Who Is This Debt Collector Suing Me?

Are you being sued by a company you’ve never heard of like Portfolio Recovery, Midland Funding, Cach LLC, Cavalry Portfolio Services or LVNV Funding?

If so, chances are your debt was sold to a debt buyer. In fact, most people do not take the time to find out who is suing them. Or even respond to the lawsuit, because they do not think it is real.

Once a credit card has been unpaid for 120-160 days, many banks will charge off the debt and then sell the right to collect to debt buyers. Debt buyers purchase delinquent debts to collect money on the debts they purchased in bulk. These debt buyers purchase old charged off debts from banks for pennies on the dollar to sue for the entire amount owed. The company needs to provide proof that they have proper ownership of the debt to collect the full amount. 

So, is it legit?

The best way to tell if a lawsuit is legitimate, is if the lawsuit was served by a process server. If this is the case, there are real consequences at stake.

Many people ignore the summons and complaint thinking that the charged off debt is no longer collectible. If you receive a lawsuit from a process server it should be taken seriously. Ignoring the lawsuit can result in garnished wages or funds being removed from your bank accounts, property seizure, or liens placed against your property or you. The company is hoping you will ignore the summons and complaint.

In California, debt collectors are usually represented by lawyers even if the debt is not very large. The cases won’t be handled in a special court for small claims but in the regular civil court. This can be confusing and difficult for consumers who owe the debt because most of them don’t have a lawyer to help them so they usually don’t actively participate in the court process, and this benefits the creditors and their lawyers. Less than ten percent of consumers are actively involved in their cases in court. The debt collectors, on the other hand, file a large number of cases against individual consumers as part of their business strategy. Unfortunately, the court system seems to be more accessible to the debt collectors and their lawyers and this can lead to situations where judgments are made against consumers without them having a proper chance to defend themselves.

Our office has had many clients come in with lawsuits from debt buyers which resulted in garnished wages. Some of those debt buyers on top 30 list include:

  • Portfolio Recovery
  • Midland Funding 
  • Cach LLC
  • Cavalry Portfolio Services
  • LVNV Funding
  • Encore Capital Group
  • Unifund CCR LLC
  • Asset Acceptance Group
  • Equable Ascent Financial
  • GCFC Inc., A California Corporation
  • Jefferson Capital Systems
  • Crown Asset Management
  • Persolve LLC (Account Resolution Associates)
  • Velocity Investments
  • CMRE Financial Services

Many debt collection companies have a history of complaints and have been accused of aggressive tactics and Fair Debt Collection Practices Act (FDCPA) violations. But, they are legitimate third party debt collectors and are not a scam. Typically, they handle various consumer debts, such as retail, utilities, and insurance debts, to name a few.

In California, you must respond within thirty days of receiving the summons and complaint. However, the response time will vary based on the state in which you live.

So, once served, act quickly. If they win, you will end up with a judgment against you. But, you have options to avoid the judgment against you: fight it in court, settle your debt, or file for bankruptcy.

Fight it on your own

If you have already lost the lawsuit and received a judgment against you, you should have been provided with information on how to contest the garnishment. You have the option of filing a lawsuit on your own. This can be difficult without the legal guidance of a professional attorney.

File for bankruptcy

Do not be alarmed by the possibility of filing for bankruptcy. Bankruptcy offers you more protections than attempting to take care of your wage garnishment alone.

Once you file for bankruptcy, your attorney and the court will contact all the creditors listed in your bankruptcy paperwork to explain that you have filed for bankruptcy. The creditors must cease all communication with you and direct any inquiries to your attorney instead. If you have a pending foreclosure, wage garnishment, repossession, or eviction, this will be especially helpful.

If your wages have already been garnished or money was removed from your bank account, you still have options.

If you are being sued by a debt buyer like those listed above, call our office today for a free consultation.

Need More Information?

At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we would like to get to know you and we would like you to get to know us. We want you to be sure you are the right fit for us and that we are the perfect fit for you. This will allow you to be completely comfortable sharing intimate and difficult details of your case, so we can offer you representation to the fullest extent of the law. Call us today to set up a free consultation.