How to Fight a Collection Agency That Has Loan Documents
While it is easier to deal with a collection agency that does not have loan documents, the fight is not necessarily over if they do have them. Your first line of defense is determining if the documents and debt are valid. Even if they are, and you do owe the debt, you can still fight back against abusive debt collection practices. You can't stop a collection agency from suing you over a legitimate debt, but you can make it treat you respectfully.
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Instructions
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Request validation of the debt. The collection agency will send you a copy of the loan documents. Do not acknowledge that you owe the debt or make any payments until the validation process is complete.
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Look up the debt statute of limitations in your home state. This is the amount of time a debt is valid for. If the debt is not collected within this time frame, the collection agency may no longer make collection attempts. The clock for the statute of limitation starts from the last time you made a payment, or in some states acknowledged that you owe the debt.
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Check that the loan documents are accurate and valid. Verify that the debt is still within the statute of limitations and valid for collection.
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Hire a lawyer. If the debt is not valid, your lawyer will help to stop collection activities. If the debt is valid having a lawyer will force the collection agency to route all communication through him, instead of contacting you personally.
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Know your rights under the Fair Debt Collection Practices Act (FDCPA) and enforce them. Debt collection agencies may never contact you before 8 a.m., after 9 p.m. or at work without your permission. They may not use verbal abuse, threaten you with violence or use deceptive tactics, such as sending letters disguised as court documents. If the collection agency uses any of these tactics, file a complaint with the Federal Trade Commission. Your lawyer can help you identify violations of the FDCPA and report them.
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Develop a plan to repay your debt, if it is valid. If you owe the debt your are responsible for paying it and if you do not do so, the debt collector has the right to sue you. A lawsuit may result in garnishment of your wages, seizure of some assets to pay your debt or a lien being placed against your property. Your lawyer may be able to help you negotiate a fair and feasible repayment plan.
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Tips & Warnings
The FDCPA exists to protect you from abusive debt collection practices, but won't get you out of debts you legitimately owe.
