How to Measure Your Risk of Being Sued by a Collection Agency

When a collection agency is in possession of your debt, the possibility of a lawsuit against you always exists. However, you do not have to operate in fear and anxiety, cringing during your trips to the mailbox. If you educate yourself on a few realities and take some simple actions, you will have a much better idea where you stand and perhaps avoid a lawsuit.

Instructions

1

Check the statute of limitations on debt for your state. If your debt is still within the statute, you have a higher chance of being sued because the agency wants to collect before the statute expires. Collection agencies do occasionally attempt to sue for debts beyond the statute because debtors typically do not contest. If they did, the suits would be dismissed.

2

Verify the amount of the debt. The higher the amount the collection agency claims you owe, the higher your chances it will sue.

3

Send a dispute and validation letter. Under the Fair Debt Collection Practices Act, you have the right to send a letter, asking the collection agency to validate that the debt is indeed yours.This will automatically red flag you as an aware consumer; thus, the collection agency will be less likely to file suit for an out-of-statute debt, especially if it fails to respond to your letter. Most do not.

4

Allow the collection agency some method of contacting you. If you have sent a full cease-and-desist letter forbidding all forms of contact with you, then you are much more likely to be sued because the collection agency now has no method of contacting you to attempt to collect the debt.

5

Watch your correspondence. If the collection agency has begun to send correspondence via an attorney, you are at greater risk of being sued.