Normally when you get a letter in the mail from an attorney’s office, you take the threat of a potential lawsuit seriously. However, some consumers are finding that they are being contacted by law firms alleging that they are being sued for a debt that they do not actually owe.
One report has come from a consumer who was contacted by a San Diego law firm, Hyde & Swigart, via a letter that stated that the addressee may have been sued and that county records indicated that he or she has been sued recently regarding a debt that is outstanding.
The letter also stated that if the individual had not received documents for a proceeding it is likely because the debt collector who is pursuing the debt did not send notice of the proceedings to the consumer in hopes of getting a default judgment against him or her. The firm then stated that they would help the consumer by reviewing the case for free. If the consumer wanted to hire the firm to represent him or her on the debt, it would cost him or her anywhere from $300 to $850. The problem is, this firm is offering to pursue a legal claim that may or may not actually exist or may not involve the person contacted.
This issue is not an isolated one, it is actually quite common. These firms will check the dockets for debt lawsuits and will send letters to those involved in hopes of getting business. However, the names listed on these cases may not actually be accurate, or they may not be the same person as the individual who receives the letter. In cases of mistaken identity, these letters raise a major red flag.
Many seniors have fallen prey to these tactics. These individuals are understandably concerned when they receive these letters, but they may jump to action before researching whether the claims are valid.
One item of concern that all consumers should be aware of is the fact that you have the legal right to be served with notice of legal proceedings. A debt collector cannot easily get a default judgment issued against you for a debt if you have never received notice of a legal proceeding. If that has happened, you do have legal recourse to fight the default judgment.
What these law firms are doing is another form of “ambulance chasing,” to put it into other words. The tactic is also alarming to individuals who are not the actual debtors involved in the case. By the type the person contacted has done the research to ensure that he or she is not the actual person named in the case, he or she has already gone through a great deal of unneeded and unwanted stress and anxiety.
These firms claim that the letters are helpful to the people they contact, although they have not gotten a favorable response from many of those reached.
Many of the state bar associations prohibit any solicitation for new clients if the communication is “false, deceptive or which tends to confuse, deceive or mislead the public.” However, many of these letters state that the person may or may not be party to litigation. The letter does not actually say that the person is, in fact, a party to any litigation. Therefore, the communication may not actually be considered deceptive. It is, however, walking a fine line.
Another consideration to keep in mind is your debt may not be legally collectible. If the debt has passed the state’s statute of limitations, a legal action cannot be brought to collect upon the debt. This defense will need to be raised in court if a legal action is brought, but it can fight any action, if one is presented.
Lastly, a consumer always has the legal right to request written confirmation of the debt that is allegedly owed. If a law firm has contacted you with a similar letter, you have the right to request written confirmation of the debt to see if it is a debt you owe. Do not go off the information in the letter alone. The creditor is legally obligated to provide this written confirmation as soon as it is requested. If a debt collector contacts you on a debt, the first step to take is to request written verification on the debt.
It also helps to know your rights when it comes to communications from debt collectors. Under the Fair Debt Collection Practices Act (FDCPA), third-party debt collectors are prohibited from engaging in collection tactics that are harassing, threatening or illegal.
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If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.