Being served with a lawsuit for an old debt can be unpleasant and sometimes downright scary. Don't give up! You may very well have options to resolve the matter, so it's important that you take steps to protect yourself from a judgment. If you delay in taking action in a timely manner, the creditor can seek to enter a default judgment against you for the full balance. When this happens, the company has the right to recover funds by seizing bank accounts or having your employer garnish wages. Furthermore, additional interest and marshal fees can cause the judgment balance to further increase. Simply put, the sooner you take action, the better of a position you'll be in to obtain a favorable resolution.
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Why is Unifund CCR llc suing me?
There's a good chance that you don't recognize Unifund CCR llc as one of your creditors. This is because Unifund is not a bank or an issuer of credit. Rather, they are a company that purchases charged-off accounts from various creditors. It buys the defaulted debt for much less than what is owed and then goes after the borrower to recover the full balance.
Before they bring a lawsuit, they may try to collect the debt by calling you or sending letters. They may even hire an outside collection agency. Collection communications are subject to federal consumer laws, and if your rights are violated, you may be entitled up to $1000 in statutory damages plus actual damages. Contact our consumer rights lawyers for a free review to determine whether you have a claim.
When bringing lawsuits in New York, Unifund CCR will often retain the law firm of Mullooly, Jeffrey, Rooney, & Flynn LLP. They focus primarily on consumer debt collection and have handled hundreds of cases for Unifund over the years.
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Defending Lawsuits from Unifund CCR llc
When Unifund brings a lawsuit, they are hoping that the borrower fails to assert an adequate and timely response. If you do not answer the lawsuit, Unifund may be oble to obtain a default judgment. A judgment is a public record, it can appear on your credit report, and can be collected for 20-years, with 9% interest each year. It's best to take all reasonable measures to avoid having a judgment entered against yourself.
Since Unifund CCR llc is a buyer of debt, you may have defenses that aren't typically available in lawsuits from original creditors. By interposing your answer properly, and serving discovery demands, you can raise Unifund's burden of proving their case.
When a debt buyer, such as Unifund, purchases a charged-off account, it usually gets only a small amount of details about the account holder, which means there may be various ways you could challenge the company’s claim that you owe on the defaulted loan.
In these types of cases, you want to make sure that Unifund can substantiate the chain of custody of the debt, from the original creditor, through any intermediaries, and finally to Unifund. You will also want evidence proving that you actually owe the amount of debt that is being claimed. Defenses to such actions may include:
Possible lawsuit defenses include:
- Unifund does not have the right to sue
- Unifund cannot prove the stated amount is owed
- Unifund does not have sufficient records for the debt
- Statute of Limitations has passed (in New York, a creditor or collection agency has 6 years to pursue a debt lawsuit)
- The alleged debt was previously satisfied
- And many more...
Depending on the circumstances, you may also be in a position to include any counterclaims in your answer. This can include claims for breach of contract, violations of your consumer rights, and other causes of actoin.
Resolving Lawsuits from Unifund CCR llc
If you receive notice that Unifund is suing you, it is best to respond to and challenge the suit with the help of a skilled debt relief attorney. By contesting the lawsuit, you force Unifund to pool together extra resources to prove their case, as the burden of proof rests on the company. Additionally, fighting the lawsuit may result in a lower settlement amount or a dismissal of the case. Even in cases where Unifund is able to propound evidence in support of their claim, a settlement for a substantially reduced amount may still be possible.
Schedule a Free Initial Consultation with the Law Office of Simon Goldenberg, PLLC
If Unifund has filed a lawsuit against you, contact our law firm for the legal representation you deserve. We advocate zealously on behalf of our client's and leave no stone unturned in achieving an equitable resolution. Let us assess your particular situation to work toward a favorable outcome for you.
For help fighting a debt lawsuit, call us at (888) 301-0584 or contact us online.
*Disclaimer: We offer legal assistance only on matters in New York and New Jersey