Consumer Law

Why We Don't Recommend Filing Counterclaims In Debt Buyer Suits

By M. Stan Herring

We will expand on this on our website but we have noticed a number of Alabama consumers who have filed counterclaims when sued by a debt buyer. We generally do not do this for several reasons.

First, it can complicate an otherwise simple case. The debt buyer sued you. The debt buyer must prove you owe money to the debt buyer. We have not seen this happen. It is simple. Counterclaims can become messy and distracting.

Second, we have never seen a debt buyer or collection law firm give up just because someone has filed a counterclaim. So the reason many on the internet advise to file counterclaims - to scare the collector - is simply not valid.

Finally, if you have a legitimate claim, file it in federal court. Don't file it in district court or small claims court unless the value is $10,000 or under. If, for example, you are the victim of identity theft and the debt buyer sues you anyway and won't dismiss the case with prejudice, you likely have a potential case against the debt buyer. File that good case in federal court. If a claim is worth filing and pursuing, then almost always it is better to do that in a separate lawsuit.

If you have more questions, feel free to call us at 205-879-2447 or fill out the request form below to get a copy of our free report on the secrets that debt buyers don't want you to know about when they sue you. This report exposes a number of things that debt buyers are counting on you not knowing - so educate yourself so you can make the best possible decision on how to handle a debt buyer lawsuit.

Full post as published by Alabama Consumer Blog on April 02, 2009 (boomark / email).