to see us for bankruptcy information. In looking at his debt situation, bankruptcy was a good solution however we just could not let the debt buyer out so easy. We filed an answer and counterclaim and eventually settled the claim where the attorney’s fees were paid; the debt eliminated and the client got a check for his trouble.
Case Example
A debtor was sued by a debt buyer. She defended herself (admirably I might add) by filing a written answer denying the debt. She was then confronted with a Motion for Summary Judgment and she won–judgment was granted in her favor that there was no debt. Shortly after that, we got involved and sued the debt buyer alleging claims under the state law Prohibited Acts by Debt Collector and ultimately settled the case on very favorable terms.
Case Example
A lady received a summons and lawsuit from a bad debt buyer that was barred by the statute of limitations on its face. We counterclaimed alleging violations of the Fair Debt Collection Practices Act and settled the matter for almost $15,000.00 and the debt was reported as satisfied.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.