Frequently Asked Questions: Sued for a Debt You Don’t Owe in Missouri
Being sued can be daunting, especially when it’s for a debt you don’t believe you owe. This guide provides answers to common questions for Missouri consumers facing this stressful situation.
Q1: I just received a lawsuit for a debt, but I know I don’t owe it. What should I do first?
A1: Do NOT ignore it. The most important first step is to file a written Answer with the court by the deadline specified in the summons. When drafting your Answer, you should also include any Affirmative Defenses you may have, as outlined in Missouri law. Ignoring the lawsuit can lead to a default judgment against you, which can have serious financial consequences, even if you don’t owe the debt.
Q2: Why would someone sue me for a debt that isn’t mine?
A2: This can happen for several reasons, including identity theft, mistaken identity, errors in record keeping by the original creditor or debt buyer, or because the debt is old or invalid for other legal reasons. Debt buyers often purchase debts in large portfolios, and the information they receive may be incomplete or inaccurate, leading them to pursue the wrong person or try to collect on debts that are not legally collectible.
Q3: The lawsuit is from a company I’ve never heard of, like “Portfolio Recovery Associates” or “Midland Funding.” Who are they?
A3: These are often debt buying companies. They purchase debts, usually for a small percentage of the amount owed, and then try to collect the full amount. They may not have direct experience with the original account.
Q4: The lawsuit claims the debt was originally with a bank or company I’ve never done business with. What does that mean?
A4: This could strongly suggest mistaken identity or identity theft. Debt buyers acquire debts from various sources. If you have no relationship with the original creditor mentioned, it’s a key point for your defense. As seen in a recent case, sometimes another bank or entity that previously held the debt might even confirm that the account wasn’t legitimately opened in your name due to fraud.
Q5: How do I know if I have been the victim of identity theft?
A5: It’s common to initially think it’s just a mistake or clerical error when you’re sued for a debt you don’t recognize. However, it’s crucial to investigate if it might be identity theft. Signs can include:
* Receiving bills or collection notices for accounts you didn’t open.
* Unfamiliar accounts appearing on your credit report.
* Being denied credit or having credit limits lowered unexpectedly.
* Receiving notices about data breaches where your personal information was exposed.
* Seeing an address associated with the account that is allegedly yours, but you have never lived at or been associated with.
* In the context of a lawsuit, if the debt is tied to an original creditor you’ve never had an account with, or if efforts to dispute it with the original creditor or credit bureaus don’t resolve the issue, it strongly points towards identity theft.
Q6: I think this debt is due to identity theft. How does that affect the lawsuit?
A6: If you are a victim of identity theft, you are generally not responsible for debts incurred fraudulently in your name. You should gather any evidence of identity theft you have, such as an FTC identity theft affidavit or police reports. This is a strong defense against the lawsuit. In one instance, a consumer filed disputes and complaints, and a bank that previously held the alleged debt confirmed the account was not legitimately opened in the consumer’s name due to fraud.
Q7: I’ve already disputed this debt with the credit bureaus or the company suing me. Why are they still suing me?
A7: Unfortunately, this happens. Sometimes, even after you dispute a debt and provide evidence (like identity theft documentation), debt buyers may continue collection efforts, including filing a lawsuit. Continuing to pursue a debt after being notified it’s disputed or potentially invalid can potentially violate consumer protection laws like the FDCPA or FCRA. In one case, the plaintiff was sued despite having submitted multiple disputes with documentation, including an FTC identity theft affidavit, and making complaints to the CFPB.
Q8: Can they legally sue me without proving I owe the debt?
A8: In court, the party suing you (the plaintiff) generally has the burden of proving their case, including that you owe the debt and that they have the legal right to collect it. Your Answer can deny that the debt is yours and demand strict proof of liability, such as a signed card user agreement. If they cannot provide sufficient evidence linking you specifically to the debt (like a signed agreement or a clear chain of title for the debt), their claim may fail.
Q9: What are the potential outcomes if I fight the lawsuit?
A9: If successful, the lawsuit could be dismissed, meaning you are not liable for the debt. You may also be able to resolve the case through settlement. Additionally, if the party suing you violated consumer protection laws, you might be entitled to damages, civil penalties, and have the right to seek recovery of your attorneys’ fees and court costs. You might also seek to have the inaccurate information removed from your credit reports and enjoin future collection attempts.
Q10: What is the Missouri Merchandising Practices Act (MMPA) and how does it apply?
A10: The MMPA is a Missouri state law that protects consumers from deceptive, unfair, and unconscionable practices in connection with the sale or advertisement of merchandise (which can include debt collection services). Suing someone for a debt they know or should know isn’t valid, making false representations about the debt, or taking advantage of a consumer’s lack of legal knowledge could potentially violate the MMPA. If violations occur, the consumer may be entitled to recover actual damages, punitive damages, and reasonable attorneys’ fees and costs.
Q11: What are the Fair Debt Collection Practices Act (FDCPA) and Fair Credit Reporting Act (FCRA) and how do they apply?
A11: The FDCPA is a federal law that prohibits abusive, deceptive, and unfair debt collection practices by third-party debt collectors. Suing on a debt not owed or using deceptive tactics (like attempting to collect a debt not permitted by law as the debt was not incurred by the consumer) could violate the FDCPA. The FCRA is a federal law that promotes the accuracy, fairness, and privacy of consumer credit information. If a company reports inaccurate information about you to credit bureaus or fails to properly investigate your disputes after receiving notice of inaccuracy, they may violate the FCRA. Both laws allow consumers to seek actual damages, statutory damages (up to $1,000 for FDCPA), and reasonable attorneys’ fees and expenses for violations.
Q12: Should I hire a lawyer?
A12: Dealing with a lawsuit and navigating consumer protection laws is complex. An experienced consumer protection attorney can evaluate your case, determine your best defenses and potential counterclaims, handle communications with the opposing side and the court, and fight to protect your rights. Given that consumer protection laws often allow for the recovery of attorneys’ fees if violations occurred, hiring an attorney might be more affordable than you think, as the suing party could end up paying your legal costs. An attorney can also file counterclaims, such as for negligence, abuse of process, or violations of consumer protection acts, and seek declaratory and injunctive relief to have the alleged debt removed from credit reports.
