How to Sue Creditors and Win Without a Lawyer

Instructions:

Most creditors DO NOT abide by the laws set by the Fair Credit Act and if they do you can still sue them. Some actions of a creditor that substantiate a law suit are: failure to validate a debt; calls you at work or very late at night; erroneous reporting of your credit history; and, refusing to note partial payments on your credit. Most of the time the creditors don’t bother showing up, and why would they? If the debt is for $1,000 and they have to pay an attorney, travel fees and court fees they generally don’t. Now if it’s for a $25,000 credit card or maybe apartment you may not get so lucky but you can still win your case. If they don’t show up you automatically win and receive a judgment of removal you can send to the (3) credit bureaus. By law the credit bureaus will now have to remove the debt from your credit report, whether it’s valid or not. Also, see the HIPPA section below for medical debt.

  1. Get proof (most of the time you don’t need it) but take screen shots of your phone or letter from your boss or even employee saying they called, copy of your credit report etc. You have to build a case against these people and it’s generally very easy because the majority do not follow the laws outlined in the Fair Credit Act.
  1. Every state is different so you need to check what your state’s maximum is for filing in small claims court. File your claim with the Small Claims court located in your county. Do not ever file for the state maximum for loss, always file it for a smaller amount. To file a claim, just go to the county courthouse and get the appropriate forms. Make sure to follow all the legal steps for filing this claim, including notifying the other party. Every state has different forms but they are all pretty self explanatory. Generally, there will be a section where you will insert your claim, make sure to ALWAYS include: REMOVAL OF DEROGATORY DEBT from all three credit bureaus; TransUnion, Experian and Equifax along with a dollar amount. This is super important. Without this you don’t really gain anything.
  1. Once your claim is submitted you may have to notify the creditor or collection company. This is the easy part. Don’t bother tracking them down too much, a lot of collection companies change addresses often. And it’s in your advantage if they never receive it.
  1. Once the court hearing comes, the creditor or collection representative may or may not show up. Most often the creditor and or the collection company is not located in your county or even state. Like I said, they generally do not for smaller debt. If they do, make sure you have your facts strait and list what Fair Credit Act law they broke, which again is super easy because most don’t follow the laws. Please see the document for the fair credit act laws. Now if they don’t show up, you automatically win and the courts will give you your judgment (what you asked for).
  1. HIPPA laws are very strict. If you validated your debt and the collection agency provided a list of your debt from the hospital or doctor they violated your HIPPA rights. Your medical information can never be shared to a third party without your consent. Some doctors and hospitals are getting smart about this and they bury the vernacular within forms you sign. Always read these forms and draw a line through anything that talks about sharing your information with a 3rd party. Winning a HIPPA case is super easy and most of the time they won’t show because they know they broke the law.

Just remember, suing a collection company or creditor is easy and you don’t need an expensive attorney. The cost to benefit is usually exponential. If you have a debt that’s hurting your score by 50 points or more and they keep validating this is honestly your last hope. I’ve seen cases over $10,000 that the creditor nor collection agency never showed and the debt was relieved, it can be that easy. Sure it’s more work for you but to have an extra 50 points on your credit or better interest rate on your car or home it’s worth it. Never give up fighting!

So Who Can You Sue and What Can You Sue For?

WhoWhyPrecedent/LawFine
Creditors if they report your credit history inaccuratelyInjury to your credit report and credit scoreFCRA
Section 604
(A)(3)
$2500
Credit bureaus if they refuse to correct information after being provided proofDefamation, willful injuryFCRA
Section 623
CUSHMAN VS. TRANS UNION CORPORATION
US Court of Appeals for the Third Circuit
Court Case 115 F.3d 220
June 9, 1997, Filed
(D.C. No. 95-cv-01743).

Extent of damages incurred by the wronged party, as deemed by the courts
Credit bureaus if they reinsert a removed item from your credit report without notifying you in writing within 5 business days.Consumer protection afforded by the FCRAFCRA
SECTION 611
Part (A)(5)(B)(ii)
$2500
Credit bureaus if they fail to respond to your written disputes within 30 days (a 15 day extension may be granted if they receive information from the creditor within the first 30 days)Consumer protection afforded by the FCRAFCRA
Section 611
Part (A)(1)
$2500
Creditors or collection agencies, and credit bureaus if they try and “Re-age” your account by updating the date of last activity on your credit report in the hopes of keeping negative information on your account longerConsumer protection afforded by the FCRAFCRA
Section 605
(c) Running of the reporting period
$1000
Collection agencies if they do not validate your debt yet continue to pursue collection activity (file for judgments, call or write you)Consumer protection afforded by the FDCPAFDCPA
Section 809 (b),
FTC opinion letter Cass from LeFevre (See Appendix B).
$1000
Collection agencies if you have sent them a cease and desist letter and they still call youConsumer protection afforded by the FDCPAFDCPA
Section 805 (c)
$1000
Collection agencies if they have not validated your debt and they still continue to report to the credit bureausConsumer protection afforded by the FDCPASection 809 (b),
FTC opinion letter Cass from LeFevre (See Appendix B).
$1000
Collection agencies if they:
Cash a post-dated check before the date on the check
Cost you money by making you accept collect calls or COD mail
Take or threaten to take any personal property without a judgment
Consumer protection afforded by the FDCPAFDCPA
Section 808
$1000
Calls you after 8 PM at night or before 9 AMConsumer protection afforded by the FDCPAFDCPA
Section 805. (a)(1)
$1000
Calls you at your place of employment if the debt collector knows or has reason to know that your employer prohibits the consumer from receiving such communication.Consumer protection afforded by the FDCPAFDCPA
Section 805. (a)(3)
$1000
Calls any third part about your debt like friends, neighbors, relatives, etc. However they can contact your attorney, a consumer reporting agency, the creditor, the attorney of the creditor, or the attorney of the debt collector.Consumer protection afforded by the FDCPAFDCPA
Section 805. (b)
$1000
The collection agency can not use any kind of harassment or abuse**Consumer protection afforded by the FDCPAFDCPA
Section 806
$1000
Collector cannot claim to garnish your wages, seize property or have you arrested ***Consumer protection afforded by the FDCPAFDCPA
Section 807
$1000
Collector must you in a county in which you lived when you signed the original contract for the debt or where you live at the time when they file the lawsuitConsumer protection afforded by the FDCPAFDCPA
Section 811 (a) (2)
$1000
Also a good grounds for getting a judgment vacated
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