When you fall behind on a payment, it’s critical to understand the legal implications that can arise from this. While it may not seem like a big deal, the creditor is allowed to take action to secure the funds they are owed. In many instances, this involves sending a debt to collections. Many may be shocked to learn that their gym has sent their debts to collections, leading those with outstanding funds to be curious about their legal options. If this represents your circumstances, you’ll want to keep reading to learn more about your options and how a Los Angeles, California debt defense lawyer can assist you in these matters.
What Does It Mean to Be Sent to Collections?
When you are contacted by a debt collector, it can be overwhelming and confusing. However, it’s important to understand that this means you have been sent to collections. Essentially, when you owe a debt to an original creditor and fall behind on the payments for an extended period of time. In general, this is typically a 120-day window from the date of the last payment to when the creditor sends you to collections.
If you have been sent to collections, it’s imperative to understand that the original creditor no longer owes the debt you owe. It has been sold to the collection agency, likely for pennies on the dollar of the outstanding amount. As such, the collection agency will pursue you for the compensation they are owed for the debt they own.
What Are My Legal Options if a Gym Sends Me to Collections?
First and foremost, it’s imperative to determine whether or not the debt is valid. As such, you should request a debt validation notice from the collector. This will inform you of the original creditor, as well as the current outstanding balance. You should then check your records to ensure the information matches.
If the debt is valid, meaning you do owe the funds, you should connect with an experienced attorney who can help you negotiate a debt settlement with the collection agency. Essentially, this means you would be able to reach an agreement on a payment, often less than the actual debt you owe, in exchange for a lump-sum payment.
If you discover that the debt is not valid, meaning you do not owe it, your attorney can help you dispute the debt. This means you can contact the collector and provide evidence to prove that you have no legal obligation to repay the funds.
Unfortunately, some gyms, including many commercial franchises, will attempt to continue billing you even after you’ve canceled your membership. As such, one of the most important things you can do is obtain confirmation that your membership has been terminated, whether it be a typed document or an email from gym management.
As you can see, fighting to have a debt in your name cleared can be incredibly difficult. It is in your best interest to connect with an experienced attorney with LA Legal Solutions to help you fight for the best possible outcome. Our team understands how complex these matters can be, which is why we will do everything in our power to help you recover the compensation you deserve. Connect with us today to learn more.
