4 Things To Know About Debt Collections Defense

Staying on top of your finances can be a tricky process. Due to the inherently unpredictable nature of life, unforeseen circumstances may suddenly arise out of nowhere and throw your finances out of balance. If/when this happens, paying your monthly bills may become a challenge. Late payments often incur late fees and other penalty charges, which then makes them even more expensive - and thus even harder to pay off. All too quickly, your finances may spiral down into a vicious cycle that may be challenging to overcome. If you feel yourself getting sucked into this pattern, it is crucial that you contact a Missouri debt collections defense attorney immediately.

Being Pursued For Delinquent Debt

Unfortunately, creditors are often not very sympathetic to the situations you're facing that may have led to your inability to pay your bills. All creditors know is that they have not received the money owed to them, and often all they care about is taking steps to get that money.

Buying and selling debt is its own market these days. In fact, it's so common that the original creditor (such as a mortgage lender) may only have your account for a short while. It may have changed hands multiple times since the debt was originally incurred, so by the time you receive late payment notifications, you may be receiving these notifications from companies you've never even heard of.

Things To Know About Debt Collections Defense

In order to build a defense in the face of a debt collections lawsuit, it is important to educate yourself on the subject. Here are a few things everyone should know about the debt collections process.

1. Debt Creditors And Debt Collectors Are Not The Same Thing
Though these terms are sometimes used interchangeably by laypersons, debt creditors and debt collectors are two different entities. It is important to understand the distinction between them. A debt creditor is the entity from which you initially take on the debt. A debt collector is the entity that actively pursues delinquent debts to ensure they are repaid.

2. You Should Request Verification Of The Debt
If a debt collector pursues you for the debt, you should dispute the debt and request verification of it, in writing, within 30 days of the date you receive the initial written notice of the debt. Once you have properly disputed the debt and requested verification of it, debt collectors must provide you with this official documentation before they can continue to pursue you for it. At a minimum, debt verification usually constitutes a statement that includes a description of the amount owed and the name/address of the original creditor.

3. Debt Collectors Must Follow Specific Guidelines When Pursuing A Lawsuit
If you are being sued for a delinquent debt, we recommend consulting with an attorney to identify potential loopholes in the lawsuit. Debt collectors are required to follow very specific guidelines and procedures when suing for a delinquent debt. If these guidelines are not followed exactly, you may be able to get the case dismissed altogether.

4. Debt Collections Cases Are Governed By A Statute Of Limitations
The statute of limitations applies to debt collections lawsuits just like it applies to any other lawsuit; if action is not pursued until the statute has expired, the case may be dismissed. Some creditors may pursue court action even after an expired statute of limitations.  If this happens, it is important to raise this issue early on in the lawsuit.

Contact O'Donnell Law Center For Debt Collections Representation

Being pursued for a delinquent debt may be one of the most stressful experiences a person can face. It is important not to give up hope, however. Though things may seem bleak, you could have options and defenses that help you get out from underneath the crushing debt you are facing. Our Lake of the Ozarks debt collections attorney is here to help you get this behind you.

We Carry Your Burden ~ You Carry On With Life.

Disclaimer: No attorney-client relationship is created by the publication of this blog.

The choice of a lawyer is an important decision and should not be based solely on advertising.

Phone: (573) 552-0317

O'Donnell Law Center, LLC
1026 Palisades Blvd. Suite 3

Osage Beach, MO  65065


Popular posts from this blog

Estate Planning While Under Quarantine

Get To Know the O’Donnell Law Center Staff

Upcoming Events You Won’t Want to Miss