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Is there a point in sueing for FDCPA when you owe 10k

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Is there a point in sueing for FDCPA violation when you owe 10k?

It depends (see below).

Won't the CA just counter sue for the 10k and win a judgment?

Maybe....maybe not. Nobody just..."wins a judgment". If a CA or their attorney sues they have to present the court with legitimate proof that the debt is yours. If they don't have the proof, they don't just waltz into court and "win a judgement."

There really are alot of variables to your question. For example: even though the statutory fine for FDCPA violations is up to $1,000, you could have actual damages worth alot more (such as damages from the loss of a job). In addition, you may sue for your attorney fees. While all these items may still not add up to $10K (and keep in mind its the court and not you that determines the amount of any award) - it may still be worth it under the following scenario:

Let's suppose that the CA's attorney violated FDCPA also. If they did, you can also sue him or her personally in addition to the CA. I know from my own experience that this can be the straw that breaks the camel's back, so to speak. I don't know of many attorney's that want to risk having FDCPA violations on their record for professional as well as insurance purposes.

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Thanks, I didn't even think that angle

"I don't know of many attorney's that want to risk having FDCPA violations on their record for professional as well as insurance purposes."

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Something along the same lines, if the CA only has a thousand invested in the debt (paying at most 10%) why risk.

Just get what you can & run. There are too many other fish in the sea.

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Thanks, I didn't even think that angle"

Actually this "angle" works wonders when you're counter-claiming in a suit brought on by CA-plaintiff.

There is no really easy general-purpose answer to your question. But you make an excellent point: the face value of the debt is usually alot higher than what a CA scavenger paid for it.

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CA's work under the direction of their clients and receive a percentage of what they collect. Debt buyers are investors who acquire portfolios for as little as three cents on the dollar then contract with collection agencies to collect the entire amount owed plus substantial penalties! Debt buyers can sue and often do however, they will not usually be able to validate the debt in court. Most debt buyers ultimately win on default because most people do not show up in court to defend themselves. In fact many do not even answer the summons! As to suing debt collectors for violations, it seldom happens because most people aren't willing to pursue all the steps necessary to go through the motions and front costs to lawyers only to risk losing in the end. Bill collectors don't care about complaints, as it's all in a days work.

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8)

Is there any argument that if CA fails to validate they can't pursue collection in court?

busted

The way I understand this is that if they have not already filed suit when you request validation, they are barred from doing so until they validate. You might want to ask this question in the Lawyer section.

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The way it was explained to me is that they can still file the paperwork and get a case number, to lock it in, but, cannot take it to court until debt is valdiated. There are also those who file and go to court anyway in hopes you don't show up or don't use the violation as a defense. One thing to remember is if you go to Small Claims, you are facing a "Wannabe Judge". Few Magistrates have any idea of what the word "law" means. They usually go through a short class on how to be a Judge, then are put in a Courtroom. In short, they ask you if the debt is yours and you say "Yes, But", down goes the Gavel in favor of the CA.

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Judgments are awarded all the time on debt that has not be validated. In fact, Discover Bank has prevailed on a number of consumers in the Delaware courts even after they have ignored validation requests. All that a creditor must do in most cases is present reasonable proof the debt is valid and the debtor loses. Most often debtors don't answer interrogatories let alone not show up in court so it becomes a slam dunk and that's what creditors and lawyers count on.

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