Sued by a Debt Collector? Here's Some Things You Should Know

Debt Collection Lawsuits and Robo-Signing

Robo-signing is becoming a more familiar term to Brooklynites every day. Sadly, Central Brooklyn seems like ground zero for debt colletion activities that rely in part on robo-signing. Typically used to describe shady foreclosure practices, robo-signing is loosely defined as:

“the practice of a bank employee signing thousands of documents and affidavits without verifying the information contained in the document or affidavit.”

This means that when the bank sues you to foreclose on your property, if they engage in rob-signing, they are submitting fake or fraudulent documents in order to prove their case. As you can imagine, this practice is 100% illegal.

But many of the people who call Daniel Favors Law when they are sued by debt collectors don’t realize that robo-signing is not just used in foreclosures. Robo-signing practices are also heavily used in credit card lawsuits. In fact, in nearly every case where we defend New Yorkers being sued by debt collectors – the Daniel Favors Law team has successfully shown that the debt collectors don’t have the proper documents to win their case in court. This means our clients win.

In today’s New York Times there is an article that describes the rampant robo-signing that takes place in debt collection lawsuits. According to Judge Noach Dear (who hears nearly 100 credit card lawsuits every day in Brooklyn),

“I would say that roughly 90 percent of the credit card lawsuits are flawed and can’t prove the person owes the debt.”

Did you catch that? In nearly 90% of the debt collection cases filed in New York, the debt collector can’t prove that the person they sued owes the debt. But if this is the case – why are so many people loosing these lawsuits every single day?

Why Do Most Brooklynites Loose Debt Collection Lawsuits?

Well one reason is default judgments. This can happen when person being sued does not know they have a court date because they did not receive the proper notification.  This process is referred to as "Sewer Service" and you can read my thoughts on the practice here.

In this case, when you don’t appear in court the debt collector wins the lawsuit automatically – aka by default. After the default judgment is entered, the debt collectors can garnish your pay and freeze your bank accounts. Many Daniel Favors Law clients call for help related to default judgments. The good news is that depending on a few factors, in many cases you can ask the court to throw out the judgment. But you have to act quickly in order to protect your rights.

But one of the biggest reasons people loose these cases is because they represent themselves in court. In fact less than 10% of the New Yorkers who are sued in debt collection lawsuits have an attorney. Compare that to the fact that nearly 100% of the debt collectors always have an attorney to protect them.

Sadly, many loose these cases by the tens of thousands simply because they just don’t know how to represent themselves in court. A lot of people mistakenly believe that just being “right” is all that matters.

Unfortunately, being “right” is simply not enough.

Like I told one family member who wanted to represent herself in credit card court – there are a lot of innocent people serving time in jail right now.  Simply being innocent may not be enough. Not owing the debt may not be enough. Knowing that you paid off some portion of the debt may not be enough.

You also have to know how to prove your case according to the rules in the court you are being sued in. You need to know the rules of evidence and why the documents submitted in your case may be problematic. This is why it is imperative that you speak with an attorney in order to protect yourself.

Worried about the price of hiring a lawyer? Well, consumer rights law firms like Daniel Favors Law have affordable prices and payment plans. Since my firm is commited to economic justice and civil rights, one of my top priorities is to bring affordable legal services to people who don’t usually have access to a lawyer.

Making Sure You Win

Here’s what you can look forward to when you hire Daniel Favors Law to defend your debt collection lawsuit.

1. A thorough review of your case file and examination of the documents that the debt collector filed with the court. The key to winning is usually in the documents – and I love going through debt collection documents with a fine-toothed comb. I pride myself on being detail oriented and “going to the mat” for my clients.
2. Strong, aggressive, pro-active representation that forces the debt collector to play by the rules. If they submit fake or insufficient documents – you can be confident that we will spot the issues and make the debt collectors answer for it in court.
3. A true “working-relationship” with your attorney.  I know how hard it can be to ask for help. Especially when the “helper” is rude, brushes you off or doesn’t listen to your concerns and goals. I have had the unpleasant experience of hiring a "hands off" attorney in the past - and I would not wish that experience on anyone who is looking for help.

When you are dealing with overly aggressive debt collectors - your rights AND your emotions may be involved. Call me old fashioned, but I believe in “hand-holding” when it comes to my clients. This is why I refuse take every case that comes in the door. I am committed to my clients legal and (to the extent possible) emotional well-being. So I need to be sure that our working relationship will be a positive one before I take on a new client.

I know that the law is scary and that court can be down right intimidating. My job is not just to defend your rights – but to also serve as your counselor. Someone who will be there with you every step of the way.

I am proud to say that my clients frequently thank me with bear hugs, tears and some of the best "thank you" meals ever concocted in a kitchen. (My mother is Jamaican which means I’m partial to Caribbean food in case you were wondering.)

Debt collection lawsuits are not a game.

Every day, Bed-Stuy residents unnecessarily turn over tens of thousands of dollars to debt collectors who can't prove a real case in court.

Every day Bed-Stuy residents unnecessarily loose these lawsuits because they go into court without the proper protection.

If you are facing a debt collection lawsuit – you must act quickly. Depending on the facts of your case – you have between 20 and 30 days to file an answer. Otherwise the debt collector may win the case by default. If you need help you can either set up an appointment on line or call our office at 347.670.DEBT (3328).

At Daniel Favors Law – our clients’ peace of mind comes first. The best compliment we received was when a happy client reported that she could finally go to sleep at night without worrying about money or debt collectors for the first time in years.

That’s how we define success.

photo credit: Phil Roeder