Debt collection lawsuits without basis and then collector gets a judgment

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Here is another question from a YouTube subscriber — how do collection lawsuits get filed with no proof?

Comment: Debt collection lawsuits without basis and then collector gets a judgmentIn this article, we’re looking at this great question from Charles:

The part I do not understand, is how a party can go into court, not owning the debt, claim they due own the debt, and get a summary judgment under the pretense of fraud..

This process reminds me of the FISA court fraud that the FBI has been exposed of doing. Lieing to the court.

Can’t wait to see how that turns out.

I

In regards to the FISA case, that will be interesting to see what happens with it.

Let’s talk about the civil aspect of court lawsuits.

In general, if you’re filing a lawsuit, you’re filing allegations in the complaint.

When the other side has been served and they do not answer the complaint, then they would have a default judgment against them. Most of the time, the judge will rule that the defendant agrees with the allegations in the complaint so there is no need to actually prove those allegations.

If you’re the one who filed the complaint, this means that you win the case. A judge isn’t going to take time to look at the case if the Defendant doesn’t respond.

This is how it works with debt collection lawsuits. 

If a debt collector sues you and you don’t respond, the judge will rule in the collector’s favor.  Even if the collector truly has no proof.

This question from Charles has to do with summary judgment.

In this case, the collector has to prove that there are no disputed facts in their case, and it’s clear that the debt collector should win.

However, the consumer is supposed to respond to that summary judgment in the right way, at the right time, and the right format. In Alabama we call it Rule 56, and in other states it should be Rule 56 as well.

Unfortunately, there are cases where the consumer ignores Rule 56, because they “want their day in court.”

We hate to break it to them, but the summary judgment was their day in court and they lost by ignoring the rules.

In that situation, the judge would say the only evidence is from the debt collector.

What if the debt collector is lying?

Well, it’s incredibly difficult to sue a debt collector if there’s a judgment against you.

Unfortunately, that judgment gives the debt collector credibility in the case.

We have a doctrine that basically says that we shouldn’t be able to use the Federal courts to overturn a State decision (the Rooker-Feldman Doctrine).

It’s important to remember this, especially when the frustration at the courts can be unbearable.

Even though the collector may be lying, it’s important that judgments have a sense of finality. 

Lawsuits need to have an end to them, and people need to be able to move on from those cases.

Now, there can be a period of time where we ask the judge to reconsider, or appeal our case. However when the deadline passes, the judgment is real and final.

Consumers can say that someone on the internet told them that judgments mean nothing and they’re not a big deal, but at the end of the day you do have a judgment against you that is real and has consequences.

Another example of the finality of a judgment is this:

Let’s say we represent you in a case against J.B. Hunt Trucking Company, we get a judgment against them, and then they tell us a year later that they have evidence to prove we were in the wrong. It doesn’t matter if they found evidence, because their deadline has passed.  Our verdict stands.

Lawsuits would never end if judgments didn’t put cases to rest.

Just to be clear, we’re not talking about lawsuits where the consumer wasn’t served.

Outside of cases where the consumer wasn’t served, the judgment needs to serve as the end of the lawsuit after the deadline for requests passes.

The key to dealing with collection lawsuits is to take action when we find out about them.

We can’t just sit back and say that we don’t want to be a part of a bogus lawsuit.

If you’ve been served, you have to participate in the lawsuit and defend yourself. This goes for all types of lawsuits, not just debt collection lawsuits. If you live outside of Alabama, you should look for an attorney in your state to help you.

We hope that this has been helpful to you!

If you have any questions about your unique situation, we’d be glad to help you in any way we can.

You can reach us by phone at 1-205-879-2447, or you can fill out a contact form and we will get in touch with you quickly. 

Have a great day!

-John G. Watts

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