Sued by a Debt Collector in California? First Five Steps

Being served with a lawsuit over a credit card or an old debt is stressful, especially if the plaintiff is a company you never did business with. The good news is that collection cases are often weaker than they look. Here are the first five steps to take.

1. Find your deadline

In California you generally have 30 calendar days after personal service of the summons and complaint to file a written response with the court. If you were served another way, the deadline may be later. Write the date down. If you miss it, the plaintiff can ask for a default judgment without any hearing on the merits.

2. Do not ignore it, and do not rely on phone calls

Talking with the collection law firm does not stop the clock. Unless you have a signed agreement giving you more time, only a filed response prevents a default.

3. Look at who is suing and when the debt went unpaid

If the plaintiff is a debt buyer, it must be able to prove that it owns your account and how much is owed. California's Fair Debt Buying Practices Act requires debt buyers to have specific information and documents before suing. Also check the date of your last payment. For most credit card debt, the statute of limitations is four years (Code of Civil Procedure section 337), and suing on time barred debt is prohibited.

4. Write down how the collector has treated you

Repeated calls meant to harass, threats, calls to your workplace after being told to stop, or false statements about what will happen can violate the federal Fair Debt Collection Practices Act or the California Rosenthal Act. Keep call logs, voicemails and letters. These violations can support claims of your own and often change the settlement discussion.

5. Decide on a strategy

Depending on the facts, the best path may be to fight the case, negotiate a reduced lump sum or payment plan, or file a cross complaint for collection abuses. If the debt is large or you have many debts, it may also be worth discussing other options. An attorney can help you weigh the cost of each option against the likely result.

Already have a judgment against you?

If you were never properly served, or if there were other problems, it may be possible to set the judgment aside. Even when the judgment stands, California law exempts part of your wages and certain bank funds from collection. Act quickly, because some deadlines are short.

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