| Many debt collection cases will disappear if the alleged debtor files an answer (in court) to a debt collection complaint. Filing answers is relatively simple and doesn't cost anything. Depending on the jurisdiction, filing an answer basically puts the brakes on the case because it is not worth it for the debt collector to pursue it any further. Their business model is based on default judgments. Eventually, after a year or so, if no action has been taken, the court is likely to dismiss the case (or you can ask them to). Also, debt collection law has a lot of federal consumer protections and often more protections at the state level. Thus, it is not uncommon to run into debt collectors that are violating fed or state laws. Raising such issues also makes the case go away. Of course, your mileage may vary depending on local laws and the nature of the debt or contract breach. But when I practiced little people law (before I sold out and went into IP law) I did this a few times and it worked without issue. Thinking about it now, I guess a debtor-side lawyer should be involved, but defending such cases require hardly any effort on the part of the lawyer, so again I wonder why there are not debt relief orgs doing this. I believe fighting back just a little would significantly reduce the predatory practices of the volume debt collectors. I imagine debt relief agencies don't fight because I think many are funded by the credit industry. So they direct debtors into payment plans rather than trying to shut down the predators. |
Or they require money up front to help you. They already know you are (likely) a default risk, so “cash in advance, please”. And as you allude to, a lot of times the “real” value in services like this is relief from the stress of the calls and letters. They’re not passionately involved or connected, they just have the calls directed to them and put up with it and give you a settlement offer that you could have reached in the first place.