I never had an account with this company. Why are they suing me?

Most likely it bought an old account from your original lender, or from another company that bought it first. The papers usually name the original lender somewhere. If you don't recognize that account either, it may not be yours at all, or it may be identity theft.

Should I call the debt buyer to work it out?

Talking to them doesn't stop the lawsuit or the deadline. Anything you say on the phone, like "yes, that was my card," can be used to prove their case. Get advice first, and keep any deal in writing.

Can they really win if they don't have my original contract?

It depends on the case and on what else they can show. Missing or incomplete records can make it harder for them to prove you owe the debt or that they own it. That's something to look at closely before deciding what to do.

Will a debt buyer settle?

Settlement is often possible. A good settlement is in writing, says the lawsuit will be dismissed, and says what will be reported to the credit bureaus. Don't send money until you have that in hand.

Sued by Midland, Portfolio Recovery, or LVNV in Florida?

Debt buyer lawsuits · Anywhere in FloridaSued by a company you've never heard of? Make them prove it.

Midland, Portfolio Recovery, LVNV, and companies like them buy old unpaid accounts from banks and then sue to collect. Being sued by one doesn't mean you owe what they say. It means they have to prove it, and that you have a deadline to answer.

What is a debt buyer?

When a credit card or loan goes unpaid for a while, the bank often writes it off and sells it, often in a big batch with thousands of other accounts, for a small fraction of the balance. The company that buys it then tries to collect the full amount, sometimes years later, and sometimes by suing.

That's why the name on your court papers may not match any company you ever did business with.

Names you might see

These are some of the debt buyers Florida consumers commonly see on court papers and collection letters. Being listed here doesn't mean a company did anything wrong in your case.

Midland Funding or Midland Credit Management
Portfolio Recovery Associates
LVNV Funding (letters often come from Resurgent Capital Services)
Jefferson Capital Systems
Cavalry SPV or Cavalry Portfolio Services
Velocity Investments
Crown Asset Management

What they have to prove

A debt buyer is a stranger to your account. To win, it has to show the court three things:

The debt was yours. You opened the account, or agreed to be responsible for it.
The amount is right. The balance, interest, and fees match what your agreement allowed.
It owns your account. It needs records showing your specific account was sold from the original lender, through every company in between, to it. A general bill of sale that doesn't identify your account may not be enough.

Debt buyers usually rely on records they got from someone else, and those records are sometimes incomplete. That's often where a defense starts.

When the debt is too old

Florida limits how long a company has to sue over a debt. For many debts it's 5 years, for some it's 4, and for hospital bills it's 3. Federal rules also say a debt collector, which includes most debt buyers, isn't allowed to sue or threaten to sue on a debt that's past the limit. If one does, you may have a claim of your own.

Careful with old debts

A payment, even a small one, or a signed promise to pay can affect the time limit. Get advice before you pay anything on a debt you think is old. And if you're sued on one, you usually have to raise the time limit in your response. The court won't do it for you.

Their lawyer fees, and yours

Many card agreements say you have to pay the company's lawyer if it wins. In Florida that works both ways, even when a debt buyer is the one suing: if the agreement has that kind of clause and you win, you can ask the court to make the company pay your attorney's fees. If you lose, the company may add its lawyer's fees to what you owe.

What to do now

Find your deadline on the court papers. See how much time you have.
Don't pay or agree to anything over the phone. If you settle, get it in writing first, with the case dismissed as part of the deal.
Gather what you have: the court papers, any letters from the company, and old statements from the original card or loan if you have them.
Check your credit report. Debt buyers report to the credit bureaus too. If what they report is wrong, you can dispute it.
Get a free case review, and upload your papers from your phone.

What it costs

The case review is free. Fees for defending a debt lawsuit depend on the case. I explain your options, and every term is in writing before you sign anything.

Debt buyer lawsuits · Anywhere in FloridaSued by a company you've never heard of? Make them prove it.