What Do I Need to Know About Junk Debt Buyers?

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When you accrue debt, you are likely facing enough stress without thinking about what happens when sued for this debt. However, if the creditor serving you a lawsuit is not the original lender, they could be a debt junk buyer. In this instance, you may have to follow a different procedure. Keep reading to learn more about junk debt buyers and how a Los Angeles, California debt defense lawyer can help you navigate this lawsuit.

What Are Junk Debt Buyers?

When creditors are inundated with debts that have gone uncollected, were the result of identity theft, or were filed improperly, they will often sell this debt. This is where junk debt buyers come in, as hundreds of companies will purchase debt in bulk for pennies to attempt to collect the full amount from the debtor.

Because these companies are paying a minuscule amount of money for the debts they are purchasing, they will do everything in their power to receive money from a debtor. For example, they will use threatening and abusive tactics to pay a small portion of the debt, which reaffirms it. This means the statute of limitations will be renewed. Similarly, they will often change the date on debt to make it appear as though the debt is more recent than it is.

What Are My Legal Options?

If you are sued by a junk debt collector, understanding your rights as a consumer is essential. It is vital to note that these companies are recognized under the Fair Debt Collections Practices Act and protected as collection agencies.

However, because they are legally recognized does not mean the debt they are trying to collect or their methods of collection are legitimate. In most circumstances, you will have options that can help get the claim dismissed.

For example, if your debt has expired due to the statute of limitations, which in California is generally four years, the collector is no longer allowed to pursue the debt. However, you must check the terms of your agreement, as there are stipulations that lengthen the statute. Also, you are permitted to request proof that the company filing the lawsuit against you owns the debt and that you are the correct debtor. Because these companies purchase thousands of unclaimed debts at a time, it can be challenging to locate this information.

However, the most important thing to do when faced with a debt lawsuit is to contact an experienced attorney immediately. Unfortunately, debt collection lawsuits can disrupt your daily life and cause additional stress and anxiety. If served papers, you must contact an attorney as soon as possible for the best defense options.

At LA Legal Solutions, our dedicated legal team understands how challenging these cases can be to navigate. That’s why we’re ready to help. Our experienced firm will help you through this process, so you can rest assured knowing your case is in good hands. Contact us today to learn more about how we can help you.

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