A debt collector can take you to court over monies owed at any time. For the most part, collection agencies won’t bring forth a lawsuit unless they are sure the case can be won. You might end up receiving a summons letter with a court date one day though. It’s difficult to fight the debt if you do owe it, but you can still fight the agency in other ways. For instance, you can countersue a debt collector that broke the law or harassed you. Here are some reasons to countersue a collection agency.
1. The agency harassed you in some way.
If a debt collector harassed you in any way, then you are eligible for damages. No, you won’t get rich by suing the business for harassment, but you can win a judgment in many cases. According to the Fair Debt Collection Practices Act, a debt collector cannot harass or intimidate debtors or it is in direct violation of the law. You can report such breaches of the law and FDCPA by contacting various government agencies. On top of that, you could seek damages in court – typically small claims.
2. You issued a cease and desist letter, but communications persisted.
Issuing a cease communications letter to a debt collection agency bars anyone from contacting you. Of course, you can still receive a letter stating that your decree was received or a summons letter for a court hearing. Any business that continues to contact you otherwise is liable for damages to some extent. That means you can countersue the agency for violating your rights under the FDCPA. In most cases, you will want to bring forth a suit for this type of situation.
3. Other individuals are informed of the debt you owe.
Collection agencies cannot tell anyone else about your debt aside from the credit bureaus. In that vein, a company that tells your friends, family members, or employer about the debt is violating your rights. You are entitled to your privacy under the Fair Debt Collection Practices Act, so you can sue for a breach of that right. Collectors can’t even mention debts if they contact anyone that knows you to get your contact information. Without a doubt, you should countersue the business because you deserve to keep your privacy.
4. An agency gets you fired from your job.
Once again, a collection company cannot tell your employer about the debt you owe. That also means that the business cannot get you fired from your job, which has happened in the past for some individuals. Your right to privacy means that a collector can’t try to convince your employer to fire you or tell the employer any lies to get you booted from your position. Obviously, you should countersue the agency and then sue your employer if this happens.
5. A false lawsuit is brought up against you.
Lawsuits can be brought against you that are unmerited. For instance, a collector might sue you for a debt that you already settled or paid off. In that case, you can feasibly countersue for harassment or some other similar charge. An agency can’t just sue you after payment arrangements or some other deal has been made. Also, you can bring forth a counterclaim if the agency is trying to sue you after you provided it with firm evidence that the debt was paid off. It is possible to win a counterclaim in this situation.
You won’t get the original case canceled, but you can bring the fight to the collector!
Only under certain circumstances will a counter lawsuit against the company result in the original suit being dropped or the debt canceled. Still, you can lessen the blow of your debt by fighting the collector in court over another manner. A company that harassed you might drop the case or you might win a judgment that can help you pay for the original suit. Undoubtedly, you shouldn’t just countersue a collection company for no reason, but it is a smart option in some cases.
For more information, visit Collection Agency FAQ.
