Suing a Collection Agency

Do you owe money to a creditor? If so, then you may have seen ads or read articles about filing a lawsuit against the debt collection agency. It seems as though lawyers across the nation are spending their marketing dollars trying to cash in on debt collection lawsuits. The reality is that these lawsuits take up both your time and money, yet most people end up seeing little in return. Before you consider filing a lawsuit, you should weigh the other options you have available to determine if it’s worth the time and risk.

3 Cons to Suing a Debt Collector:

  1. It may be Expensive – Taking on any type of lawsuit can be a pricey endeavor. The legal fees alone can eat up most of the reward you may be granted if you are able to win your case. If you lose, however, you may find yourself even further in debt and could be liable to pay the collection agency’s attorney fees.
  2. It’s Time Consuming – Debt collection lawsuits are typically filed in federal court under the FDCPA, a law regulating debt collection practices. Because these cases fall under federal jurisdiction, they can take months or even years to make it through the court system. Really consider if you’re willing to invest that much time and effort into pursuing a case that you may or may not win.
  3. There are Easier Ways – Under the FDCPA, there are several more cost effective options available to end harassment from a debt collector. In addition, many collection agencies are just looking to receive some sort of payment when they call and would be willing to work with you to develop a manageable payment plan.