Advanced Recovery Systems Collection Lawsuit: 6 Rights You Still Have

Getting sued by a collection agency like Advanced Recovery Systems feels like the end of the road, but it is not. You still have rights, and collection agencies still have responsibilities. If they violate your rights or those responsibilities, you can fight back. You do not have to be their victim. In short, you have the right to not be harassed, the right to be informed, and the right to dispute your debt. Your rights under the Fair Debt Collection Practices Act are rights belonging to consumers, not companies.

1. Answer the lawsuit

Your first step is to answer the summons and complaint as instructed on the summons. You must not ignore it. If you do not answer a lawsuit, it can result in a default judgment against you. This in turn can result in your wages being garnished, your bank account levied, or even in a lien being placed on your property, depending on state law. You have rights you can use to dispute the debt, but those rights only matter if you have not defaulted by not responding. In Mississippi, you have 30 days from the date you are served to respond to the summons. Answering a summons does not mean admitting fault, and it does not mean admitting the debt. It only means that you intend to defend yourself against the charges, and because you have responded, the collection agency is obligated to provide you with proof of your debt.

2. Check whether the debt is personal

The FDCPA only applies to personal debt. Business debts are not personal debts, and are therefore generally not covered by the FDCPA. The fact that you are a sole proprietor does not mean that you do not have a personal debt. In practice, this usually means determining the source of the debt, whether it was a loan for personal use, or a loan for the use of the business. For business debt, there are two parties who are knowledgeable about business operations, and who are able to make decisions in the best interests of their businesses. Their relationship is mutually professional, and there is less of a need to protect vulnerable parties. For a consumer debt, however, there is a professional who has experience in making financial decisions, and a consumer, who has relatively little experience in that area, and therefore is more vulnerable. The protections of the FDCPA are there to help equalize that difference.

3. Demand validation of the debt

If the debt is personal, you should verify that it is valid. It is not enough for them to say that you owe the debt. The FDCPA requires that a collector provide you with validation of the debt within 5 days of first contact. You have the right to demand verification that you actually owe the debt in question. Under the FDCPA, you must send this request in writing within 30 days of receiving notice of the debt. A timely written dispute will stop all collection efforts until the debt can be verified. Missing the deadline is not a tacit admission of the debt.

4. Check the statute of limitations

After validation, you should verify that the time limit has not passed. This is because a debt that has passed the statute of limitations is time-barred. Because of the statute of limitations, debt collectors have only a limited time in which they can take legal action. Even if the debt is yours, if they sue or threaten to sue on it after the statute of limitations has passed, they are in violation of your rights. Mississippi has a three-year statute of limitations for open accounts.

5. Protect your paycheck

Because a default judgment can result in garnishment of your wages, you need to protect your paycheck. Federal wage garnishment law excludes 30 times the federal hourly minimum wage per week from garnishment. That is $217.50 per week, meaning that $217.50 of your wages is exempt from garnishment. Only 25% of your disposable income may be garnished.

6. Sue them if they break the law

If the debt collector has violated your rights in any way, you can sue them to recover your actual damages, statutory damages, and legal fees. For example, some collection agencies call consumers repeatedly. A debt collector must stop calling if you write them a letter asking them to stop. If you do ask them to stop calling, and they continue to call you, they have violated the law. A debt collector is not allowed to call you more than seven times over a 7-day period. When collecting, a debt collector is not allowed to falsely represent themselves. They must identify themselves and the company they work for when they call.

The FDCPA provides for collection of up to $1,000 in statutory damages from the debt collector in a successful lawsuit. You can collect actual damages, which can include lost wages, medical bills, damages that resulted from illegal calls to you, and other related expenses. The collection agency must pay your legal fees if you hire a lawyer and successfully sue. For an FDCPA claim, the statute of limitations is one year from when the violation occurred.

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