Is debt collection a litigation?

Debt Collection Litigation Stages When a debt is contractually past due, you will generally have the option of proceeding to litigation or attempting to reach a settlement before taking that step. However, filing a debt collection lawsuit in no way limits your right or ability to negotiate a settlement with the debtor.

Where can I find an overview of debt collection litigation?

In this presentation we provide an overview on commercial debt collection litigation. Over 85% of our debt collections is under the name of our collection agency, and another 11% under the name of our in house law firm. Unfortunately, there are some situations where we cannot collect without going to court.

How does debt collection work without going to court?

The video and transcript below explain the debt collection litigation process. Our collection agency resolves over 97% of our successful cases without going to court. To learn more, see How We Work. When necessary, we do a full second collection effort under the name of our in house law firm at our same low contingency rates.

How much does it cost to get a judgement in a debt collection case?

On claims under $25,000, the amount awarded is typically between $400 and $700 rather than being based on the contingency fee rate. The larger the claim the more a judge is likely to award in attorney fees but there is no requirement that the entire contingency fee be awarded.

What are the functions of a debt collection letter?

Debt collection letter template – functions and samples. A debt collection letter template has two functions: it informs the debtor of the defaulted payment and warns him about eventual legal court actions.

What do you need to know about a debt collection lawsuit?

The Lawsuit Begins A debt collection lawsuit begins when the collection agency files a “complaint” (sometimes called a “petition”) in court. The complaint will explain why the collector is suing you and what it wants—usually, repayment of money you owe, plus interest, fees, and costs.

Can a debt collector use the word litigation?

The collection letter can only use the terms ‘litigation” or ‘legal action’ if the collector has actually authorized litigation. In other words, they cannot use those terms as a tactic to scare a person into paying a debt.

What happens if a debt collector violates the Fair Debt Collection Practices Act?

Debt collectors that violate the Fair Debt Collection Practices Act may be on the hook for more than your legal fees. Consult a lawyer about this step, but if the creditor has engaged in violations, you may be able to seek compensation for any related damages.

Where do I report a debt collector for an alleged violation?

Where do I report a debt collector for an alleged violation? Report any problems you have with a debt collector to: your state attorney general’s office; the Federal Trade Commission; the Consumer Financial Protection Bureau; Many states have their own debt collection laws that are different from the federal Fair Debt Collection Practices Act.