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 receiveables 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 a 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 $4,000.00. Instead of our client
owing the debt buyer anything, it owes the client $4,500.00 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 Collections 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 $50,000.00.
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 Collections
Practices Act and settled the matter for almost $15,000.00 and the debt was reported as satisfied.
