A new report just issued by District Council 37 Municipal Employees Legal Services provides significant information about what happens when debt buyers sue consumers for past-due debts. The findings are interesting, but I can’t say I’m shocked.
In a nutshell:
- Even when the debt buyer did respond to a demand for proof that the consumer owed the debt, its own documentation often proved the opposite.
- In many instances debt buyers sued consumers when they clearly had no legitimate claims. Debt buyers sued in cases of identity theft and mistaken identity, when their records did not reflect payments by the defendant, and when the debt was beyond the statute of limitations.
- In 27% of the cases surveyed, consumers only learned of the lawsuit after their salary was garnished or bank account restrained.
What’s the upshot here? Pretty simple, at least to me:
- Debt buyers sue people who don’t owe them any money
- Debt buyers don’t typically bother with “technicalities” such as proving that the debt is owed before rushing into court
- Debt buyers hope that the consumer will just roll over rather than fight the case
And the biggie …
If you fight back, chances are very good that you’ll win the case.
Want to read the report? Click here for the PDF.
Photo courtesy of L. Marie.
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