Why You Should Not File A Counterclaim To A Debt Buyer Lawsuit

Why You Should Not File A Counterclaim To A Debt Buyer Lawsuit

We receive many calls and emails from Alabama consumers who have been sued by debt buyers and a good number of these consumers have filed counterclaims when sued by a debt buyer. We generally do not do this for our clients.  Here are some of the reasons.

First, it can complicate an otherwise simple case. The debt buyer sued you. The debt buyer must prove you owe money to the debt buyer. To do this the debt buyer must prove it owns the debt that you owe.  This sounds so basic - the plaintiff must prove it has a right to sue you but the amazing thing is we have not seen this happen. So the case is straight forward but when we get counterclaims involved they can become messy and distracting.

Second, we have never seen a debt buyer or collection law firm give up just because someone has filed a counterclaim. So the reason many on the internet advise to file counterclaims - to scare the collector - is simply not valid.  Most debt buyers require their collection attorneys to handle the counterclaim for free so the debt buyer doesn't normally mind a counterclaim.  The collection lawyer doesn't like it but if the lawyer wants to keep all the debt buyer's business, the lawyer will handle the counterclaim.

Finally, if you have a legitimate claim, file it in federal court. Don't file it in district court or small claims court unless the value is $10,000 or under. If, for example, you are the victim of identity theft and the debt buyer sues you anyway and won't dismiss the case with prejudice, you likely have a potential case against the debt buyer. File that good case in federal court. If a claim is worth filing and pursuing, then almost always it is better to do that in a separate lawsuit.

If you would like more information, feel free to call us at 205-879-2447 or fill out our contact form to get a copy of our free report on the secrets that debt buyers don't want you to know about when they sue you. This report exposes a number of things that debt buyers are counting on you not knowing - so educate yourself so you can make the best possible decision on how to handle a debt buyer lawsuit.