Medicredit — How to Settle Your Debt

Co-Founder of SoloSuit
George Simons, JD/MBA

George Simons is the co-founder and CEO of SoloSuit. He has helped Americans protect over $1 billion from predatory debt lawsuits. George graduated from BYU Law school in 2020 with a JD-MBA. In his spare time, George likes to cook, because he likes to eat.

Edited by Hannah Locklear

Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: Sued for a debt by Medicredit? This guide is for you. Use SoloSuit to respond in 15 minutes.

Receiving multiple phone calls and letters from debt collection agencies like Medicredit can be a frustrating and overwhelming experience for many folks. These interactions are unpleasant, and collectors may use pressure tactics to try and persuade you to pay the amount owed. It is quite common for debt collectors to make false representations and promises. For example, many people have reported that debt collectors will promise to “immediately” remove their inquiry from your credit report if you agree to repay the debt. In reality, the debt collector does not have such authority to initiate an immediate removal of an inquiry on your credit report.

If you receive a notice and are surprised because you've never heard of Medicredit, you are not alone. There is a very good chance that you did not make a purchase or take out a loan directly with Medicredit.

As a result, you may be asking yourself, “What the heck is Medicredit?” Well, Medicredit Corporation is a collection agency owned by The Outsource Group. They purchase charged off debts from other creditors at a substantially discounted rate. Medicredit then turns around and initiates the collection process. If they collect on the charged off account, they generate a sizable profit.

Since the business model of Medicredit involves collecting on charged off debts, they usually employ debt collectors who are aggressive. Medicredit also frequently files debt collection lawsuits in an effort to try and collect on the full amount owed from the charged off debt.

If you or a loved one are receiving endless calls and letters from a Medicredit debt collector, or were served with a debt collection lawsuit, do not give up hopet. Instead, take action by utilizing the vast resources available through SoloSuit. We assist consumers who are being hounded by debt collectors and taken to court in debt collection lawsuits. We've compiled relevant information that helps demystify the process associated with debt collection lawsuits so you know what to expect and what steps you should take to protect your rights against a debt collection company like Medicredit.

You Have Rights When Contacted by a Medicredit Debt Collector

Medicredit routinely tries to take advantage of consumers by preying on their lack of knowledge about their rights under the Fair Debt Collection Practices Act (FDCPA). Many people are unaware of the fact that debt collectors are generally prohibited from engaging in harassing and vulgar phone calls and cannot contact you at work or at all hours of the night. If a debt collector engages in these inappropriate practices, you have grounds to file a lawsuit against the debt collection company for violating the FDCPA.

How to Defend Yourself If You are Sued by Medicredit in a Debt Collection Lawsuit

If you are served with a debt collection lawsuit, it is important to be proactive and respond to the Complaint. Why? Because you only have a finite period of time to file your “Answer” to the Complaint. In fact, when you are served with the Complaint, the proverbial clock begins to run on the time period you have to respond to the lawsuit. Here are some tips you can use when drafting your Answer to the Complaint:

Never admit liability for the debt. This is because Medicredit bears the burden of establishing liability. Medicredit must produce evidence to show that you actually owe the debt (which is important because it is quite common for debt collection companies to sue the wrong person).
File your Answer with the Clerk of Court in the time period provided (in most debt collection cases, your Answer needs to be filed within 20 or 30 days after you are served with the Complaint).
Mail a copy of your Answer that was stamped by the Clerk of Court to Medicredit.

SoloSuit makes it simple to respond the right way.

Raise These Affirmative Defenses in Your Answer

When you respond to the Complaint, it provides an opportunity to highlight the significant deficiencies in Medicredit's lawsuit. Remember, in a debt collection lawsuit, the debt collector carries the burden of proving you are liable for the amount owed. This means the debt collector must prove the following with actual evidence:

You are in the fact the individual responsible for repaying the debt;
The debt collector has the legal right to take legal action against you; and
You owe the specific amount listed in Medicredit's Complaint

If Medicredit does not have sufficient evidence to establish these three legal elements, there is a good chance you will prevail in the lawsuit.

With SoloSuit you can make the right affirmative defenses the right way.

If applicable, you should also consider raising the statute of limitations as an affirmative defense. You may be asking, “What the heck is a statute of limitations?” Well, the statute of limitations is essentially the amount of time someone has to file a lawsuit against another person or company. If the facts of your case indicate that Cavalry SPV is suing you on a debt where the applicable statute of limitations has expired, then you can file a motion to have Medicredit's debt collection lawsuit dismissed with prejudice.

In addition to raising the statute of limitations as a way to defeat Medicredit, you should consider filing a “Countersuit” or “Counterclaim” if you have evidence that Medicredit violated a provision of the FDCPA. If you have this type of evidence, you could be eligible for compensatory damages and reimbursement of your legal fees.

To learn more, view the resources and information available on SoloSuit.

Resolve debt with Medicredit through debt settlement

Most debt collectors would rather settle debt outside of course than endure the long, complicated legal process. This means that you can reach out to Medicredit before any impending court date to discuss settlement options. Most collection agencies will work with consumers to settle before going to court.

Make an offer to the debt and be prepared to receive a counteroffer. It may take some time to negotiate, but it will be worth it in the end because you will likely save money, avoid going to court, and Medicredit will dismiss the case as long as you uphold your end of the agreement.

What to learn more? Check out our guide on How to Settle Debt in 3 Steps or watch the video below where an attorney explains which steps consumers should follow to settle debt outside of court.

Settle with SoloSettle

Make an Offer

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit: A Student Solution To Give Utah Debtors A Fighting Chance

If you need help in responding to a debt collection lawsuit, consider utilizing SoloSuit. What is SoloSuit? Take a moment to review these FAQs to learn more.

(How to stop receiving calls from Covington Credit)

Overview of What To Do If You are Taken to Court by Medicredit

Here is an overview of what you need to do if you are taken to court by a debt collection company like Medicredit:

Make sure you file your Answer within the timeframe provided by the Court.
Never admit liability for the alleged debt since the burden is on the debt collector to establish that you in fact are responsible for the amount owed.
Take note of any phone calls made before 8:00 A.M. or after 9:00 P.M, any phone calls made to your place of work, and any use of vulgar or inappropriate language.
In your Answer responding to the Complaint, make sure you raise any applicable affirmative defenses (e.g., the statute of limitations) and demand that the debt collection company prove that you are responsible for the specific amount owed. These are examples of the types of strategies you can use to defeat Medicredit in court.
Consider filing a countersuit or counterclaim for any violations of the FDCPA.

Best of Luck!

Additional Resources

Tips on you can to file an FDCPA lawsuit against a debt collection agency

Advice on how to answer a summons for debt collection.

Effective strategies for how to get back on track after a debt lawsuit.

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