Fair Debt Collection - California Lawyer

My Firm Defending Case Brought by Asset Acceptance and Goldsmith & Hull

My firm will be defending a collection lawsuit brought by Asset Acceptance, LLC through their attorneys (fellow debt collectors) Goldsmith & Hull, PC.  The case was brought in the Superior Court of California, County of Los Angeles, Torrance Division and seeks just over $10,000.

If you are sued by Asset Acceptance, Goldsmith & Hull, or any debt collector for that matter, it is crucial to get a free consulation with a consumer attorney as quickly as possible.  Failure to respond as instructed on the summons will likely result in a default judgment being entered against you, which is exactly what most debt collectors are hoping for when they sue a consumer, as it entitles them to possibly garnish bank accounts and wages. 

California residents can always contact my office via email (psmith@paulsmithlaw.com) or telephone (858-679-3396) for a free consultation.  Residents of other states should visit the National Association of Consumer Advocates website to locate a consumer attorney in your state.  To read what consumer advocate and credit expert Bud Hibbs has to say about Asset Acceptance, click here.

My Firm Defending Collection Case Brought by Palisades Collection, LLC and Patenaude & Felix

My firm will be defending another case brought by Palisades Collection, LLC through their attorneys (fellow debt collectors) Patenaude & Felix.  The case was brought in the Superior Court of California, County of Los Angeles, and seeks just under $6,000 for an alleged credit card debt.

My firm now almost exclusively handles defense of collection lawsuits and sues debt collectors for violations of the federal Fair Debt Collection Practices Act and California's Rosenthal Fair Debt Collection Practices Act.

When individuals are sued for an alleged debt, they should immediately consult with a consumer attorney.  The worst thing you can do is not respond (even if you think you may owe the alleged debt), because this allows the debt collector to obtain a default judgment, which may entitle the debt collector to garnish bank accounts or wages, and place liens on real property.

Consumers in California can contact my office via email (psmith@paulsmithlaw.com) or telephone (858-679-3396) for a free consultation.  Consumers outside California should visit the webpage for the National Association of Consumer Advocates to locate an attorney in their state.

Who is Unifund?

An article in the Cincinnati Business Courtier entitled Consumer debt? He loves it - Unifund thrives by taking on others' unpaid bills, to tune of $12 billion gives us some interesting insights into Unifund's business.

For example, the scope of their business:

Founded in 1986, Unifund is now the second-largest purchaser of U.S. consumer debt, with 2006 revenue of $375 million. And it's poised to get a lot bigger.

How much they pay for the debt they are collecting on:

Typically, [Unifund] pays no more than 10 cents on the dollar for accounts that other collection agencies have tried - and failed - to convert to cash. Then, [it] uses proprietary programs with code names like Avalanche and Iceberg to gather data on debtors. Sometimes, Unifund sues to collect. But usually it bundles accounts into salable commodities . . . . Collection agencies and law firms typically pay 20 cents to 30 cents on the dollar for Unifund accounts, transactions that let [Unifund] double or triple [its] original investment.

The article does mention Unifund's reputation:

Consumer activists like Budd Hibbs have criticized Unifund's tactics as overly aggressive. Hibbs, who bills himself as "America's Consumer Credit Expert" calls Unifund one of America's worst debt collectors at www.buddhibbs.com.

The problem not mentioned in the article is Unifund suing on debt for which it has paid almost nothing, and for which it has little to no documentation.  Unifund's involvement with alleged debts can also cause problems for consumers by Unifund purchasing and then reselling the alleged debt, again with little to no documentation. 

The bottom line is that consumers need to be extremely cautious if they come across an alleged debt with which Unifund is involved.  If sued by Unifund, immediately consult with a consumer attorney.  California residents can contact me at my firm via telephone (858-679-3396) or email (psmith@paulsmithlaw.com). for a free consultation.  Residents of other states can locate an attorney through the National Association of Consumer Advocates website.

You can read what Bud Hibbs has to say about Unifund by clicking here.

Erin Capital Management and Eltman, Eltman & Cooper Settle

Erin Capital Management and their attorneys (fellow debt collectors) Eltman, Eltman & Cooper have settled a federal lawsuit my firm filed against them for violations of the Fair Debt Collection Practices Act, agreeing to dismiss the state court collection lawsuit they filed against my client and pay an amount sufficient to cover all my attorney fees, all costs, and an additional amount to my client to compensate him for statutory and actual damages.

This is yet another case that demonstrates the importance of properly exercising your right to dispute an alleged debt, and obtaining representation to defend a credit card collection case and pursue claims, if such claims are viable, for violations of the Fair Debt Collection Practices Act.  Consumers must be careful to respond to lawsuits in a timely fashion and avoid having a default judgment entered against them.

If you have been sued by a debt collector, or if you have lawfully disputed an alleged debt and the debt collector has continued collection attempts without validating the debt in writing, you should obtain a free consultation with a consumer attorney.  California residents can contact me via telephone (858-679-3396) or email (psmith@paulsmithlaw.com) for a free consultation.  Residents of other states can locate an attorney by visiting the webpage for the National Association of Consumer Advocates.