Debt buyers are companies that purchase large portfolios of “bad debt”, also known as delinquent or charged-off consumer credit obligations. Credit card accounts are by far the most common type of debt these companies like to purchase, but they are also active in utility bills, business loans, medical debt and more recently, private student loans. These entities and companies have exotic names like Encore Capital or Portfolio Recovery Associates, and it is likely you have never heard of them until a threatening letter mysteriously arrives one day claiming you owe them thousands of dollars.

Debt buyers purchase your original debt for pennies on the dollar (this is not an exaggeration, they literally pay 5 or 6 cents per dollar for recent debt, and less than a penny for aged accounts). In turn, they become the legal owner of the debt, and are entitled to attempt to collect on the entire outstanding amount, including interest and fees from the original agreement. Tack on the fact that many of these companies then illegally charge their own interest and fees to uninformed consumers, and you can quickly see why this is a lucrative and growing business here in Texas.

Debt buyers rarely have the underlying documentation to prove their case...

Chad Johnson Managing Partner

Once a debt buyer purchases your account, you can guarantee the harassment will start immediately. Expect letters and phone calls non-stop until the issue is resolved. Remember, all these companies do is buy debt and attempt to collect on it. They will use every trick in the book, many of them against the law, to get you to pay even a portion of the debt. Once you've made just a single payment to them, the statute of limitations starts fresh, and they can continue to collect on the account like new. If you instead choose to just ignore them, eventually they will file a debt lawsuit in attempts to receive a default judgment against you. If you fail to respond to the lawsuit, they will win, and at that point they will be legally allowed to freeze and garnish your bank account, cloud the title to your home, and seize non-exempt assets to recover their money. The good news is we can stop all of this from occurring, and in many cases, get the entire debt dismissed!

Our attorneys will aggressively fight your debt buyer or debt collection firm and force them to prove their lawsuit is valid in court. Debt buyers very rarely have the required documentation to prove their case and without it they are entitled to NOTHING! We will attack their case every step of the way and make them prove they are legally entitled to collect on the debt. You will find that your debt buyer is suddenly much more willing to negotiate once you have an actual attorney by your side. We'll also ensure all the harassment stops immediately, and all contact regarding the debt goes through us. Ultimately, our firm will either force the debt buyer or debt collector to dismiss their lawsuit, or negotiate a settlement of the original debt for an amount you can actually afford to pay.

If you are facing a lawsuit from a debt buyer or debt collection firm here in Texas, don't wait until it's too late. Contact the experienced debt relief attorneys of Johnson & Bryan today for a free evaluation of your case.

The information contained in this web page is for general information and educational purposes and is not legal advice. Reading these posts does not create an attorney / client relationship with the law firm of Johnson & Bryan.