Debt Collection Lawsuit: Lies About You Making A Payment

Why is it important to get information from a debt collector?Why do debt buyers lie about you making a recent payment in a debt collection suit?

In a debt collection suit, it is surprising to find out the debt buyer claims you made a payment 4 years ago.  When you know you haven’t made a payment in 10 years.

You find this out in several ways.

  • Sometimes in the actual lawsuit but this is rare because the normal suit has few details.
  • The collection lawyer sends you alleged “proof” that is nothing but a print out saying you made a payment, or
  • You find on your credit reports that there is a notation of a recent payment.

Why does this happen in a debt collection suit when you know you haven’t made a payment?

Because debt buyers in Alabama think if they make up a payment that this will restart the statute of limitations.  I don’t agree with this position, but this is at least what they believe and hope.

When confronted about their utter lack of proof, the debt collector says “Why would we lie about this?  It means your client owes less money!”

Let’s see.

Does it make sense to lie about getting a $25 payment (that’s the favorite amount to lie about) in order to steal $4000 from someone in a lawsuit?


Remember that if the debt collector sues (or threatens to sue) after the statute of limitations expires, it violates the FDCPA

Debt collectors know that it is illegal to sue an Alabama consumer after the statute of limitations has expired.  It is also illegal to threaten to sue after the statute of limitations has expired.

This can violate state law and also the FDCPA (Fair Debt Collection Practices Act).

For example, we recently sued Portfolio Recovery Associates for suing on a debt it could not prove it owned.  And the debt was from 2000, so the suit (and credit reporting) was a decade too late.

So to protect themselves (they think), debt collectors make up payments.

Debt buyers who sue must show you owe the debt and they own the debt.

Ultimately in a debt collection lawsuit, the collector must prove the amount owed and that it owns the debt.  These two steps are difficult for the collector to do.


Because it normally doesn’t own the debt or, if it does, it refuses to prove it.

And it has no idea the amount owed.  All it normally has is a computer screen with numbers but no supporting documentation.

So, check out your situation if you are being sued or you are threatened with a suit.  Pull your credit reports.

Learn your five options when sued so you can make the best decision.  This may be to fight the lawsuit and then sue the abusive debt collector after you win.

Best wishes….

John Watts

PS — call us at 205-879-2447 if you would like to chat about your situation in Alabama.  Or you can contact us online here.


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