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Author: Sergei Lemberg
Can I File a Countersuit Against a Collection Agency?
![File Countersuit Collection Agency]()
General Rule: Yes, if a collection agency files a lawsuit, you have the opportunity to countersue them. This may be for violations of various federal laws, including the FDCPA.
When a collection agency takes over an account, sometimes the courts get involved. This may result from either party filing a lawsuit. However, many ask what they can do if a collection agency files a lawsuit against them.
It’s important to note that just because a collection agency sues you, it does not mean they are in the right. The lawsuit may have no merit. In fact, in some situations, they may have violated the law. For example, a collection agency has a responsibility to abide by the Fair Debt Collection Practices Act (FDCPA).
If you receive a lawsuit from a collection agency, you have rights. In some cases, you may even consider filing a countersuit. In this article, you will learn how and when you should file a countersuit when a collection agency sues you.
I Was Just Sued: What Should I Do?
Before you react it’s important to understand why a collection agency sued you. You can do this by reading the summons and complaint you received. This will inform you about the nature of the lawsuit and provide any evidence to support the lawsuit.
Before you contemplate filing a countersuit, you must first determine how to respond to the complaint. The complaint may be complex or for a large debt. Before you get too far along you may want to consider hiring an attorney. They can assist you in responding to the complaint, including a potential countersuit.
Note: The FDCPA contains a fee-shifting statute. If your countersuit is successful, the debt collector must pay your court costs, including attorney fees.
Countersuit: Did the Collection Agency Violate the FDCPA or Other Law?
If a debt collector files a lawsuit, you have the option to file a countersuit, if justified. Here are some reasons to file a countersuit in direct response to a lawsuit.
- Harassment. If the collection agency files a frivolous lawsuit to harass you, you have grounds to file a countersuit.
- Disputed Debt. You may have timely disputed a debt and the collection agency failed to provide proof of your debt. This is another justifiable reason to file a countersuit.
- Statute of Limitations. If the statute of limitations expires, a debt is no longer legally enforceable.
Of course, if the collection agency violated the FDCPA during their collection efforts you may consider filing a countersuit. That means, even if a collection agency has a legitimate lawsuit, you may also have a valid countersuit.
Some examples of FDCPA violations that you may file a countersuit for include the following:
- Publicizing Your Debt. During their collection efforts, a debt collector may have disclosed your debt to others.
- Deception. For example, a collection agency may have misrepresented themself to you or given you the wrong information about your debt.
These are just examples from the FDCPA. You may file a countersuit under other laws. Some examples include the Fair Credit Reporting Act and the Telephone Consumer Protection Act.
How to File a Countersuit
In preparing your countersuit, you must provide a detailed justification for it. In addition, you must provide evidence that supports your countersuit. For instance, your countersuit may allege that you disputed the debt. Provide a copy of the letter you sent to the collection agency and any evidence of their receipt.
If your countersuit is successful, under the FDCPA, a court will award you up to $1,000 in statutory damages. In addition, you can request compensation for any damages you suffer due to the debt collector’s violation.
In addition to filing a countersuit, there is additional action you can take. For instance, you can notify a federal agency about any collection agency violations. When a collection agency violates the FDCPA, you can submit a complaint to the Federal Trade Commission (FTC). You can also report the collection agency to the Consumer Financial Protection Bureau (CFPB).
Conclusion
If a debt collector files a legitimate lawsuit, consider finding a way to settle the matter. However, there are many instances when the collection agency is in the wrong. When this happens, you have the option of filing a countersuit.
If you need someone to represent you or prepare the countersuit, hire an attorney who specializes in consumer rights. They can help prepare the best defense and aggressively pursue the collection agency for any wrongdoing.
Additional Resources
About the author:
Sergei Lemberg is a consumer rights attorney, practicing since 2006, whose practice focuses on consumer law, class actions and personal injury litigation. He is known for a United States Supreme Court case (Facebook v. Duguid) defending consumers from autodialers under the Telephone Consumer Protection Act of 1991 to send unsolicited text messages. He is also the author of Defanging Debt Collectors, a book that teaches consumers how to battle debt collectors and win.
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