Debt Buyer Defense - Fight Back & Win
Sued by a Company You've Never Heard Of? They Bought a Spreadsheet — Not Proof They Can Win.
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Common Debt Buyer Tactics
Debt buyers rely on volume, not accuracy. Their shortcuts are your defense.
No Proof of Ownership
They cannot produce the original signed contract or a complete chain of title proving they purchased your specific account.
Expired Debts
Suing on a debt past the statute of limitations — which is itself an FDCPA violation carrying up to $1,000 in damages.
Wrong Amount
Inflating the balance with unauthorized interest, fees, or charges that were never in your original credit agreement.
Identity Confusion
Pursuing you for a debt belonging to someone with a similar name, address, or Social Security number.
Missing Validation Notice
Failed to send the required 30-day validation notice before demanding payment or filing suit.
Improper Venue
Filed the lawsuit in the wrong court — not where you live or where you signed the original contract.
The Process
From harassment to compensation in three simple steps.
Free Review
We analyze your case at no cost
We File Suit
We take legal action against violators
You Get Paid
Receive compensation for violations
A letter from a company you've never heard of. A debt you don't recognize. A lawsuit filed before you had time to respond.
Companies like Midland Credit Management, Portfolio Recovery Associates, LVNV Funding, Cavalry SPV, and Jefferson Capital Systems buy charged-off debts from banks for pennies on the dollar — sometimes 2 to 5 cents per dollar of face value. Then they sue for the full amount, betting you won't show up to fight.
Under the FDCPA protections established by federal debt collection law, debt buyers are classified as "debt collectors" — which means every rule that restricts collectors applies to them. When they cut corners, and they almost always do, you have the right to fight back.
At Hyslip Legal, we defend consumers against debt buyer lawsuits on contingency. You pay nothing unless we recover money for you.
What Is a Debt Buyer — And Why Are They Suing You?
The Chain of Title Problem
When a bank gives up on collecting a delinquent account, it "charges off" the debt and sells it — usually bundled with thousands of other accounts — to a debt buying company. That company may resell the portfolio to another buyer, who resells it again. By the time someone files a lawsuit against you, the debt may have changed hands three or four times.
Each transfer is supposed to include documentation proving exactly which accounts were sold. In practice, debt buyers receive a spreadsheet: your name, an account number, and an alleged balance. No signed contract. No monthly statements. No proof that the debt is yours, that the amount is correct, or that the chain of ownership is unbroken. Courts have dismissed thousands of debt buyer cases for exactly this reason.
Why Debt Buyers File So Many Lawsuits
The business model depends on volume. A debt buyer pays $30,000 for a portfolio of accounts with a combined face value of $1 million. If even 10% of those consumers pay the full amount — either out of fear or because they never respond to the lawsuit — the buyer profits handsomely. The strategy relies on default judgments: filing suit, waiting for the consumer to miss the response deadline, and collecting without ever having to prove the case in court.
Debt buyer ≠ original creditor. Under 15 U.S.C. § 1692a(6), any entity that purchases debt for the purpose of collection is a "debt collector" subject to the full restrictions of the FDCPA. The original bank that issued your credit card is not — but the company that bought the charged-off account absolutely is.
Is this happening to you?
You may be entitled to compensation of $500–$1,500 per violation.
Call Us NowYour Defenses When a Debt Buyer Sues
A debt buyer lawsuit is not a conviction — it's a complaint that must be proven. These are the defense tools available to you.
The 30-Day Validation Window
Within five days of first contact, a debt collector must send you a written validation notice identifying the debt, the amount owed, and the original creditor (15 U.S.C. § 1692g(a)). You then have 30 days to request verification. If you dispute the debt in writing within that window, the collector must cease all collection activity until it provides written verification. Many debt buyers skip or botch this step entirely — which is both a defense to their lawsuit and an independent FDCPA violation. Read our debt validation letter guide for step-by-step instructions.
Statute of Limitations
Every type of debt has an expiration date for lawsuits. In most states, the statute of limitations on credit card debt ranges from three to six years from the date of your last payment. Once that window closes, the debt becomes "time-barred" — and suing on a time-barred debt is itself an FDCPA violation under CFPB guidance and federal case law. Debt buyers frequently purchase portfolios containing accounts well past the limitations period and file suit anyway, counting on consumers who don't know the deadline has passed. Your state's specific deadlines are governed by state consumer protection laws.
Venue Challenges
The FDCPA requires debt collectors to file lawsuits in the judicial district where you live or where you signed the original contract (15 U.S.C. § 1692i). Filing in the wrong venue — a courthouse hours from your home, or in a state you've never lived in — is grounds for a motion to dismiss and constitutes a separate FDCPA violation. Debt buyers with national portfolios sometimes file hundreds of suits in a single jurisdiction for efficiency, regardless of where the consumers actually reside.
If the debt buyer violated the law during collection or litigation, you may also have an FDCPA counterclaim — turning a defensive case into one where the debt buyer owes you money. See our breakdown of FDCPA violation types and damages for details.
Sued by a Debt Buyer? The Clock Is Ticking.
Most courts give you just 20 to 30 days to respond to a lawsuit. Miss that deadline and the debt buyer wins automatically — no evidence required. A default judgment lets them garnish your wages and freeze your bank account.
We review debt buyer lawsuits for free and can often file your response the same week.
How We Defeat Debt Buyer Lawsuits
Demanding the Original Contract
The cornerstone of any debt buyer defense is forcing the plaintiff to produce actual evidence. We file discovery requests demanding the original signed credit agreement, complete account statements from the original creditor, every bill of sale and assignment agreement in the chain of title, and competent testimony from someone with personal knowledge of the account. Debt buyers purchased a spreadsheet row — not a filing cabinet. When they cannot produce these documents, courts dismiss the case.
Challenging the Statute of Limitations
We review account records to determine exactly when the limitations clock started and whether it has expired. If the debt is time-barred, we move to dismiss and pursue an FDCPA counterclaim for filing suit on an expired debt. One critical warning: in some states, making a partial payment or even acknowledging the debt in writing can restart the statute of limitations. If a collector is pressuring you to make a "small good-faith payment," that may be a calculated attempt to revive a dead claim. Do not make any payment before consulting an attorney.
Exposing Defective Affidavits
To get around the lack of real evidence, many debt buyers submit affidavits from employees who have no personal knowledge of your account. These "robo-signed" affidavits — sometimes produced by the hundreds per day — are sworn statements that the affiant reviewed your records and confirmed the debt. In reality, no one reviewed anything. Courts increasingly reject these affidavits as inadmissible hearsay. We challenge every affidavit for foundation, personal knowledge, and authenticity of attached records.
Turning the Tables with a Counterclaim
When a debt buyer's conduct crosses the line — suing on a time-barred debt, filing in the wrong venue, failing to validate, or using robo-signed affidavits — we file FDCPA counterclaims. Instead of defending against their demand for money, the debt buyer is now defending against yours. Under 15 U.S.C. § 1692k, successful counterclaims can recover up to $1,000 in statutory damages per case plus actual damages and attorney's fees — which the debt buyer pays. Learn more about responding to a lawsuit from a debt buyer.
Do not ignore a debt buyer lawsuit. If you fail to file an Answer by the court's deadline, the debt buyer gets a default judgment — even with zero evidence. A default judgment allows wage garnishment, bank account levies, and property liens. The single most important thing you can do is respond on time. We can help you stop collection harassment and file a proper defense.
What to Gather Before Your Free Consultation
Arriving prepared helps us evaluate your case faster and identify your strongest defenses. Gather as many of these documents as you can — but don't worry if you're missing some. We can work with what you have.
Court Summons & Complaint
The documents you received from the court — these contain the response deadline.
Letters from the Debt Buyer
Any correspondence from Midland, PRA, LVNV, or their attorneys.
Original Account Statements
Credit card or loan statements from the original creditor (Chase, Citibank, etc.).
Debt Validation Notice
The initial notice identifying the debt and your right to dispute — if you received one.
Call Logs
Phone records showing dates, times, and frequency of collector calls.
Credit Report
A recent credit report showing how the debt buyer is reporting the account.
Written Correspondence
Dispute letters, cease and desist letters, or any written exchanges.
Notes on Threats or Misrepresentations
Anything a collector said that felt threatening, misleading, or untrue — write it down.
Don't have everything listed above? That's completely fine. Many clients come to us with nothing but a court summons — and we still win. The consultation is free regardless.
Your Options When Facing a Debt Buyer Lawsuit
Case Dismissal
When the debt buyer cannot produce the original signed agreement, a complete chain of title, or admissible evidence connecting you to the account, we move to dismiss. The court throws out the case. You owe them nothing. This is the most common outcome when consumers actually fight back — debt buyers settle or drop cases they cannot prove rather than risk a courtroom loss that creates bad precedent.
Favorable Settlement
If the debt buyer holds some evidence but faces clear weaknesses — gaps in the chain of title, questionable affidavits, or statute of limitations issues — we negotiate from a position of strength. Settlements in these situations often resolve for 20% to 40% of the claimed balance, sometimes less. We never recommend settling unless the deal is substantially better than the likely trial outcome.
FDCPA Countersuit
When the debt buyer violated federal law — filing on a time-barred debt, suing in the wrong venue, failing to validate, using robo-signed affidavits — we file counterclaims under the FDCPA. Statutory damages up to $1,000, plus actual damages for financial harm and emotional distress, plus attorney's fees paid by the debt buyer. The company that sued you ends up writing you a check.
Bankruptcy Protection
If the debt buyer lawsuit is just one piece of a larger debt crisis — multiple creditors, garnishment threats from several directions — Chapter 7 bankruptcy may be the most effective path forward. Filing for bankruptcy triggers an automatic stay that immediately halts all collection activity, lawsuits, and garnishments. Our Chapter 7 bankruptcy guide walks through the entire process.
Questions People Ask When Sued by a Debt Buyer
What is the difference between a debt buyer and a debt collector?
A debt collector works on behalf of a creditor to collect a debt — they don't own the account. A debt buyer purchases the debt outright and collects for their own profit. Under the FDCPA, both are regulated as "debt collectors" (15 U.S.C. § 1692a(6)), which means both are subject to the same federal restrictions on harassment, false statements, and unfair practices. The practical difference is that debt buyers typically have far less documentation, since they purchased the account secondhand rather than originating it.
Should I respond to a debt buyer lawsuit?
Absolutely — and quickly. If you fail to file an Answer by the court's deadline (typically 20 to 30 days after service), the debt buyer wins by default. A default judgment allows wage garnishment, bank account levies, and property liens — all without the debt buyer ever having to prove it owns the debt. Filing an Answer is the single most important step, and it preserves every defense available to you.
Can a debt buyer sue me for a debt that's 10 years old?
They can file the lawsuit, but the debt is almost certainly past the statute of limitations. Most states set the limitations period for credit card debt between three and six years. Suing on a time-barred debt doesn't just mean the case gets dismissed — under CFPB guidance and federal case law, it is itself an FDCPA violation that entitles you to damages. You must raise the statute of limitations defense in your Answer, though. If you ignore the lawsuit, the debt buyer can still get a default judgment regardless of the debt's age.
What does "chain of title" mean and why does it matter?
The chain of title is the sequence of documents proving ownership of your debt from the original creditor through every subsequent buyer. To win in court, the debt buyer must produce a bill of sale for each transfer that specifically identifies your account — not just a generic agreement covering a portfolio of thousands of accounts. Gaps in the chain of title mean the debt buyer cannot prove it has standing to sue you, and courts routinely dismiss cases on this basis.
What happens if I already paid the debt buyer?
If you paid the full amount, the debt buyer must stop all collection activity and reporting. If you paid and the debt buyer continued collecting or kept reporting the account to credit bureaus, those actions may violate both the FDCPA and the FCRA. If you paid a debt that was time-barred or that the debt buyer could not have proven in court, you may still have FDCPA counterclaims for the illegal conduct that preceded your payment — though recovering the payment itself is more difficult.
Can a debt buyer report the debt to credit bureaus?
Yes, but only accurately. Debt buyers frequently report purchased debts to Equifax, Experian, and TransUnion as a pressure tactic. If the reported information is inaccurate — wrong balance, wrong dates, wrong debtor — you have the right to dispute it under the FCRA credit reporting claims process. If the debt buyer or credit bureau fails to investigate and correct the error, that is a separate federal violation with its own damages.
How much does it cost to fight a debt buyer?
For FDCPA counterclaims, we work on contingency — you pay nothing upfront, and the FDCPA's fee-shifting provision (15 U.S.C. § 1692k(a)(3)) requires the debt buyer to pay our attorney's fees if we prevail. For lawsuit defense where no counterclaim exists, we offer flat-fee representation. The initial consultation is always free. Learn more about how an FDCPA attorney services engagement works.
What if I don't recognize the debt at all?
This happens more than you might expect. The debt may belong to someone with a similar name, it may have been fraudulently opened using your identity, or the original account may have been sold so many times that the current balance bears no resemblance to anything you owe. You have the right to request debt validation within 30 days of first contact. If the debt buyer cannot verify the debt is yours, they must cease collection. If they continue anyway, every additional collection attempt is a separate FDCPA violation.
Can I sue the debt buyer even if I owe the money?
Yes. Owing a debt does not give the collector a license to break the law. If a debt buyer filed suit in the wrong venue, failed to send a validation notice, sued on a time-barred debt, used robo-signed affidavits, or engaged in any other FDCPA violation, you can bring counterclaims regardless of whether the underlying debt is valid. The FDCPA protects the process of collection, not just the validity of the debt. Consumers who owe money are entitled to the same legal protections as those who don't.
They Filed the Lawsuit. We File the Defense.
Debt buyers count on you doing nothing. Every day you wait brings the response deadline closer. Let us review the complaint, identify your defenses, and fight back — starting today.
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This page constitutes attorney advertising. The information provided is for general informational purposes and does not constitute legal advice. Every situation is unique — contact Hyslip Legal for a free consultation to discuss your specific circumstances. Submitting a contact form does not create an attorney-client relationship. Information submitted is not confidential until an engagement agreement is signed.
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