Lawsuit Features

• A lawsuit is an official complaint between two parties in a court of law. Bill collectors can file a lawsuit against a consumer that is behind in loan payments. The lawsuit gives the bill collector the power to possibly obtain money from the consumer through a judgment. A court judgment typically includes garnishment. The court allows the bill collector to withdraw money from the consumer's bank account or paycheck on a schedule that is agreed upon during court proceedings.
  
  

Debt Collection Basics

• Lawsuits do not occur automatically when a consumer is behind on a debt. Bill collectors must observe the Fair Debt Collection Practices Act (FDCPA). The consumer may first receive phone calls or letters stating the amount owed in an attempt to obtain payment. A bill collector cannot harass or threaten a consumer over a debt. A bill collector who runs afoul of FDCPA rules can be investigated by the Federal Trade Commission (FTC) for unfair practices.
  
  

Hiring A Lawyer

• A consumer overwhelmed with debt can hire a lawyer. The bill collector must do business through the lawyer. Hiring a lawyer takes stress off the consumer by tasking the legal professional to protect his rights. The lawyer can respond to a pending lawsuit, possibly negotiating a fair payback schedule without the need for a judgment or garnishment.
  
  

Ignoring A Lawsuit

• Some consumers are frightened by a pending lawsuit and ignore the process altogether. However, ignoring a lawsuit gives a bill collector more influence over the proceedings in court. A judge can possibly view the consumer as delinquent, implementing a judgment for garnishment without the consumer present. Consumers should always respond to bill collectors.
  
  

Suing The Bill Collector

• A bill collector that violates FDCPA regulations can be sued by the consumer for unfair practices. However, the consumer's debt must still be paid.