Yes, a debt buyer can sue you for an unpaid debt, but that doesn’t mean the lawsuit is valid or that they have the legal right to collect. Debt buyers purchase old or charged-off debts from original creditors—often for pennies on the dollar—and then try to collect the full amount from you, sometimes using aggressive or unlawful tactics.
What Is a Debt Buyer?
A debt buyer is a company that purchases delinquent accounts from banks, credit card companies, or other lenders. Common debt buyers include Midland Credit Management, LVNV Funding, Portfolio Recovery Associates, and Cavalry SPV I, LLC.
Do Debt Buyers Have the Right to Sue?
They can sue, but they must:
- Prove they legally own the debt
- Show a clear chain of title from the original creditor
- Produce accurate records of the amount owed
- File the lawsuit within the statute of limitations
Many lawsuits by debt buyers lack documentation, are filed past the legal deadline, or rely on inaccurate records—this gives you legal grounds to fight back.
What Should I Do If I’m Sued by a Debt Buyer?
- Don’t ignore it – Ignoring a lawsuit could result in a default judgment.
- Review the documents – Look for inaccuracies or missing proof.
- Consult a consumer protection attorney – You may have strong defenses under laws like the Fair Debt Collection Practices Act (FDCPA) or Fair Credit Reporting Act (FCRA).
Can You Help Me Fight the Lawsuit?
Yes. At Consumer Rights Law Firm PLLC, we defend clients every day against debt buyer lawsuits. We can:
- Challenge the debt buyer’s right to sue
- Demand proof of ownership and correct balance
- Settle the case or get it dismissed when proper procedures aren’t followed
What If I Already Paid or Settled the Debt?
Even if you’ve paid or settled a debt, debt buyers sometimes still sue in error. We can help you enforce your rights and stop unjust claims.
If you’ve been sued or threatened by a debt buyer, call us today at 877-700-5790. Your rights matter—and we’re here to protect them.