If you defaulted on a credit card or loan, you may be served with a lawsuit to collect the debt. However, sometimes these lawsuits are commenced against consumers because of a mistaken identity or identity theft. Even if you owe the money, these entities almost always try to collect interest and penalties that they are not entitled to.

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If you defaulted on a credit card or loan, you may be served with a lawsuit to collect the debt. However, sometimes these lawsuits are commenced against consumers because of a mistaken identity or identity theft. Even if you owe the money, these entities almost always try to collect interest and penalties that they are not entitled to. It is critical that consumers respond to these lawsuits to ensure that additional amounts are not obtained via a default judgment. Moreover, if it is a valid debt, it usually gives consumers an opportunity to negotiate a settlement for less than the full balance because of the expenses associated with litigation and the evidentiary difficulties faced by third-party debt collectors, who are the most common plaintiffs in these cases.

In a debt collection lawsuit, the entity that usually files the lawsuit is not the original creditor of the loan, but rather a third-party debt buyer who purchased the purported debt from the original creditor. Third-party debt collection companies typically do not possess the necessary documentation or subpoena the appropriate witnesses to prove that they are entitled to a judgment. The debt buying industry is predicated on obtaining default judgments or taking advantage of unrepresented consumers.

Whether it is the original creditor or a debt collector, our attorneys have successfully negotiated settlements or defended such lawsuits in courthouses throughout Virginia.