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Are debt collectors allowed to sue you?

One common tactic debt collectors employ is to threaten to sue the debtor unless the debt is paid. Most people in the U.S. are terrified of a lawsuit, and they will do almost anything to make that possibility go away. However, it may be illegal for the debt collector to threaten you with a lawsuit. Under the Fair Debt Collection Practices Act, bill collectors cannot lie to you. If they do, they can be sued and may have to pay the debtor’s attorney’s fees as well as a fine.

If you haven’t paid a debt, you can be sued and a judgment may be granted against you in court. However, if a debt collector has no intention of suing you, the collector cannot say the company will sue you. The company will not sue you if the debt is illegitimate, or if they don’t intend to sue you. For example, if you owe a company $200, and a debt collector threatens to sue you, that is probably a false statement under the FDCPA – virtually no debt collector would file a lawsuit over $200. Also, if you don’t owe the money and a collector threatens to sue, the collector is violating the FDCPA.

In Texas recently, a woman filed a lawsuit against a debt collector who threatened to sue her and called her a “deadbeat”. The woman repeatedly requested written validation of the debt, and the collector refused. The collector is currently being sued for several violations of the FDCPA, one of which is lying with the threat to sue.

If you been threatened by a debt collector please give my office a call at (877) 449-8898