Chloe Meltzer | October 19, 2022
Summary: If you're being sued by MGM Collections, you'll need a strong defense. Find out how you can stand up for yourself and win your debt collection lawsuit!
MGM Collections, also known as MGM Capital Management, is a debt collection agency located in Temecula, California. Specializing in medical debt collection, they also go after other consumer debt as well. MGM Collections is often found on credit reports as a collections account. Whether you forgot to pay a bill, or you didn't know the bill existed in the first place, your account was sent to this debt collector to collect.
Collections can hurt your credit score. They remain on your credit report for up to seven years, even if you pay it. This means that any time you have an account go to collections your score might go lower. This is why it is essential to know your right and how to fight an MGM Collections case in court for debt before it is too late.
The first step when it comes to a debt collection lawsuit is to respond. This is essential because if you do not respond a default judgment will be entered against you. If you cannot pay the debt you should still respond. Default judgments allow the debt collector being able to garnish your wages or pull money directly from your account. They can also add attorney's fees and interest to the balance to make matters worse. This can as much as triple the overall costs.
Once a lawsuit is filed, the collection agency or creditor will be known as the plaintiff. At this point, the matter will go before the court and you can no longer respond by phone. Instead, you will be required to send a legal “Answer.” This should never admit any liability for the debt. You want to attempt to force the creditor to prove the debt, as well as your responsibility for it. Next, an answer should be filed with the Clerk of Court, and you should ask for a stamped copy. This is so that you can then send the copy certified mail to the plaintiff (debt collector).
You must respond within the period set by the lawsuit. This is typically anywhere from 20 to 30 days from the date on the notice. If you miss this you will then suffer the same consequences as ignoring the summons completely. Once a judgment is entered it can be difficult or impossible to dispute the debt from that point on.
One of the best ways to respond to a debt lawsuit is to challenge the right to sue. At this point, the debt has typically be sold many times, but at least more than once. MGM Collections will need to prove that they legally own the debt and have the right to sue you for the process to continue.
If you do not respond a judge will not look to find this information on their own. Your silence however will seem like an admission of guilt for the debt. This is why you must send your answer and then challenge their right to sue by asking for proof.
This can be done by showing that the balance was increased when you made purchases, or that it increased through fees. Other examples include a credit agreement that you signed, or the documentation of the chain of custody of all paperwork. This shows that the paperwork is accurate and came from the original creditor.
Your account has most often changed hands many times before the lawsuit began. This is not uncommon and can result in a dismissal of the lawsuit or for the ability to settle for a lower price.
If your debt is years old, the statutes of limitations might save you and end your case. The statute of limitations is a set of laws that governs how long creditors can sue you in court for debt. Each state has different laws when it comes to various types of debt. In some states, it can be four years, while in others it can be six, two, or even twenty. These laws protect you as a consumer but you need to be aware of how long your debt has been active.
Typically this period starts on the last day that you were active on the account. Activity is considered making a payment or drawing funds from an account. It might be the last time you used your credit card or pulled funds from a loan.
Any debt collectors that violate the Fair Debt Collection Practices Act will be required to pay for both your legal fees and any damages. This should only be a step to take in cases of serious violations, but it is something to consider. Typically this will also provide you compensation for any related damages as well.
If you owe a debt and are also suffering from other forms of debt or financial distress, then bankruptcy might be a good option. When this occurs, an automatic stay also occurs. This means that your debts can no longer be collected. Despite this seeming like a good option, it will have huge ramifications on your financial status.
In some cases, this can be a step in the right direction toward a clean slate, but in other situations, it will follow you and make it difficult to make financial decisions. Regardless, whatever decision you make will need to be based upon your unique situation.
SoloSuit makes it easy to respond to a debt collection lawsuit.
How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.
"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James
Here's a list of guides for other states.
Being sued by a different debt collector? We're making guides on how to beat each one.
Is your credit card company suing you? Learn how you can beat each one.
Need more info on statutes of limitations? Read our 50-state guide.
Need help managing your finances? Check out these resources.