Don’t put off until tomorrow what you can do today. Perhaps nothing else is more appropriate for this phrase than responding to a debt collection agency lawsuit in a prompt manner.
According to consumer protection law, a third party debt collector must properly serve a lawsuit. However, you cannot refuse to accept delivery of the lawsuit and you certainly should not ignore the summons to appear in court.
If Consumer Portfolio Services, Inc. has served you with a lawsuit, you must act with a sense of urgency by contacting a consumer protection lawyer.
Ignoring a lawsuit filed by a bill collector can lead to the judge presiding over the case to issue a costly judgment against you. The judgment will force you to pay off the outstanding credit card or personal loan account, as well as take care of court costs and attorney fees.
Judges have several ways to recover the money sanctioned by a judgment. The court might approve the garnishment of wages, place a lien against your property, and/or freeze any money in one or more of your bank accounts.
How to Respond to a Lawsuit Filed by a Debt Collection Agency
The first thing you need to do after receiving a court summons initiated by Consumer Portfolio Services, Inc. is to reach out to a consumer protection lawyer that specializes in handling cases covered by the Fair Debt Collection Practices Act (FDCPA).
Enacted in 1977, the groundbreaking consumer protection law prohibits bill collectors from calling consumers between the hours of 9 pm and 8 am. The FDCPA also makes it illegal for a debt collection agency to harass you by making repeated phone calls throughout the day to your home and work landlines, as well as to your cell phone.
Your FDCPA attorney has several options to fight back against a lawsuit. He or she might decide to negotiate a debt settlement with Consumer Portfolio Services, Inc. that allows you to pay off the debt in question for a fraction of what was originally owed on the credit card or the personal loan account.
You might be able to invoke your state’s statute of limitations for debt collections. The clock for the statute of limitations typically starts on the last day there was activity on a consumer account.
Do You Qualify for Monetary Damages?
FDCPA provisions allow consumer to seek two types of just compensation for one or more violations of the FDCPA: Statutory and monetary damages. The awarding of monetary damages often covers the pain and suffering caused by physical and/or emotional distress.
Physical symptoms of the duress triggered by the unlawful actions of a third party debt collector include intense migraine headaches and life threatening ulcers. Your FDCPA lawyer will present physical evidence in the form of medical documents and call expert healthcare professionals to the stand to testify on your behalf.
The longer you wait to respond to a lawsuit filed by Consumer Portfolio Services, Inc., the more likely the judge overseeing the case will issue a judgment against you. Schedule a free initial consultation with an accomplished FDCPA attorney to determine the best course of legal action.
- What to Do If a Collection Agency Sues You?
- How to Stop a Debt Collector from Threatening Legal Action
*Disclaimer: The content of this article serves only to provide information and should not be constructed as legal advice. If you file a claim against Consumer Portfolio Services, Inc. or any other third-party collection agency, you may not be entitled to any compensation.