Home> Credit Library

Step by step: How to sue a collection agency in small claims court

If you have decided to take action against a collection agency for violating the FDCPA we have some tips for you. It's not easy, but it is very doable and with a little education about the process you can limit the risk of getting your case dismissed. Every day, people across the country are contacted by bill collectors. While most of it is probably legitimate business communications, others suffer serious abuse like threats of lawsuit, revealing debt information to third parties or pursuing an expired debt or ignoring a cease and desist order. It's important to know if you have a case - and if you do, you can take legal action and even collect monetary damages.

Do you have a small claims case against the collection agency?
First off you need to determine what they did and if it qualifies for a law suit? If you were nothing more than inconvenienced a time or two you may lose or the judge may dismiss the case altogether. Suing a collection agency is meant to give you closure and perhaps damages for a violation but too many consumers run into court and only end up annoying everyone because their case is so flimsy. So what is a good case? Just read some of the successful lawsuits filed by the FTC against collection agencies.

Legit actions usually involve repeated phone calls at all hours, threats, harassment or intimidation or obvious violations such as refusing to validate the debt at your request yet continuing to try and collect. Those are all good reasons to take action. It's also important to show what you did before you took that final step and filed your lawsuit against the bill collector. Keeping good records and receipts is paramount to building a good case.

Building the small claims case
Prior to filing your lawsuit you should have asked the collection agency to stop whatever it was they were doing. For example if you told them to stop calling you and they refuse, then you need to follow up with a letter to the collection agency certified mail- return receipt requested - putting your demand in writing. Then if the agency refuses to stop, you have proof that a letter was sent and received by them and yet they continued to bother you. Just claiming you told them by phone doesn't preserve your rights, especially in a small claims case where evidence is everything.

If you have witnesses to the collection agency harassment then take notarized statements from them to back up your case. If you sent them a validation of debt request certified mail but they never responded, then you have the certified receipt with the person's signature to prove you asked. These paper trails can be the difference between winning and losing, so document everything. No matter how many letters, faxes, emails or phone calls you made, take time to include copies of your phone bills, emails or fax confirmations so that you can quickly show the judge the agency's neglect.

You are permitted to sue a collection agency, creditor or credit bureau under the various credit laws. A lawsuit can send a powerful message to a creditor, credit bureau or collection agency that is harassing you. Money is a tool that they certainly listen to and you collecting damages of up to $1,000.00 is pretty loud. You can go pro-se (represent yourself) or use an attorney.

Find More Credit/Collection Articles:
Repossession & Your Car | Bankruptcy - All you need to know | Statute of Limitations | Restricted Settlements | Judgments | Sample Letters | Credit Re-Scoring | Debt Management vs. Debt Negotiations | Credit Counseling vs. Debt Consolidation | DIY Credit Repair Help | How To Improve Your Credit History | Dealing with Tax Liens | Delinquent Student Loans | Collection Agency Abuse Tips | Best Credit Repair Resources on the Web | Credit Repair & Common Sense | Credit and Divorce | Attorneys General By State | Car Loan Default Consequences | Cease and Desist Letter | Collection Laws All States | Dealing with Medical Collections (HIPPA) | Credit cards & bad credit | How to fix your credit | What can a credit repair service do for you? | See All Credit Repair Articles--->

Find Services: Credit Repair & Consumer Attorney | Credit Repair Companies | Debt Settlement Firms | Bankruptcy Attorney | See All Credit Services --->

Popular Tags: VOD | SOL | RE | DIY | Settlements | Disputes | CRA | CA | OC