U.S. consumers are almost $19 billion in debt because of credit cards, and banks are suing delinquent borrowers with greater frequency. These people often do not appear to contest the allegations, but that can be a costly mistake. In many cases, court documents submitted by creditors can include errors. Clients can click here to find out how a lawyer can provide debt help in Topeka, KS, and help stop creditor harassment.
Inaction has Consequences
When a person fails to appear in court to contest a creditor’s charges, the creditor wins by default and can freeze the debtor’s bank account or garnish their wages.
Mistakes are Common
In many cases, banks and lenders sell bad loans to collection agencies. These buyers should get the documents that accompanied the original loan, but this isn’t always the case. Therefore, lenders are filing lawsuits based on false documentation, poor record-keeping, and shoddy witness testimony. In certain cases, the consumer owes nothing and, in others, the debt amount can be inflated.
Instructions on Responding to a Creditor’s Allegations
If a person thinks they are being sued for a bad debt, there are certain steps to take. The debtor should demand to see proof that they owe the debt. Under the FDCPA, collection agencies must furnish this proof. Debtors should carefully read these documents to verify that personal information is correct.
If the debt is in another person’s name, any reply should be in writing and copies should be made. A written, formal response to a collector’s claims should always be filed in court; failure to do so can be construed as the client’s admission of the debt. If errors are found, the person should call the consumer complaints division of their local AG’s office, and they should also hire an attorney.
Consumer Lawyers Can Offer Debt Help
State laws on credit card debts are complex and all cases present unique challenges. The information provided here is intended to serve as a general, easy-to-understand introduction to the idea of debt help in Topeka, KS. If a person needs specific, detailed information on their case, they should call a consumer attorney as soon as possible. By hiring an attorney, the debtor can stop collection agencies from pursuing illegal debts.