Part III: From Overwhelmed to Empowered: How Fighting Back Protects Your Future
In Part I of our series, we talked about the paralyzing emotions of receiving a debt lawsuit. Part II walked through the legal process of responding and discovery. Now, in our final installment, we’ll focus on the ultimate empowerment: how fighting back against a debt you don’t owe not only resolves the immediate lawsuit but also protects your long-term financial future.
At Bell Law, LLC, our goal isn’t just to help you survive a lawsuit; it’s to help you thrive by securing the best possible outcome and ensuring your rights are protected.
The Hidden Costs of Paying a Debt You Don’t Owe
While paying a debt you don’t owe might offer a quick escape from the immediate stress, the long-term consequences can be far more damaging to your financial future and overall well-being.
Validation of Fraud or Error: Paying a debt incurred through identity theft could validate the fraudulent account, potentially leading to more fraudulent activity targeting you. For debts based on error, paying confirms the inaccuracy, leaving you vulnerable to similar future issues. From a legal standpoint, payment can be seen as an admission you owed it, making future disputes much more difficult.
Credit Report Damage Persists or Worsens: Even if paid, the negative underlying inaccurate information often remains on your credit report. The account might then show as “paid collection” or “paid charge-off,” which are still negative marks that significantly lower your credit score and affect your ability to secure favorable lending terms.
Direct Financial Loss: You’re directly losing money for something you don’t legitimately owe, money that could be used for your actual financial obligations or goals.
Risk of Judgment Despite Payment: Entering a payment plan or making a payment doesn’t automatically dismiss a lawsuit. If you fail to appear in court or have legal representation to ensure proper dismissal, the plaintiff could still take a default judgment against you. This judgment can lead to wage garnishment or bank levies, even if you intended to pay or were already making payments.
Loss of Legal Protection: Paying forfeits your opportunity to formally challenge the debt in court and establish a legal precedent that it’s not yours. You also lose the chance to use powerful consumer protection laws that could not only defend you but potentially result in compensation.
Encourages Future Abuse: Allowing illegitimate claims to succeed encourages debt collectors and fraudsters to pursue others with similar tactics, perpetuating a cycle of abuse against consumers.
Beyond Defense: Turning the Tables with Counterclaims
This is where the true power of an experienced consumer protection attorney comes in. At Bell Law, LLC, we don’t just play defense; we often go on the offensive by filing counterclaims against debt collectors who violate your rights. This approach can lead to not only dismissing the lawsuit against you but also winning compensation for the violations of your rights.
The Fair Debt Collection Practices Act (FDCPA): This federal law prohibits abusive, deceptive, and unfair debt collection practices. If a debt collector or debt buyer violates the FDCPA by harassing you, making false statements, or continuing to collect after proper dispute without verification, you can sue them for actual damages (including emotional distress) and statutory damages of up to $1,000, plus your reasonable attorneys’ fees and court costs.
The Fair Credit Reporting Act (FCRA): This federal law ensures accurate credit reporting. If you dispute inaccurate information, especially for a debt you don’t owe, with a credit bureau, and the debt collector fails to conduct a reasonable investigation or continues reporting inaccuracies, they may violate the FCRA. This can result in actual damages (including emotional distress), statutory damages, and recovery of your attorneys’ fees.
State Consumer Protection Laws: The Missouri Merchandising Practices Act (MMPA) and Kansas Consumer Protection Act (KCPA) broadly prohibit deceptive, unfair, and unconscionable practices by “suppliers,” including debt collectors. Violations can lead to actual damages, civil or punitive penalties (up to $10,000 per violation under KCPA), and attorneys’ fees.
Common Law Claims: In certain cases, if a debt buyer sues you without probable cause or proper purpose, or acts negligently in verifying the debt, you may have claims for abuse of process and negligence that can result in damages.
These laws create powerful tools that can transform you from a defendant being pursued for a debt you don’t owe into a plaintiff seeking justice and compensation for violations of your rights.
Protecting Your Credit and Your Peace of Mind
The ultimate goal of fighting back is to secure your financial future and regain your peace of mind. By successfully challenging a debt you don’t owe, your legal team can seek comprehensive relief that addresses both the immediate lawsuit and the broader impact on your financial life.
Dismissal of the Lawsuit: This ends the immediate threat of judgment, wage garnishment, and bank levies that comes with an active lawsuit against you.
Declaration that the Debt is Not Owed: A court order officially clearing you of the debt provides legal certainty and protection against future collection attempts on the same debt.
Injunction Against Future Collection: A court order prohibiting the collector from ever trying to collect this debt from you again gives you permanent protection and peace of mind.
Removal of Negative Credit Reporting: Court orders for the inaccurate debt to be deleted from your credit reports help repair your credit score and restore your financial reputation.
Financial Compensation: Damages and attorneys’ fees if your rights were violated can provide compensation for the stress, time, and financial harm caused by the wrongful collection attempts.
Taking Control of Your Financial Future
Don’t let fear or shame keep you from acting. You have rights, and there are powerful laws designed to protect consumers like you. Taking control of your situation and fighting back with the right legal team can transform overwhelming fear into empowering victory.
The legal system may seem intimidating, but it also provides strong protections for consumers who are willing to stand up for their rights. When debt collectors violate the law, they can be held accountable, and you can be compensated for the harm they’ve caused.
If you’ve been sued for a debt you don’t owe in Kansas City or anywhere in the Midwest, contact Bell Law, LLC today. Let us help you understand your options, fight for your rights, and protect your financial future.
This blog post is for informational purposes only and is not legal advice. Each case is unique, and the outcome depends on specific facts and circumstances.
