When Debt Buyers Sue: Defending Against Purchased Debt Lawsuits In Ohio

Today, debt lawsuits are more likely to be brought by debt buyers than original creditors. This is because debt buyers purchase debts at very reduced prices, sometimes at a fraction of their face value, and then seek to collect the full amount owed through any available means. The process is prevalent in Ohio, where debt buyers bring many lawsuits that catch people off guard. It is therefore important to know how such lawsuits are brought about and how you can fight them.

Understanding the issue 

Debt buyers purchase charged-off accounts from the original creditor, like credit card companies, banks, or other lending institutions. These charged-off accounts are purchased in bulk without much documentation. After acquiring such accounts, the debt buyers try to recover their money by sending demands or instituting legal action via the Ohio courts.

Since there has been a considerable period of time since the occurrence of the debt, it is likely that the defendant has forgotten about it and believes that the problem is long gone. In some cases, the statute of limitations may have expired on the debt.

Legal issues with purchased debt 

Standing is a major issue in debt buyer lawsuits. The plaintiff will need to establish that they own the particular debt, meaning they must prove their ownership of the loan. To do that, a chain of title needs to be proven. Usually, this cannot be done since there may be no documents showing the transfer of the debt and its ownership.

Statute of limitations is another question to consider when dealing with a creditor lawsuit. According to Ohio law, most debts resulting from a contract must have a lawsuit filed within 6 years after default. However, proving the date of the default and checking whether this period is still valid is a difficult task.

Furthermore, debt buyers often struggle to prove the debt since they need to provide the actual agreement and show proof of all payments made on it. However, most plaintiffs only have an account summary or a general statement, which courts might not accept as evidence.

It is also worth noting that consumers may be entitled to file countersuits, especially if any federal laws were violated. Thus, for instance, the violation of the Fair Debt Collection Practices Act (FDCPA) could be considered a basis for filing a lawsuit.

Key takeaways 

The fact that a debt buyer has filed a lawsuit against you does not necessarily mean that you have to pay the debt or that the creditor will automatically win. There are various possible defenses offered under Ohio law that include the absence of standing, poor documentation, or an expired statute of limitations.

It goes without saying that the most critical thing for you to do at this point is respond to the suit. Failure to act can result in a default judgment against you, which would enable the debt buyer to garnish your wages, bank account, or place a lien on your property. Early response gives you a chance in the fight.

Talk to a Dayton, OH, Consumer Debt Attorney Today 

Kohl & Cook Law Firm, LLC, represents the interests of Dayton residents who are facing creditor lawsuits. Call our Dayton consumer lawyers today to schedule an appointment, and we can begin defending your case right away.