Portfolio Recovery Associates may not be recognized as one of your creditors. Portfolio Recovery Associates is not a lender or a bank. Portfolio Recovery Associates is a debt-buying firm that purchases charged-off accounts from various creditors. The original creditor may have stopped paying the loan terms and charged you off. This makes your account a bad debt. This does not mean you are not responsible for the remaining amount.
Portfolio Recovery Associates will purchase your debt for less than what it is owed, and then sue you to recover the full amount due along with any fees or interest. Portfolio Recovery Associates may attempt to collect your debt by sending letters or calling you. It is important to understand your rights when debt collectors chase you to collect money. Here are some key points to remember during the Portfolio Recovery lawsuit.
Respond to the portfolio recovery lawsuit
One of the most common mistakes consumers make when they are sued by credit card companies or collection agencies is to ignore the lawsuit and hope that the creditor will forget. This is a common mistake, and it happens very rarely if ever. It would be difficult to forget to get the money once they have spent the time and money to file a lawsuit against your.
Portfolio Recovery Associates may sue you and send you a Summons and Complaint. The document will contain a deadline by which you must respond to the court. The judge will automatically determine that the debt is yours if you ignore the date and the entire court process. Portfolio Recovery Associates will then be allowed to enter a default judgement against you. They can proceed with the collection process of the money they are suing.
Hire someone to help you
There are many people, such as lawyers, who will help you with your debt. However, they may charge you a lot of money and do absolutely nothing for you. There are companies that specialize in debt settlement. They will look at your credit reports to try and sell you. They will want to discuss your entire financial situation, despite the fact you reached out for help because they believe that one problem is more important than others. That is because you were sued.
Talking to someone who is knowledgeable in this area can save you time. Click here to find an experienced attorney who will help you with the portfolio recovery lawsuit.
Don’t miss the deadline
You must file your answer within 30 days of being notified about the Portfolio Recovery lawsuit. Portfolio Recovery is not going to allow you to delay responding. Portfolio Recovery Associates may file a default judgement against you if you do not respond in a timely manner. Portfolio Recovery Associates will be allowed to take a judgment against your for the entire amount claimed if you do not respond within the deadline. Portfolio Recovery Associates could ask for a judgement against you if you fail to respond within the 30 day deadline.
Even though there is a later court date already scheduled. Portfolio Recovery Associates may be awarded an undeserved victory despite you being properly represented. This is a great reason to hire an attorney to represent you. A good lawyer will effectively protect your right of objecting if necessary.
Never give them more information than they ask for
It is common for consumers to panic during the portfolio recovery lawsuit and give too much information about their finances, and more than the court requests. This is not the way to handle the disclosure period in a portfolio recovery lawsuit. You are not allowed to give them more information than they request. Also, you should ensure that the documents they request are completely justified by the facts of the case. You should consult an attorney before you give any information.
Ask the creditor or collection agency for verification of the amount
Even if you believe it to be accurate, don’t rush to confirm your owing amount. It is possible to assume that a Portfolio Recovery lawsuit has been filed. They must then have the documents to prove this. They probably assume that you won’t ask for it. There could be a good reason you do it. They are limited in the things they can do if they cannot afford to collect the amount they desire. The Portfolio Recovery lawsuit will then be dismissed or settled. It is worth asking questions.
You should pay attention to your debt if you have been served with the Portfolio Recovery lawsuit. You should not expect it to disappear or that the lawsuit will be dismissed because you don’t have any assets. A lawyer representing you is far more likely to negotiate a better deal that will result in you paying less than what you owe. A lawyer can also review all your information to make sure you are not paying any debts you don’t owe.