Collection agency pretend to be law firms?

Question

do collection agency's pretend to be law firms to scare you into paying them with the threat of legal action? how much do you think you would have to owe before they try to get a judgement against you?

Answer 1

Regarding law suits...

You might be able to sue someone in a state you don't live and get a judgment, but that judgment would be thrown out almost immediately.  You can't sue someone in a county where they don't live.  The law allows you to defend yourself.  If you live in Boston, and you are sued in LA for an old credit card debt, it doesn't make sense.  Proper service of the complaint is a requirement for a law suit.  And most states require that the suit be served in person, often by a process server or a member of the sheriff's office in the county where you live.  LA County Sheriff's office isn't going to go all the way to Boston to serve a law suit for a civil action.  If proper service is not done, that is grounds for a judgment to be overturned.  A collection agency would be stupid to sue you in a county where you don't live.  Also, it's a requirement of the FDCPA that you are sued where you live or, if a house is involved, where the house is located.

If a collection agency pretends to be a lawyer or a law firm, they are violating the law -- go and read the FDCPA - Fair Debt Collection Practices Act.

I was sued by a collection agency.  Before the case even went to court, the lawyer had racked up $1200 in fees.  In the end, they got nothing.  Most law suits are filed to scare people into paying something.  When that doesn't work, they will tend to take you to court because they assume you can't afford a lawyer.  With the lawyer who racked up $1200 in fees...once I started to fight back, they just gave up because they knew that in the end, it wasn't worth it.  In many states, legal fees are not automatically paid to the victor -- a judge must decide that.

Also, consider wage garnishment.  If it is allowed in your state (it is disallowed in NC, FL, TX and PA), then they are more likely to sue.  However, there are limits to garnishment, and certain types of money can't be garnished - like disability and Social Security.

Don't assume because the amount is small that you are free from being sued.  People are greedy by nature, and you just don't know.  If you are swimming that much in debt, you might want to consider bankruptcy, but everyone's situation is different.

Remember, judgments must be earned.  As long as you file your papers on time and go to court, there's always a chance to avoid a judgment.  Don't assume that you will automatically lose.  The burden of proof rests solely with the person/collection agency who sues you.

Good luck.

Answer 2

i had one send it to a lawyer for just 500 bucks.. and i was only a month behind.. the lawyer could not even understand why the turned it in..but they did..

Answer 3

I had a book club sent one on me for a $20 bill.  The deal is I had sent the book back and also had the return deal from the PO, as I knew they pull that stuff.  That's why I don't do book clubs, but have a great company now that send out cats every two months and they are new books for $4-6.  It's the greatest thing I ever found,  I got the web address and tons of new books.

Also lyou may try this I had a friend that told one guy that he used the "hat method". The guy asked what was that and my friend stated he took a hat and put all bills in it and would pull one bill out at a time and pay them that way, when he ran out of moola he stopped.  He threatedn  the collector and told him if he bothered hm one more time he would not even put their name n the hat.

As fara as getting ajudgement, unless it's local I wouldn't worry, what they will do is sell your account for pennies onthe dollar to another company and then the calls will start up again and so on.  Take care.

Answer 4

They sure do.  This is one of their notorious scare tactics.  Many collection agencies pay for the use of a lawfirms letterhead.

This practice is illegal as per the following:

15 U.S.C. § 1692e. False or misleading representations

(3) The false representation or implication that any individual is an attorney or that any communication is from an attorney.

(9) The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any State, or which creates a false impression as to its source, authorization, or approval.

(10) The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer.

Here is a web site to look up the more corrupt collection agency.  See if your collection agency is listed here.

http://www.budhibbs.com/drowning_in_debt...

Hope this answers your question

LEGAL DISCLAIMER:  The advice contained herein is for informational purposes only.  It is not to be construed as Legal Counsel nor Legal Advice.

Answer 5

It is illegal for a collection agency to pretend to be an attorney....They very well may have forwarded your account to an attorney tho...  

I work in this field and I can tell you that I will send almost any amount to a collection agency because I dont pay them unless they collect and they only get paid a small % of what they collect....When it comes to actually taking someone to court is when it starts to cost me a lil' more... I'd say suit fees are on average $250-$500 depending on how much is owed...so if you owe me $100.00 obviously it wouldnt make any sense to take you to court....  And as for the guy above who said unless it's "local" dont worry...Uh....I sue people in my own state/County...You'd need to come to my court room to defend yourself not the otherway around.

If you are getting collection calls at this level already your best bet is to talk to them and see what you can work out...if it does go to court you will be charged all sorts of fees and interest and if you dont show up to court with proof why you shouldnt have to pay then they will win a judgment -- -once they have a judgment they can cause you all sorts of problems... Garnishing wages, ruining credit reports, ruining job opportunities (Many companies wont hire you if you have a judgment) bank citations, and even dragging you into court and if you dont show they can have an arrest warrant issued...

Do yourself a favor and just deal with it.

Answer 6

Any phone contact by a collection agency should be made to submit all pertinent information to you in writing.  This should be your standard answer.   As little as 100, because the interest and court costs get added to your bill, it cost the company almost zero to get the judgement.