When Debt Collectors Sue You In Ohio: How To Respond To A Collection Lawsuit
It can be rather terrifying to learn from your creditor that they have initiated a lawsuit against you. Many times, Ohio residents receive their first knowledge of such a lawsuit by being served a court summons and complaint. While this kind of news can be alarming, you must know that there are several things you can do to help yourself legally in such a situation.
Understanding debt collection lawsuits
Debt collection action involves a situation where a creditor or collection agency sues the defendant before the court in an effort to compel them to pay off a purported debt. This may be the result of unpaid credit card debts, personal loans, hospital debts, or any other type of debt. In most cases, the original creditor sells the debt to a debt collector, who then initiates legal action.
When the suit is brought before the court, the plaintiff will serve the defendant with a summons and complaint. The complaint details the debt collection claim, while the summons warns the debtor of the consequences of failing to act within a specific time period.
The importance of responding
Failure to answer a suit that is brought against you is one of the most typical errors that people make when dealing with debt collections and creditors. In the State of Ohio, failure to file an answer within 28 days of having been served with a notice could result in a default judgment against you. A default judgment gives creditors permission to garnish your wages, levy your bank account, and place liens on your property.
Filing an answer will allow you to challenge the validity of the debt, even if you think that there might be some truth to the claim against you.
Common defenses in debt collection cases
Debt collectors must establish various facts before they can win a court case. There could also be situations where the collector does not have all the evidence required to prove that there was a debt in the first place. This happens because in many cases, the collectors buy the loans in bulk, which means they don’t have the initial agreement or account details related to them.
Another defense consumers can use is to allege that the amount stated is not correct; there could be incorrect fee charges and interest added. The statute of limitations limits the period after which the creditor cannot file a lawsuit against you.
Lastly, there is a possibility that there could be identity theft or mistakes by the debt collector, which could result in suing the wrong person.
Talk to a Columbus, OH, Debt Collection Lawyer Today
Being harassed by debt collectors? Kohl & Cook Law Firm, LLC, can help defend you from a creditor lawsuit. Call our Columbus consumer lawyers today to schedule an appointment, and we can begin discussing your options right away.
