What Are My Debt Collection Rights?

Jeff Lohman, a consumer protection attorney in Arizona, brings years of courtroom experience and personal insight to this important topic. After losing everything during the 2008 mortgage crisis and facing significant credit card debt, Jeff decided to switch careers and go to law school to help others stand up to unfair debt collection practices.

While this blog draws on his expertise, it is for educational purposes only and should not be taken as legal advice for your specific situation.

You have the right to request debt validation

Let’s start with one of your most powerful tools: the right to debt validation.

Under the FDCPA, if a third-party debt collector contacts you, you have exactly 30 days from their initial written notice to request verification of the debt. That means you can ask them to provide the following information:

• Who the original creditor is
• How much you owe
• Prove they have the legal right to collect on the debt

This is a crucial step. If you don’t act within the 30-day window, you may lose your right to dispute the debt, and the collector can move forward with more aggressive actions like filing a lawsuit. Jeff explains:

“The important thing when dealing with debt collectors is… you have a right to request more information as to the validity of the debt, who the debt came from. You can't decide three years later, ‘Well, now I don't know what this is anymore.’ It’s 30 days after your initial collection letter—that’s your window to validate.”

People may be surprised to learn that some collectors lack the necessary documentation to prove the debt is valid. So take advantage of your right to ask for more information. If something doesn’t look right, or if they can’t respond, your case may stop right there.

You have the right to be free from harassment when dealing with debt collectors

Debt collectors are allowed to contact you, but they’re not allowed to harass you. The FDCPA specifically states, "A debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt."

So what does that mean in practice?

• Repeated calls throughout the day
• Profanity, threats, or intimidation
• Calling at odd hours (before 8 a.m. or after 9 p.m.)
• Not identifying themselves or the purpose of the call

Regulation F (an update to the FDCPA) attempted to clarify this by capping collector phone calls at 7 per week, but that regulation has since been pulled back. Still, it's a good rule of thumb—if you’re getting multiple calls a day from the same collector, that could be harassment.

If you're being harassed:

• Keep a written log of calls
• Save voicemails or texts
• It may be a good idea to answer and tell them directly: “I can’t pay right now. Please stop calling.”

You have the right to request that they stop contacting you. And if they continue, it could be a violation worth reporting. Jeff further breaks down what harassment might mean when dealing with debt collectors:

“A debt collector may not engage in any conduct the natural consequence of which is to harass or oppress or abuse any person in connection with a debt. If you’re getting two or three calls a day, that could be harassing depending on what's going on. I usually advise clients to answer the phone and have a conversation—if you tell them you can’t pay, and they keep calling, that could cross the line.”

Collectors cannot contact your family, friends, or employer (in most cases)

Another common consumer protection under the FDCPA involves third-party contact. Debt collectors are allowed to contact other people only to locate you—and even then, only if they don’t already have your correct contact information.

They are not allowed to:

• Disclose the debt to anyone other than you
• Say they’re calling from a debt collection agency
• Mention the amount owed or the nature of the debt
• Repeatedly contact friends, family, or your employer

If a collector calls your boss, your parents, or your neighbor and mentions anything about your debt, that’s a clear violation of federal law. If this happens, write down exactly what was said and when and consider speaking with a consumer protection attorney. Jeff highlights:

“If [the collector] has your correct contact information and they’ve already spoken with you, they cannot call your work, or your mom, or your dad, or your friends to ask for it again.”

If you're being sued for debt, you still have rights

Too many people panic when they receive court documents. Even if it feels intimidating to address, it's important that you do not ignore debt collectors.

If you’re being sued by a debt collector, and they’ve asked the court for a default judgment, that means you’re in danger of automatically losing the case simply because you didn’t respond.

Here’s what you should do:

1. Don't ignore the lawsuit.
2. Contact the court and confirm your deadline to respond.
3. Reach out to the attorney or law firm representing the collector to understand their position.
4. File an Answer before the deadline—this prevents a default and protects your rights.

You can SoloSuit to file an Answer in minutes, or you can find templates online through your state’s court website. Just don’t wait. Once a judgment is entered, they may be able to garnish your wages or levy your bank account.

If you were never properly served with court papers, you may be able to file a motion to vacate the judgment (in some states this is known as a motion to set aside judgement) and get a second chance.

You may have more debt negotiating power than you think

Debt collection often comes down to what’s realistic, not what’s owed on paper and your personal circumstances have a heavy impact on that.

If you’re unemployed, receiving disability or Social Security, or simply don’t have any assets a collector can reach, you might be considered “judgment proof.” That means that even if the collector sues and wins, there’s little they can do to collect from you.

This gives you significant leverage. In many cases, collectors would rather settle for a smaller lump-sum payment or agree to a manageable plan than pursue legal action that goes nowhere.

Every case is different, but your financial reality plays a major role in what kind of deal you can make.

Get collection letters reviewed if something feels off

The FDCPA also requires that collection letters use clear, specific language. If a letter uses confusing terms, or if it could be interpreted in more than one way, it may be violating your rights.

Here are some signs a letter might cross the line:

• It demands immediate payment without offering a way to dispute the debt
• It implies legal consequences that aren’t real
• It uses threatening language or fails to identify the sender

If you're unsure, have a consumer protection attorney review the letter. Some firms offer free consultations to help you understand whether your rights have been violated. Jeff mentions this and emphasizes:

“If a letter could have two meanings with the words it’s using, that’s considered a violation. If it’s confusing, that could violate the FDCPA. There’s very specific language that has to be in debt collection letters. Have an attorney look at it if you’re not sure.”

Know how to spot a debt collection scam

One critical detail most people don’t know: The FDCPA only applies to third-party debt collectors. That means original creditors, like your bank or credit card company, aren’t bound by the same rules unless your state provides extra protections. They can engage in actions that may be considered harassment under the FDCPA.

Some states may offer broader consumer protections, but many don’t. So if your original creditor is calling five times a day, it may be legal.

Jeff's perspective is to also be on the lookout for debt collection scams. They’re everywhere and there are many of them. He says that if a supposed debt collection company calls:

"There is never ever a reason that you have to pay something immediately over the phone. You will never get arrested. They will never take your house. Get a phone number and call that company back. Ask them to send it to you in writing. [Do not pay] someone because they scared you. It is happening all the time. They're making millions of dollars from it. Do not be a victim to these scams."

You should never give out financial information or send money to someone who pressures you into a payment. Ask for everything in writing. If it’s legitimate, they’ll send it.

The bottom line

Debt collectors have rules to follow. You have the right to request validation, avoid harassment, protect your privacy, and respond to lawsuits. Knowing your rights under the FDCPA, and how to use them, can give you confidence, clarity, and control.

If you’re being sued, don’t wait. Respond to debt collection lawsuits fast with Solo. Settle your debt for less with SoloSettle.

Transcript

Hannah (00:36):

Hello everybody. Welcome to the Debt Hotline. Thank you so much for listening. We're really excited and we have a very special guest joining as well. My name is Hannah Locklear. I am a part of team Solo. At Solo. We help people respond to debt lawsuits, pro se and settle their debts outside of court, and we do that through technology. And as I mentioned before, we have a special guest, Jeff Lohman from Guardian Litigation Group, and I'm going to take a minute to introduce Jeff and then we will turn the time over to him to fill in any gaps that I might've missed in introducing him. And I have a few questions prepared about our topic. Specifically, we're going to be discussing debt collection rights in general.

Jeff Loman is an experienced consumer protection attorney with a focus on debt collection defense and creditor harassment claims. He's a graduate with honors from Western State College of Law and he is admitted to practice in Arizona as well as the federal districts of Minnesota, Colorado, Eastern District of Texas and Arizona. Over the past several years, Jeff has served as a lead counsel in hundreds of consumer arbitration matters, and he has gained extensive experience in both state and federal court. His hands-on work navigating litigation and arbitration gives him a practical solutions focused approach to helping consumers understand and exercise their rights when dealing with debt collection and credit reporting issues. At Guardian Litigation Group specifically, Jeff is part of a team that's dedicated to protecting consumers, empowering them with knowledge and helping them resolve debt responsibly and confidently. Did I miss anything? Do you want to take a minute to further introduce yourself?

Jeff (02:14):

I've been married for 20 years. I have three kids, lost everything in the mortgage collapse of 2008, which got me into this and I've always wanted to be a consumer protection attorney. I went to law school for it, but no, other than that, you've got my admissions correct and yeah, I'm only admitted in the state of Arizona, statewise.

Hannah (02:34):

Thank you for telling us a little bit about you and your family. It's always nice to get a little more of a personal touch on that. And it sounds like to me maybe you've had some personal experiences as a consumer dealing with hard consumer focused issues. It sounds like you were affected by the housing market crash in 2008. Can you tell us a little bit more about what led you to want to be a consumer protection lawyer and why you specifically that part of law?

Jeff (03:01):

Yeah, so my wife and I were both in the mortgage industry in 2007 and 2008. We just bought our first house and everything turned upside down around that time. So we had a lot of credit card debt. We had to short sell our house and settle out the debts on our own. This industry, the debt settlement industry wasn't really robust at the time and eventually that led me to joining the debt settlement industry. And with my degree, I became an operations manager for a couple companies and I saw my clients getting harassed a lot.

I wasn't an attorney at the time, so I was referring them to law firms that could help. And through that I thought, well, heck, I might as well become an attorney. So I decided to go to law school with two kids and got through it, and I kind of always wanted to get into this. I think we were talking about earlier, I really got into TCPA for a while in 20 17, 20 18, 20 19, and then that all changed and now we're really big in credit reporting stuff and FCRA and stuff like that. So I've kind of been around the block at this point and I come from this. So losing it, losing everything, having to settle your debts, not knowing what to do, I've been there and done that.

Hannah (04:27):

Well, I think that it's really special to get to hear from your perspective having had personal experience in dealing with debt and then also specifically choosing this career as the type of law that you would practice. I think that's very telling and I'm sure that we'll have a lot of people who get great answers to their questions based on your experience. So thanks so much, Jeff for joining. I think with that we'll just jump right into a few questions that I've prepared. For anyone listening, you can ask questions to team solo at 801-613-8181. That is the debt hotline. So with that being said, I did want to ask you, Jeff, when someone is dealing with debt collection, what are their basic rights under federal law when dealing with debt collectors? And if you want to mention the FDCPA and how it protects consumers, we'd love to hear any thoughts, but just what are some of our basic rights as consumers that we have when dealing with debt collectors?

Jeff (05:29):

I think the affirmative right that the federal law gives to you, and we can talk about the law in a little bit here, is your ability to request more information and your ability to what's called validate the debt. Now, you also have a right to be free from harassment, but that's more of a defensive, right? You can't go out there and just start yelling at people to stop harassing you if they're not actually harassing you. But the important thing when dealing with debt collectors and those initial debt collection letters you receive and stuff like that is you have a right to request more information as to the validity of the debt, who the debt came from. So make sure what's being collected on.

Hannah (06:15):

So it sounds like if you've ever been contacted by a collector, one of your most basic and important rights is you can ask them to validate the debt and prove that the debt is real and that you actually owe it. And I think that's an important right to exercise.

Jeff (06:28):

I agree. The funny thing with that though is there's a timeframe for that. So it's 30 days after your initial collection list. It doesn't just carry on forever, right? You can't decide three years later that, well, now I don't know what this is anymore. It's after that initial collection letter that you get from the debt collector. But yeah, it's a pretty powerful, right.

Hannah (06:48):

So you've got 30 days from the initial contact from the collector to ask them to validate it and protect your rights that way.

Jeff (06:54):

That's correct.

Hannah (06:55):

Super good to know what is considered A lot of people when they're dealing with collectors, they feel like they're being harassed. Debt collectors do have a job, they're trying to collect money, and it can be kind of a very fine line between persistent contact and harassment. So can you tell us, Jeff, what is typically considered harassment under the law?

Jeff (07:19):

Of course, before I continue to answer questions, we should disclaim, I'm an Arizona attorney, A lot of this is federal laws we're citing to, it's probably on somewhere out there, but please don't accept any of this as legal advice for your own specific situations. This is just kind of knowledge understanding of what's written into the ft, CPA a, stuff like that. The idea of harassment or I guess the limitation on harassment comes from section D and that section says a debt collector may not engage in any conduct, the natural consequence of which is to harass or oppress or abuse any person in the connection of a debt. And so where you see it most played out is annoying phone calls, right? Phone calls that just go on seven phone calls a day, 13 phone calls a day type of thing, or abusive language. I don't see that as much anymore.

A lot of the debt collectors have consolidated and they're bigger companies now, and so their quality control is a lot better. There are specific rules that say they have to tell you the name of the company who they're calling from, they should be telling you that they're collecting a debt.

The funny thing is the CFPB tried to make the rules simpler and easier to follow. So they produced what was called regulation F, and it was all these guidelines and it said a debt collector cannot call you more than seven times in seven days. And so you knew if they called you more than seven times in seven days times that was harassing. The problem is that regulation F got pulled back about a year ago. So the case law is kind of weird. I couldn't tell you an exact number anymore, but I think it's a good guideline if you're getting two or three calls a day that could be harassing depending on what's going on. What I usually advise clients to do is answer the phone and just have a conversation with them, let 'em know that you can't afford to pay them right now. And then if they continue to call you that's harassing because you've already had a conversation with them, they should already know that you can't pay 'em. Why would they continue to keep calling you the next day or the day after that?

Hannah (09:35):

I want to echo what you've said. If you are getting contacted by a debt collector in many cases, I think it can be a good thing to just respond and either ask them to validate the debt or let them know, I can't afford to pay this. I think open communication is usually key, especially if you're trying to just settle the debt. Maybe you know that you owe it, you can't afford it. Communication is key. And like I said before, debt collectors, they're human beings too and they're just trying to do their job, but that doesn't mean that you won't have the occasional rogue debt collector that's calling aggressively and too many times. So I think it's really important to know your rights. That's frustrating that the regulation F got pulled back and now we don't really have a clear number on what is considered harassment as far as phone calls from debt collectors go. But what are some other things outlined by the FDCPA that would be considered harassment?

Jeff (10:28):

If you have a letter that you receive, I would suggest having an attorney review it because there's very specific language that has to be in the letters, and so have an attorney that practices in this area look at that letter. If the letter could have two meanings with the words that it's using, that is considered a violation of the FDCPA because it's, what's the word? Basically, it's confusing. I can't think of the legal word, but if it's confusing, that could violate the FDCPA. Again, the foul language is an easy one. If they're calling you and not telling you who they are, I would say talk to an attorney about that as well. They can't contact third parties for anything other than location information. So this goes right back to what you just recommended about engaging with a debt collector just once. Don't talk to 'em all the time, but at least once, tell them about your situation and why you fell behind on the debt. But if they have your contact information and they know it's correct and they've already spoken with you, they can't call your work looking for location information. They can't call your mom or your dad or your friends looking for location information because they already have it and they know they have it.

Hannah (11:37):

Yeah, I think there are a lot of ways that they can cross the line, but most debt collectors are trained to be compliant with FDCPA, and I think most debt collection agencies do try to be compliant, but again, that doesn't mean that they're always perfect at it. So thank you for a little insight on what harassment might be considered when dealing with debt collectors. I think we're going to go ahead and jump into some real people questions. And again, I just wanted to echo what Jeff had said before, give a disclaimer that any information we discuss in this podcast episode is purely educational, and we hope that we can give a resource or point people in the right direction, but it is not considered legal advice, especially for your particular case. So just keep that in mind as we go through some of these questions, but hopefully they do help our answers do help point you in the right direction. So our first question is going to be from Francis in California and Francis asks, what is the next step if a company that sued me asks the court to make a ruling by default?

Jeff (12:38):

So this would be very specific to state rules in California, right? And I'm not a California licensed attorney, but I can tell you what you need to do is to contact the court and contact the attorney for that company to say, Hey, let me file an answer. A default judgment is what you're referring to, and that's when a defendant does not respond. And so the court issues a judgment by default because there's nothing for them to consider. So you need to contact the court, call them now and say you're requesting an extension of time to file your answer, but that's what you need to do. A default is when a party does not answer.

Hannah (13:19):

According to my understanding, I think in California the deadline to respond is 30 days. So yeah, I think I agree with you, Jeff, calling the court figuring out when your actual deadline might have been getting a better understanding of when that deadline is. And then I didn't know that you could actually call the plaintiff's lawyer, the opposing lawyer and say, Hey, can you give me a few days to respond?

Jeff (13:43):

Of course. It's easiest to go to the court if all the parties agree. If you can go to the court and say, Hey, your Honor, I spoke with Attorney Smith representing portfolio recovery and they agreed that I could have 30 more days to file an answer. The court's going to grant that. Why would the court oppose that? I know even in Arizona, so I practice in Arizona, I do debt defense in Arizona, even after the plaintiff has asked for a default judgment, you still have time to submit your answer to the court. So I don't know what the exact days are in California, but if they haven't issued that default judgment, you still have time.

Hannah (14:21):

That's super good to know, and it's very good to know that you can contact the lawyer and try to get on the same page with them. Do you think that in most cases lawyers want a default judgment or do you think they would rather the person they're suing engage in the lawsuit and file an answer and then try to maybe settle outside of the court setting? Do you think they're looking specifically for default cases in most debt collection cases? What would you say?

Jeff (14:46):

I have two answers to that, right? It's what does the individual attorney, sure, they probably want to engage with everyone and settle everything out and make their clients money. What is the practice? I think it's something like less than 2% actually of people that get sued actually get an attorney and file an answer. So the practice is default judgments just thousands of them a month, and that's how they run their practice. I would hope personally as the attorney, even the plaintiff's attorney, that they would like to engage and get these settled out. But the actual application of all that is just a lot of default judgments.

Hannah (15:25):

Well, great to know. And I do want to say for anyone who has been sued, whether you're in California or any other state, you can use solo to respond to the lawsuit, pro se, meaning you don't need an attorney to represent you, but if your case is very complicated and maybe it involves quite a significant amount of money, it is a very good idea to consult with an attorney and figure out what your options are and see if you could find someone to take on your case. And it sounds like Jeff, specifically in Arizona can help people facing those kinds of cases represent them and help you file an answer.

Jeff (15:59):

I'm sorry, just to add on top, there are a lot of attorneys that do it. It is not very expensive to hire an attorney. What I've experienced for a long time now is you get sued, you stick your head in the sand, you don't want to deal with it, and then two years later you get a garnishment. Two years later, your bank account gets levied and you thought it just went away magically, and it doesn't. They do collect on those default judgments and you never know when or where it's going to hit you. And so avoiding it is the worst thing you can do.

Hannah (16:33):

I 100% agree. At solo, we've helped more than 300,000 people respond to lawsuits, and I, in our experience interviewing people and learning more about these types of cases, the worst case scenario is to just ignore it and then end up getting a garnishment or having your bank account frozen or having a levy put in your bank account. So yeah, definitely agree. Don't ignore it. Do something, take action. Whether it's finding an attorney, filing an answer through solo or finding a form online, most courts have forms online that can help you respond on your own. So do something. Don't just bury your head in the sand, for sure. Alright, next question comes from Carmen in Florida. Carmen says, I've been getting calls from a collection agency about a credit card. I stopped paying in 2019. They've started calling my job and my sister, is that even allowed? And what can I do to make it stop?

Jeff (17:29):

So this goes back to the conversation we were having earlier. Call 'em. Call 'em and say, Hey, here I am. Here's my phone number. As far as the card being stopped, getting you paying on the card in 2019, I don't know the statute of limitations off my head in Florida, statute of limitations does not stop collection activity. All the statute of limitations deals with is how long someone can sue you. That's it. They can collect on that debt forever, but they can't sue you past whatever that time is that Florida allows. I would contact them, make sure they have your phone number, and then if they do call your family or friends or work after that, I would consider that a likely violation of the FDCPA because they're only doing it just to bother you.

Hannah (18:16):

Yeah, great to know that you've got rights, and I think one of those very basic rights is debt collectors can't contact your friends or your employer regarding your debt unless it's to set up a wage garnishment. Right. But if they're just in the act of collecting and they're just in the initial phase of collecting, they can't contact your family and friends and bother them about the debt, correct?

Jeff (18:39):

Well, they can't disclose anything about the debt. So all I could say is, Hey, I'm Jeff trying to locate John, type of thing. You can't even say if the name of my company was Acme debt collectors, I really couldn't even say that because it's essentially spilling the beans that I'm trying to collect on a debt from you.

Hannah (19:01):

So they have to be super careful if they are contacting anyone to make sure that it's not mentioning anything revolving around debt. Right?

Jeff (19:09):

Correct.

Hannah (19:10):

Wow. Okay, great to know. Let's see. This question is from Sandra in Georgia. Sandra says, I received a loan application, so I filled it out. I looked over the contract, it wasn't the best I'd ever seen, but I accepted it. They started taking $267 a week out of my account. They sent this agreement that I had never seen before. I would've never agreed to that. The interest rate was 400% if not more. They had me paying $267 a week for 15 years. Is this legal? I never signed that document. Thank you for your time. Any initial thoughts on that, Jeff?

Jeff (19:44):

Well, one, I don't know. I don't know if it was legal or not. Without reviewing it, I'm not a Georgia State attorney, which Georgia State law I would assume applies since you're there or whatever the choice of law provision is in that contract. But that's a great reason to reach out to an attorney and have them review it. I honestly don't know. I've seen thousand percent interest rates on some of those payday hard money loans, and they're legal in some states, I don't know Georgia specifically. And it's so hard to get that to stop given them permission to pull the money directly out of your bank account. I think the only way to stop it is to close that bank account down and open another one. Not that I'm advising anyone to do that, unfortunately, I just don't know without reading the contract.

Hannah (20:35):

Well, yeah, thank you for being upfront about not being sure. I do think there's probably a lot of factors that would play into knowing whether or not this is legal, but yeah, I agree with what Jeff said. It might be a good idea to contact your attorney and contact an attorney and figure out what your rights are in this particular situation. Let's see. We've got another question. This is an Arizona specific question for you, Jeff. No, Arizona. This question is from Walter in Arizona. It says, is a debt collector obligated to provide an operating license in Arizona? Upon me asking the debt collector declined to provide such a license when I asked twice formally in a letter.

Jeff (21:16):

No, not that I'm aware of.

Hannah (21:18):

So it sounds like a debt collector doesn't have to prove or give their operating license. If you ask them.

Jeff (21:27):

Certain states do require it. I'm not aware of Arizona requiring a debt collector operating license to collect on debt in Arizona.

Hannah (21:37):

Gotcha. Alright. Let's see. We've got another question. This one's from Aaron in Kentucky. It says, I'm in court with Stinger and Stinger and I kept them at bay for a while once with SoloSuit and once with Cha bt I called them to possibly settle and they only offered a 12% discount. Is it possible to get more off the debt is $6,000, and I offered them $3,600. They countered with 5,100. So it sounds like you're kind of in the middle of negotiating with Stinger and Stinger, which is a debt collection law firm. Jeff, do you have any thoughts on negotiating or it sounds like they can only get them to offer a 12% discount. Do you have any thoughts on maybe if they would accept more or how you could get them to accept more?

Jeff (22:28):

So I think what you're asking is accept less, right? Less of a settlement. We're not trying to get them to take more, and it's really a case by case. Man, I'm a good lawyer. It always depends on everything. So it really depends on your financial situation. So if you're unemployed, right, or you're on social security or permanent disability, you have all the playing cards, right? I forget what that expression is, but you let them know that I've had debt settled. I mean decent debts around that amount settled for $200 because that's all my client had, and there was nothing that they could go get from my client. So the idea of this is called judgment proof, and it doesn't mean they can't get a judgment on you. What it means is that if they do get a judgment, there's no way to collect on it, meaning your income is protected, you don't have a house, they can go put a lien on anything like that.

If you're a nurse or a police officer or a teacher, they have really no motivation to give you a discount because they can just go garnish your wages with a judgment. So it depends. A lot of times firms like Stinger and Stinger, they have a set number that their client just won't let them go below. A lot of times if you provide financials, it helps showing that you're in this financial mess that you're in. Sometimes writing it helps because then they're, I mean, ethically, they're required to present that to their clients if it's in writing. So there are other ways to go about doing it. But as far as do I have experience with settling at 50% on those? No, I don't. I think very typically in the debt settlement space, you can get 80% when you're represented by an attorney. The one thing I would say is that, again, I know nothing about your situation, but if you're not far along in your case it sounds like you're engaged in the case, I would take a look at the credit card agreement and if there's an arbitration clause, I would go to the court and request that it get moved to arbitration.

And it gives you a little bit of some firepower in that for you to file as a consumer to file in the aaa, which is where all the arbitration agreements are, the form that they choose, it's only a couple hundred dollars, but it could be four to $8,000 for the bank to have to pay or Stinger Stinger to have their client to have to pay to do that. So that might give you more leverage since they know they're going to have to pay these fees to the aaa, it might give you more leverage to try to get a lower settlement, but you'd have to look at the credit card agreement. And if you're pretty far along in the case, I don't think the court's really going to allow you. I mean, they might. I would still request it no matter how far along you are.

Hannah (25:22):

I think another thing with arbitration too is just be careful to understand who would be responsible to pay the arbitration fees, because in some cases you might be responsible and it could end up costing more than just going through the regular court process. Correct me if I'm wrong, Jeff, way more about this than I do.

Jeff (25:40):

In the consumer rules for the American Arbitration Association, it's $200 or it might be 2 25. Now to file as a consumer to file it in the, it's thousands of dollars for the bank, for the credit card company, it's thousands of dollars. So it usually doesn't put you in. If you can afford the couple hundred dollars, it's worth it.

Hannah (26:02):

Okay, that's really good to know too. So it sounds like some banks would rather avoid arbitration and try to settle for less to avoid the costs of arbitration.

Jeff (26:13):

Yeah, I mean, right now it's taking a few months to even get an arbitrator assigned to your case, so it's going to give you more time to continue to negotiate with it. Arbitration has very little rules. There's no rules of, I mean, there's rules, but it's not like knowing your courts rules of civil procedure type of thing. So a lot more. So it's a good strategy if you can head over there, it might give you some leverage to get a lower settlement.

Hannah (26:37):

And it's less intimidating than maybe the regular court setting.

Jeff (26:40):

That's good. Oh my goodness. So much less intimidating. Yes. You're not going in front of judges you're going in front of, usually it's just attorneys.

Hannah (26:48):

Gotcha. And no jury.

Jeff (26:51):

Yeah, exactly.

Hannah (26:52):

Cool. Okay, so this question is from Javier. Javier says, Midland has a lawyer from Virgil suing me for an old credit card debt of $6,000. Should I settle? And for how much? So it sounds like Midland Credit Management is the one that's suing Javier and it's $6,000. Jeff, do you have any experience negotiating with Midland for around $6,000? What do you think would be a realistic offer?

Jeff (27:25):

For the most part, generally 80% over an extended period of time, somewhere between 12 and 36 months. But again, it's going to depend, right? So Midland has a different agreement. Well, their lawyer has a different agreement depending on what type of debt it is, depending on where they bought that debt from.

It depends on what state you're in. And again, if you have that arbitration agreement, that could really put you in a better negotiating power. If it's going to cost Midland $4,000 in costs, not even their attorney fees, just in costs to try to collect on that, you might have a bargaining chip there that you can use to try to get that settled out. And again, I want to go back to that previous answer. You really have to establish your financial situation. If you can't afford anything, if you're unemployed, if there's not a way for them to collect on that, then you're going to have a greater success at getting a lower settlement.

Hannah (28:25):

Gotcha. Yeah, I think there are a lot of ways that you can give yourself leverage in a case. I think one of them is, especially when you're dealing with debt buyers like Midland, is filing an answer. Because based on my experience, a lot of the time debt buyers will file lots of cases all at once and then try to get the default judgment. So if you even just file an answer that gives you leverage to try to negotiate, gives you time to figure out your next step. But yeah, I think that's really good advice or not advice, but really good insight. Don't expect to be settling for 50% of the debt amount. It sounds like, Jeff, in your experience, 80% is probably more realistic.

Jeff (29:06):

Unless there's other circumstances, unless you're really not collectible. But I agree with you, and I should have said that before, you have to file that answer. You have to get something out there so they don't just get a default judgment.

Hannah (29:16):

100%. Cool. Well, here's another question. So Jake says, in California, if there is no personal service, how long before a judge dismisses it? So it sounds like Jake got sued but was never personally served with the court documents, and he's asking how long before a judge will just dismiss the case? Any thoughts on that, Jeff?

Jeff (29:37):

So again, it's very specific to California state rules and laws. I believe in my Arizona knowledge, I believe in California, it's a year they have to serve you, and then the court will dismiss it for lack of prosecution. It doesn't mean that case goes away forever unless they're past the statute of limitations. But if they have time, all they have to do is just re-file that case and then serve you.

Hannah (30:02):

Great to know. But yeah, it sounds like double check on the state rules in California to be sure. We've got another question from Jonathan Schafer says, if your spouse loses to default judgment but is not the owner of a home, can they still attempt to put a lien on it?

Jeff (30:20):

So it depends on your state, right? If your state is community property state like California, absolutely. They still can't. If you're not community property, then it depends on when the debt was incurred. It depends on what it was incurred for. There's a lot of things that goes into that. But if it's like California and it's community property state, then yeah, your debt is your wife's debt and vice versa.

Hannah (30:47):

Gotcha. So it just depends on where you live, but look into what is it? It's specifically called community property.

Jeff (30:53):

Community property, yeah. Meaning your debts are shared amongst the marriage.

Hannah (30:58):

So yeah, if you're wondering about that, look it up in your state, what the community property sharing law is in your particular state.

Jeff (31:08):

The one thing I would suggest in that situation is if it hasn't been too long or there was a reason that it went to default judgment, go back to the court, ask for them to vacate it and explain to the court why they should.

Hannah (31:19):

And you can do that by filing a motion to vacate judgment. I think it's also called a motion to set aside judgment in some states. But basically what it does, and correct me if I'm wrong, Jeff, but it basically asks the judge to reverse the judgment and give you another chance to file an answer, engage in the lawsuit, defend yourself, et cetera.

Jeff (31:37):

Yeah, exactly. A good strategy on that is to look to see what was filed with the court to see what that proof of surface was. And if it's not accurate, then use that, right? Use that information to go back to the court and say, Hey, this was served on someone. We don't even know who it is. It wasn't served at our house, it was served. There's a lot of factors that go into it. There's a lot of junk service out there. So if you can attack that, you might have a decent chance at getting that default judgment set aside or vacated. Doesn't mean your case goes away, but at least now you don't have to worry about it immediately affecting your home.

Hannah (32:14):

Great. And I do want to say that at Solo, we can help you draft a motion to set aside judgment or a motion to vacate judgment, which you can then file into your case if you're dealing with a default judgment. Okay, perfect. We've got another question.

Robert, Debt Hotline Guest (32:28):

Hi there. My name's Robert Far A-R-I-C-K, and the question I have is I did get a letter from my local court that says, I do owe a debt for a PNC bank. There was no court date or anything. It just says you owe this. And so now I've got this confirmed letter, I guess from the court, and I just wondered what my options are from here. I'd still love to get a payment plan of some sort. Is it too late for that? I also have another credit card that has gone to collections, it looks like, and they offer me some concessions, but I wouldn't able to pay a reduced rate or a reduced amount. So now it's gone to collections and they're demanding the whole amount. Of course. I just wonder what my options are with that too. Can I still try to get a payment plan with them? It sounds like there's no interest anymore, which is good. So those are my two questions. Thank you. Bye.

Jeff (33:36):

So regarding the lawsuit, call your court, call the court tomorrow and say, what's the status of this? What can I do if it is a default judgment that you received? Again, same thing. This common theme we've had this whole conversation, right? Try to get a vacated, try to get it set aside, get engaged with the court and that attorney to set up a payment plan. Even if it has gone to default, you can set up a payment plan. So again, just make a phone call to that attorney, make a phone call to the court, find out what status it's in, just hearing that it's a letter from the court. There's a million things that could be depending on your state, depending on the court, stuff like that, and I would absolutely use that information for the new debt collector. Tell 'em, I've been sued. I have to pay this other debt. I don't have any money to pay you and negotiate a payment that you can afford. A lot of times if you're willing to pay back the full amount, you can get a really, really low monthly payment.

Hannah (34:40):

That's really good to know. If you're being sued and you have other debt collectors coming after you for other debts, you can use that as leverage to try to settle with the debt collectors that haven't taken you to court yet. And knowing that you're being sued and you have multiple debt accounts might help you have leverage to figure out a solution as far as settling goes. Very good to know. Jeff. I just want to say thank you so much for joining and for being a rep for Guardian Litigation Group. Is there any last words or tips, tricks, insights that you have with so many years of experience as a consumer rights attorney? Anything you'd like to say for anyone listening or watching?

Jeff (35:21):

Yes, so many things, but I'll keep it short first, the Fair Debt Collections Practices Act does not apply to the banks or the credit card companies. So there's really, unless you live in some specific states like California or Florida, there's really no laws to protect you from them. So if they're calling you five times a day, they're not violating the FDCPA because the FDCPA only applies to third party debt collectors. So just be aware of that. A lot of people get confused with it, and those payday loan companies, they're pretty aggressive. They'll even show up at your house and stuff like that. So it's unfortunate if your state doesn't have any loss to protect you from it. The other thing is be aware of scams. There are so many of them. There is never ever a reason that you have to pay something immediately over the phone. You will never get arrested. They will never take your house. Please do not do research on the matter. Get a phone number and call that company back. Ask them to send it to you in writing. Please do not do this frantic paying someone because they scared you. It is happening all the time. They're making millions of dollars from it. Do not be a victim to the scams.

Hannah (36:31):

Perfect. Well, thanks again, Jeff for joining. Thanks for your insights. Great answers to some tricky questions, and thanks for everyone tuning in and listening to the Debt hotline. Again, I just want to invite anyone listening who has questions about debt. To submit your questions to the debt hotline, you can call us at (801) 613-8181. Leave a voicemail. We respond to those voicemails weekly. And if you have been sued for debt and you're looking for legal representation, you can use Guardian Litigation Group to find legal representation and help you settle your debts and navigate the court process. Again, their website is guardianlit.com, that's guardianlit.com. So great resource there. And then lastly, if you have been sued for debt and you're just trying to figure out how to file a response, maybe try to do it on your own. You can also use solosuit.com to do that.

So at Solo, we can help you respond to a lawsuit, represent yourself. We can also help you negotiate with creditors, collectors, and law firms to settle your debt outside of the court process. So check out all those resources. Know that there are lawyers, there are organizations out there. Each state has free legal aid to help people navigate the court process. You're not alone in this. And of course, you've got the debt hotline as a great resource to help navigate the process and ask your questions and get real answers. So thanks again, Jeff. We really appreciate you joining. This was the Debt Hotline.

Disclaimer: The information presented in this podcast is intended strictly for general informational purposes and should not be construed as legal, financial, or investment advice. Solo and its hosts are not licensed attorneys, financial advisors, or other certified professionals. While select guests may hold active professional licenses, their contributions are purely for educational informatic discussion. They're not delivering professional or personalized advice. Solo is not a law firm, does not offer legal representation and must not be relied upon as a substitute for professional legal counsel. It is also not engaged in debt, settlement, credit repair, or financial counseling services. Solo provides self-directed software tools designed to support users in navigating their own legal and financial situations. Participation in this podcast is not establish an attorney-client relationship. Listeners are encouraged to consult with attorneys or licensed professionals for guidance specific to their circumstances. The opinions expressed by podcast participants are their own and do not necessarily reflect the views or official positions of SoloSuit Inc. Doing business as solo or any affiliated organizations.

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Texas
• Utah
• Vermont; Vermont (Small Claims court)
• Virginia
• Washington
• West Virginia
• Wisconsin
• Wyoming

Guides on how to resolve debt with every debt collector

Are you being sued by a debt collector? We’re making guides on how to resolve debt with each one.

• 11 Charter Communications
• AAA Collections
• Aargon Agency Inc
• Absolute Resolutions Investments LLC
• ACEI Collections
• Account Services
• Accredited Collection Services
• Accredited Collection Services
• Advanced Recovery Systems
• AES NCT
• AFNI Collections
• Alco Capital Group LLC
• Aldous and Associates
• Alliance Collections
• Alliance One
• Alliant Capital Management
• Alpha Recovery Corp
• Alltran Financial
• Alltran Health
• Alorica Inc.
• Amcol Clmbia in Court
• American Coradius International
• American Profit Recovery
• American Recovery Service
• Americollect
• AmSher Collection Services
• Apelles LLC
• AR Resources
• ARC Collections
• ARM Solutions
• Arrow Financial Services
• ARS National Services
• ARSC Debt Collectors
• ARS National Services
• ARstrat
• AscensionPoint Recovery Services
• Asset Acceptance LLC
• Asset Recovery Solutions
• Associated Credit Services
• Atlantic Credit and Finance
• Atradius Collections
• Automated Collection Services, Inc.
• Autovest LLC
• Avante USA
• Avantus
• AWA Collections
• Balekian Hayes
• Bay Area Receivables
• BCA Financial Services
• BC Services
• Benuck and Rainey
• Berlin-Wheeler
• Bluebonnet Financial LLC
• Bonneville Collections
• Bull City Financial
• Bureaus Investment Group
• Cach LLC
• Caine and Weiner
• Capio Partners
• Capital Accounts
• Capital Collections
• Capital Management Services
• CardWorks
• Carmel Financial/New Coast Direct
• Cavalry SPV I LLC
• CBCInnovis
• CBCS Collections
• CBE Group
• CBV Collections
• CCB Credit Services
• CCS Collections
• CCS Offices
• Central Mediation Services
• Central Portfolio Control
• Cerastes LLC
• Choice Recovery
• Choice Recovery Inc
• CKS Financial
• CKMS Financial
• Client Services
• CMRE Financial Services
• COAF
• Coast Professional
• Comenity Bank Debt Collection
• Commonwealth Financial
• ConServe Debt Collection
• Consumer Collection Management
• Contract Callers Inc
• Convergent Healthcare Recoveries
• Convergent Outsourcing
• Couch Conville & Blitt
• Covington Credit
• CRDT First
• Credco in Court
• Credence Resource Management
• Credit Bureau Systems
• Credit Control Corporation
• Credit Management Company
• Credit Management LP
• Credit Systems
• Credit Systems
• CSIEZPay
• CTC Debt Collector
• CVCS Debt Collection
• Cypress Financial Recoveries
• D&A Services
• Daniels, Norelli, Cecere & Tavel P.C.
• DCM Services
• Debt Recovery Solutions
• Delanor Kemper & Associates
• Department Stores National Bank
• Direct Recovery Associates
• Discover Collections
• Diversified Adjustment
• Diversified Consultants
• Diversified Recovery Bureau
• DNF Associates, LLC
• Dodeka LLC
• DRS Credit
• Dynamic Collectors
• Eagle Loan
• Eagle Accounts Group, Inc.
• Eastern Account System
• EduCap
• Ellington and Associates Collections
• Encore Capital Group
• Enerson Law
• Enerson Law LLC
• Enhanced Recovery Company
• EOS CCA
• ERC Collections
• ERSolutions
• Estate Information Services
• Equable Ascent Financial
• Everest Business Funding
• Executive Credit Management
• Faber and Brand
• Factual Data
• Falls Collection Service
• FBCS
• FCO Collections and Outsourcing
• FIA Card Services
• fin rec svc (Financial Recovery Services)
• First Federal Credit Credit Control
• First Financial Bank
• First Portfolio Ventures LLC
• First Progress
• FirstPoint Collection Resources
• Firstsource Advantage
• FMA Alliance
• FNB Omaha
• Forster & Garbus
• Franklin Collection Services
• Freedom Plus
• Freshview Solutions
• Frontline Asset
• Frost Arnett
• Fulton Friedman & Gullace LLP
• Galaxy International Purchasing, LLC
• GC Debt Collection
• GC Services
• General Revenue Corporation
• GLA Collections
• Glass Mountain Capital
• Glasser and Glasser
• Global Credit Collection Corp
• Global Trust Management
• GMAC Financing
• Golden 1 Credit Union
• Grant and Weber
• Grant Mercantile Agency
• Gulf Coast Collection Bureau
• Gurstel
• Halsted Financial Services
• Harris and Harris
• Harvard Collection
• Harvest Credit Management
• Helvey and Associates
• Hollis Cobb
• Holloway Moxley
• Hosto Buchan
• Howard Lee Schiff
• H&R Accounts
• HRRG
• Hudson & Keyse LLC?
• Hunter Warfield
• IC System
• Impact Receivables Management
• Innovative Recovery
• Integras Capital Recovery LLC
• Javitch Block
• JHPDE Finance 1 LLC
• JP Receivables Management Partners
• JPMCB card
• Kenneth Eisen and Associates
• KeyBank student loans
• Kinum
• Kirschenbaum, Phillips & Levy P.C.
• KLS Financial Services
• Kramer & Frank
• Lakeside Collection
• Lending Club
• Lincoln and Morgan Kabbage
• Linebarger Goggan Blair & Sampson LLP
• Lockhart Collection Agency
• LJ Ross Associates
• LTD Collections
• Malcolm S. Gerald and Associates
• Malen & Associates
• Mandarich Law Group
• Mannbracken
• Marcam Associates
• MARS Inc. Collections
• MBA Law
• MCA Management Company
• McCarthy, Burgess & Wolff
• Meade & Associates
• Medicredit
• Mercantile Adjustment Bureau
• Merchants Credit Association
• MGM Collections
• Michael J Adams PC
• Midland Funding LLC
• Mid-South Adjustment
• Monarch Recovery
• Monterey Financial
• Moss Law Firm
• Mountain Land Collections
• MRS Associates
• MRS BPO
• MSW Capital LLC
• Mullooly, Jeffrey, Rooney & Flynn
• Nathan and Nathan PC
• National Collegiate Trust
• National Credit Adjusters
• National Credit Care
• National Credit Systems
• National Enterprise Systems
• National Recovery Agency
• National Recovery Solutions
• Nationstar
• Nationwide Credit
• Nationwide Recovery Services
• Nationwide Recovery Systems
• NCEP LLC
• NCO Financial Systems Incorporated
• North American Recovery
• Northland Group
• Northstar Capital Acquisition
• Northstar Location Services
• NPAS
• NRC Collection Agency
• Oliver Adjustment Company
• Oliphant Financial, LLC
• Oportun
• P&B Capital Group
• PCB Collections Agency
• Palisades Collection LLC
• Pallida LLC
• Paragon Contracting Services
• Paragon Revenue Group
• Payday Loan Debt Collectors
• Pendrick Capital Partners
• Penn Credit
• Perdue Brandon
• Persolve LLC
• Phillips & Cohen Associates
• Phoenix Financial Services
• Pioneer Credit Recovery
• PMAB LLC
• PRA Group, Inc.
• Pressler, Felt & Warshaw LLP
• Prestige Services, Inc.
• Prince Parker and Associates
• ProCollect
• Professional Finance Company
• Progressive Management Systems
• Provest Law
• PYOD LLC
• Quaternary Collection Agency
• RAB Collection Agency
• Rash Curtis and Associates
• Radius Global SOL
• Radius Global Solutions
• Rawlings Company
• Razor Capital
• Real Time Resolutions
• Receivables Performance Management
• Regents and Associates
• Reliant Capital Solutions
• RentGrow
• Resurgent
• Resurgent Capital Services and LVNV Funding
• Revco Solutions
• Revenue Enterprises LLC
• Revenue Group
• RGS Financial, Inc.
• RMP LLC in Court
• RMP Services
• RS Clark and Associates
• RSIEH
• RSIEH
• RTR Financial Services
• Rubin & Rothman
• Salander Enterprises LLC
• Samara Portfolio Management
• SCA Collections
• Scott Parnell and Associates
• Second Round Collections
• Second Round Sub LLC
• Selip & Stylianou LLP
• Sequium Asset Solutions
• Sessoms and Rogers
• Sherman Acquisition
• Sherman Financial Group
• SIMM Associates
• Source Receivables Management
• Southern Management Systems
• Southwest Credit Group
• Spire Recovery Solutions
• SRS Company
• Stark Collection Agency
• State Collection Service
• Stenger and Stenger
• Stillman Law Office
• Summit Account Resolution
• Sunrise Credit Services
• Superlative RM Debt Collector
• Suttell and Hammer
• Synergetic Communication
• Synerprise Consulting
• The Law Office of Michael J Scott
• Trellis Company
• Troy Capital
• TRS Recovery Services
• TrueAccord
• Tulsa Teachers Credit Union
• UCB Collection
• UHG 1, LLC
• Unifin
• Unifin Debt Collector
• Unifund
• Universal Credit Services
• US Bank Collections
• USAA collections
• USCB America
• Valentine and Kebartas
• Valley Servicing
• Vance & Huffman LLC
• Van Ru Credit Corporation
• Velo Law Office
• Velocity Investments
• Viking Client Services
• Wakefield and Associates
• Waypoint Resource Group
• WCTCB
• Weinberg and Associates
• Weltman, Weinberg & Reis
• Westwood Funding
• Williams and Fudge
• Wilshire Consumer Credit
• Wolpoff & Abramson
• Worldwide Asset Purchasing
• www.AutomotiveCredit.com
• Zarzaur & Schwartz
• Zwicker & Associates

Resolve your debt with your creditor

Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.

• American Express; American Express – Debt Collection
• Bank of America
• Barclay
• Best Buy Credit Card
• Capital One
• Chase
• Credit One Bank
• Old Navy Credit Card
• PayPal Synchrony Card
• Regional Finance
• Retailers National Bank
• Reunion Student Loan Finance Corporation
• SYNCB/PPEXTR
• Synchrony Bank
• Synchrony Walmart Card
• Target National Bank
• Webbank
• Wells Fargo
• Can I Pay My Original Creditor Instead of a Debt Collection Agency?
• Can I Settle a Debt with the Original Creditor?

Settle your medical debt

Having a health challenge is stressful, but dealing medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

• Am I Responsible for My Spouse's Medical Debt?
• Do I Need a Lawyer for Medical Bills?
• Do I Need a Lawyer to Fight Medical Bill Debt?
• Does Bankruptcy Clear Medical Debt?
• How Much Do Collection Agencies Pay for Medical Debt?
• How to Find Medical Debt Forgiveness Programs
• Is There a Statute of Limitations on Medical Bills?
• Medical Debt Statute of Limitations by State
• Summoned to Court for Medical Bills — What Do I Do?
• Summoned to Court for Medical Bills? What to Do Next

Guides on arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

• How Arbitration Works
• How to Find an Arbitration Clause in Your Credit Agreement
• How to Make a Motion to Compel Arbitration
• How to Make a Motion to Compel Arbitration in Florida
• How to Make a Motion to Compel Arbitration Without an Attorney
• How Credit Card Arbitration Works
• Motion to Compel Arbitration in California
• Sample Motion to Compel Arbitration

Stop calls from debt collectors

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

• 1-800-390-7584
• 800-289-8004
• 800-955-6600
• 8009556600
• 877-366-0169
• 877-591-0747
• 800-278-2420
• 800-604-0064
• 800-846-6406
• 877-317-0948
• 888-899-4332
• 888-912-7925
• 202-367-9070
• 502-267-7522

Federal debt collection laws can protect you

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

• 15 USC 1692 Explained
• Does the Fair Credit Reporting Act Work in Florida?
• FDCPA Violations List
• How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)
• How to Make a Fair Debt Collection Practices Act Demand Letter
• How to Submit a Transunion Dispute
• How to Submit an Equifax Dispute
• How to Submit an Experian Dispute
• What Debt Collectors Cannot Do — FDCPA Explained
• What Does Account Information Disputed by Consumer Meets FCRA Requirements Mean?
• What does “meets FCRA requirements” mean?
• What does FCRA stand for?
• What is the Consumer Credit Protection Act