## Debt-collection defense in California Most debt-collection lawsuits result in default judgments because consumers don't appear or fight. **This is a mistake** — consumers have strong defenses, and many lawsuits are won by defendants who simply show up and require collectors to prove their case. ## Federal protections **1. Fair Debt Collection Practices Act (FDCPA, 1977):** - Prohibits abusive collection tactics - Applies to third-party collectors (not original creditors) - Specific banned conduct (harassment, false threats, etc.) - Right to validation of debt - Right to sue for violations **2. Consumer Financial Protection Bureau (CFPB):** - Federal regulator - Reg F (debt collection rules) - Enforcement against major collectors - Consumer complaint database **3. Fair Credit Reporting Act (FCRA):** - Disputes credit-reporting issues - Inaccurate reporting → damages - Investigation requirements **4. Telephone Consumer Protection Act (TCPA):** - Robocall + autodialer restrictions - Statutory damages ($500-$1,500/violation) - Strong leverage in collection cases ## State consumer-protection laws **${s.name} likely has:** - ${s.name} consumer protection / unfair trade practices act - ${s.name} debt collection statutes (often parallel FDCPA) - ${s.name} usury laws - State licensing requirements for collectors - ${s.name}-specific harassment provisions Often **stronger remedies** than federal: treble damages, attorney's fees, statutory penalties. ## Step 1 — get the lawsuit + ANSWER **Critical first step:** Don't ignore the lawsuit. **Default judgment** = automatic loss → wage garnishment + bank levies + property liens. **File answer within deadline:** - Typically 20-30 days from service - Each ${s.name} county may have specific rules - Use court-provided form if available - Generally deny everything (force collector to prove) - Add affirmative defenses - Demand jury trial (sometimes) ## Common collector proof failures **Many collection cases fail because collector can't prove:** **1. Standing / chain of assignment:** - Original creditor sold to debt buyer - Sold again to second debt buyer - Each transfer needs documentation - Often missing pieces **2. Original contract / agreement:** - Card / loan agreement signed by you - Specific terms applied - Often impossible to produce **3. Account statements / accuracy:** - Complete payment history - Accurate balance calculation - Interest rate documentation **4. Identity / debt amount:** - That YOU are the actual debtor - That amount claimed is accurate - That fees are authorized **Demand documentation = often results in dismissal.** ## Affirmative defenses **1. Statute of limitations:** - Each state has limit on lawsuit timing - Credit card: typically 3-6 years - Written contract: typically 4-10 years - Open account: typically 3-6 years - ${s.name} has specific deadlines - Date of last activity matters - Reaffirming debt may restart clock - Some states: collector can't even SUE on time-barred debt (zombie debt) **2. Identity theft:** - Not your debt - Police report + FTC affidavit - Credit bureau dispute **3. Lack of standing:** - Plaintiff didn't actually own debt - Chain of assignment broken - Forced to prove ownership **4. Improper service:** - Not actually served properly - Service on wrong person - Timing defects **5. Discharge in bankruptcy:** - Debt previously discharged - Order needed **6. Settlement / accord and satisfaction:** - Already settled - Documentation needed **7. Failure to mitigate damages:** - Collector failed to minimize losses - Limited applicability **8. Credit card defenses:** - Improper interest / fees - Statement violations - Account opened fraudulently **9. Usury:** - Excessive interest rate - ${s.name} usury law - Federal preemption issues **10. UCC defenses (loans):** - Notice violations - Repossession improprieties - Resale calculations ## Counterclaims **Don't just defend — COUNTERSUE for collector violations:** **FDCPA violations:** - $1,000 statutory damages + actual damages + attorney's fees - Per consumer (not per violation, but multiple consumers possible) - Even minor violations actionable **Common FDCPA violations:** - Failure to validate debt - False statements about debt amount - False threats of legal action - Calling work after told not to - Calling before 8AM / after 9PM - Discussing debt with third parties - Failing to identify as debt collector - Misrepresenting consequences of non-payment - Suing on time-barred debt (some courts) - Not licensed (where required) **State law violations:** - ${s.name} consumer protection / debt collection violations - Often more remedies (treble damages, penalties) - Plus attorney's fees **TCPA violations:** - $500-$1,500 per call/text - Robocalls without consent - Calls to cell phones - Adds up quickly **Multiple counterclaims often exceed original debt.** ## Discovery process **Force collector to produce:** - Original signed agreement - Complete chain of assignment - All bills of sale - Account statements - Payment history - Affidavits / declarations - All communication records **Common discovery problems for collectors:** - Records not actually produced - Affidavits unsigned / unsworn - Chain documentation missing - "Robo-signed" affidavits - Hearsay issues ## Trial and motion practice **Motion to dismiss:** - Pleading defects - Standing issues - Sometimes effective early **Motion for summary judgment:** - After discovery - No genuine issues of fact - Push collector to prove case **Trial:** - Bench / jury trial - Hearsay rules apply - Often can defeat collector's case ## Settlement strategies **Once defended, leverage shifts:** - Collectors prefer to settle - Often settle for less than asking - Lump-sum settlements common - Payment plans possible - Negotiate "deletion" from credit report **Settlement principles:** - Get agreement IN WRITING before payment - Insist on full release - Insist on credit reporting changes - Cashier's check / wire (don't share account info) - Confidentiality usually OK ## Garnishment + bank levies **If judgment entered:** - Wage garnishment (federal limits + state limits) - Bank account levies - Property liens - Property seizure (rare for unsecured) **Exemptions ${s.name}-specific:** - Specific income amounts protected - Public benefits protected (federal) - Specific property exempt - Head-of-household protections sometimes - Bank-account protections ## Bankruptcy as nuclear option **If judgment + ongoing collection issues:** - Chapter 7 discharges most consumer debt - Chapter 13 manages payments + protects assets - Automatic stay stops collection - Strategic timing often beneficial - Costs $1,500-$5,000 typical **Often better than fighting endless collection.** ## Common mistakes - **Ignoring lawsuits** (default judgment automatic) - **Admitting debt** in conversation - **Making partial payments** (may restart SOL) - **Talking to collectors** without legal advice - **Confirming address / SSN** to validate identity - **Settling without writing** before paying - **Not requesting validation** in writing - **Going past deadline to answer** - **Not preserving harassment evidence** ## What you should do If you've been sued for a debt in California: ANSWER the lawsuit immediately (don't ignore!), and consult a consumer / debt-defense attorney. Many California consumer attorneys offer free consultations. FDCPA / TCPA / state-law counterclaims often pay attorney's fees, making representation affordable. Document everything (calls, letters). Don't pay anything without written agreement. --- *This guide is general information about federal + California law as of mid-2026 and is not legal advice. Debt collection cases are time-sensitive. Talk to a licensed California consumer attorney about your specific situation.*