Chloe Meltzer | July 21, 2022
Summary: Are you being sued by Sherman Acquisition for an old debt? Learn why they're suing you and how to win your case.
If you are being called or have been served a lawsuit by a debt collector named Sherman Acquisition, then you might want to run and hide. This is incredibly common, with more than 70 million Americans being in debt. Unfortunately, one-quarter of Americans have felt in fear when communicating with a debt collector, and in these cases, you need to know your rights. This will allow you to protect your assets and beat Sherman Acquisition in court.
Sherman Acquisition Corp is a debt collector that is legally regulated by the U.S. Security and Exchange Commission. It exists in Delaware and has had many alleged offenses of violations against the FDCPA. The FDCPA (Federal Fair Debt Collection Practices Act) governs how debt collectors may approach and speak with consumers. Sherman Acquisition has violated many of these practices.
Alleged violations of the FDCPA by Sherman Acquisition include contacting alleged debtors without a lawful justification. They also continued to communicate even after having requests in writing to cease all communication. This is a violation of cease and desist.
Another violation included contacting consumers where they worked. This is a common violation even after the debt collectors were aware that such contact was prohibited. In addition, they discussed the consumer's debts with a third party, such as a friend, employer, or anyone other than the consumer or their spouse.
Finally, Sherman Acquisition falsely claimed that they were working on behalf of an attorney. This along with failure to respond to consumers' requests for debt verification, is completely in violation and eventually led to a countersuit.
The most important thing you should know about a debt lawsuit is to respond. This must be done in response to the notice that arrives in the form of a summons and complaint.
For those who owe the debt, they might feel like they have no choice but to ignore the debt. This is not further than the truth. If you do not respond a default judgment will be placed against you, but if you respond you will have a chance to fight it.
Default judgments open up other avenues of debt collection. They will be able to take money from your bank account and garnish your wages. They may even be able to add on extra fees in terms of court costs and attorney fees. This can increase the balance immensely, which is why you must respond to the debt collection lawsuit. If you do not, you will no longer be able to fight the lawsuit through phone or letter, only in court.
The first thing you need to remember when responding to a lawsuit is not to admit any liability. This is essential because you need to make sure that you force the creditor to prove the debt. Then you can file your Answer with the Clerk of Court, and send a stamped copy to the debt collector's lawyer.
You must respond to the lawsuit within the period listed on the summons and complaint. If you miss the deadline it will be the same as non-appearance. Especially because once a judgment is entered in court, you will no longer be able to dispute the debt.
One way to respond to a debt lawsuit is to challenge Sherman Acquisition's right to sue. Most often the debt will have been sold multiple times, and whoever owns the debt will not be able to prove that they can legally sue you. Because a judge will never seek this information on their own, they will take your silence as an admission of responsibility. Asking for documentation will have the judge likely back your request.
Legally, to sue you, Sherman Acquisition must provide a credit agreement signed by you. They also have to show documentation of the chain of custody. This ensures that the paperwork is correct, and owned by the company looking to sue you. If a plaintiff cannot provide this, they cannot sue you.
They are also required to carry the burden of proof. This simply means that they must prove you are responsible for the debt and that they have the right to sue you. They also must show that you owe a specific amount. This can be done by showing the balance was increased when you made purchases, or that it was increased by fees you agreed to.
One major loophole is the statute of limitations. This governs how long creditors may bring your lawsuit to court. It varies based on the state and type of lawsuit, but typically is anywhere from four to six years. This will begin on the last day that you used the account. This can mean making a payment, withdrawing funds, or making a purchase.
You must look into this because if you do not you may awake a “zombie debt” that you cannot legally be sued for. Although you will still owe the debt, you can avoid going to court and having your wages garnished or money being taken from your bank account.
When debt collectors like Sherman Acquisions violate the FDCPA it is common to sue them for your legal fees and damages. This is a great option to bring this company to justice, obtain compensation for damages, and also possibly avoid the debt lawsuit altogether. Typically when you countersue, the company will attempt to have you drop your lawsuit, by dropping theirs. They may try to negotiate with you, and this can greatly work in your favor.
Be aware that your credit follows you your entire life. This means you want to try to stay in good standing, and ensure that you keep an eye on your credit report as much as possible, to avoid a debt lawsuit altogether.
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.