Dealing with creditors, collectors and collection lawsuits
Medical bills, credit cards and personal loans can pile up after a job loss, an illness or a slow season. Once accounts go to collection, the calls start, and a lawsuit may follow. Usher Law Group helps individuals respond to collection lawsuits, stop unlawful collection conduct and look for a workable way to resolve what they owe.
Where we can help
- Collection lawsuits. Defending suits brought by creditors and debt buyers, and handling default judgments, bank restraints and wage garnishment.
- Consumer rights claims. Billing errors, deceptive practices, credit reporting problems and unlawful collection tactics.
- Negotiation. Settlements or payment plans with creditors when that is the most practical path.
- Bankruptcy. When debts cannot realistically be repaid, Chapter 7 or Chapter 13 may be an option. Our bankruptcy page explains both.
Signs of unlawful collection conduct
The federal Fair Debt Collection Practices Act (FDCPA) sets rules for third-party debt collectors collecting personal, family or household debts. New York and New Jersey law add their own protections. Warning signs include:
- Repeated calls at inconvenient hours or at work after you asked them to stop
- Threats, abusive language or threats of arrest
- False statements about how much you owe or what will happen if you do not pay
- Attempts to collect a debt you do not owe, or one that is too old to sue on
- Contact after you asked in writing that communication stop, beyond what the law allows
- Telling your family, neighbors or employer about your debt
What we do
- Communicate with the collector or creditor for you
- Send written demands to stop unlawful contact and to verify the debt
- Review the collector's conduct under federal and state law
- Help file complaints with regulators, or bring a claim in court where the facts support one
- Negotiate a settlement or payment plan that fits your budget
- Defend you if you are sued
What to do now
- Keep every letter, text and voicemail from collectors, and write down the date and content of each call.
- Do not ignore court papers. If you have been served, note the date and contact a lawyer right away.
- Do not admit the debt or agree to a payment on the phone before you know who is calling and what they can prove.
- Pull your credit reports and list your debts, balances and the last payment dates.
You can also submit a complaint about a collector to the Consumer Financial Protection Bureau. We work with clients in English, Russian and Spanish.
Frequently asked questions
Does the FDCPA apply to the original creditor?
Generally no. The federal FDCPA mainly covers third-party debt collectors and debt buyers collecting personal debts. Some state laws reach further, so the conduct of an original creditor may still be worth reviewing.
Can a collector call me at work?
Under the FDCPA, a debt collector generally may not contact you at work if it knows or has reason to know your employer does not allow such calls. Tell the collector in writing if you do not want calls at work.
Should I file for bankruptcy or try to settle?
It depends on your income, assets, the amount and type of debt, and whether you have been sued. Settlement can work for a few manageable debts. Bankruptcy may make more sense when debts cannot realistically be repaid. See our bankruptcy page for an overview of Chapter 7 and Chapter 13.
What if the debt is very old?
Old debts may be too old to sue on. In New York, many consumer credit debts must be sued on within three years. If you are contacted or sued on an old debt, have a lawyer check the dates before you make any payment.