Sued by Credit Corp Solutions? 5 Steps You Can Take Now.
Sued by Credit Corp Solutions? What You Should Do Now
If you have been served with a Florida lawsuit filed by Credit Corp Solutions Inc., you are not alone, and you have options. The most important thing you can do is act before your response deadline.
Who Is Credit Corp Solutions?
Credit Corp Solutions is a debt buyer and debt collection agency. On its own website, the company describes itself as a receivables management company that purchases and collects consumer debt, including unpaid retail finance and sales finance credit cards and personal loans, acquired from bank, finance, telecommunications, and utility companies.
According to the Florida Division of Corporations, Credit Corp Solutions Inc. is a Delaware corporation that has been registered to do business in Florida since November 2011. Its principal address is 121 W. Election Road, Suite 200, Draper, Utah 84020, and its directors are listed at an office in Sydney, Australia. The company is the U.S. arm of Australia-based Credit Corp Group.
The Consumer Financial Protection Bureau’s complaint database can be searched by company name to see current complaint information.
Tasman Credit Corp and Credit Corp Collections Agency
Credit Corp Solutions uses different trading names in different states. According to the company’s trading names page:
- Tasman Credit Corp in Alabama, Connecticut, Tennessee, Virginia, and Wisconsin
- Tasman Credit in New Hampshire and New York
- Credit Corp Collections Agency Inc in Indiana and the U.S. Virgin Islands
- Credit Corp Solutions Inc. in Florida and most other states
So if you live in Florida, the lawsuit and the collection letters will usually name Credit Corp Solutions Inc. If you recently moved here from one of the states above, older letters may show a Tasman Credit or Credit Corp Collections Agency name for the same account.
Why Did Credit Corp Solutions Sue Me?
When an account goes delinquent, the original creditor often charges it off and sells the debt to a debt buyer. If Credit Corp Solutions has sued you, it is most likely claiming that it bought an account you originally owed to a bank, retail finance company, or lender, and that it now owns the outstanding balance.
Because Credit Corp did not originate the account, its case depends on the records it received when it bought the debt. As the plaintiff, it has to prove that it owns your specific account and that the amount it claims is correct. Gaps in that chain of ownership, missing account statements, or a balance that includes charges you never agreed to are common issues in debt buyer lawsuits.
Is There a Class Action Lawsuit Against Credit Corp Solutions?
Consumers have filed federal lawsuits against Credit Corp Solutions in a number of states, including at least two proposed class actions in New York in 2017. One class action complaint (Neill v. Credit Corp Solutions, Inc., No. 1:17-cv-02689, S.D.N.Y., filed April 13, 2017) alleged that Credit Corp Solutions, doing business as Tasman Credit, failed to properly identify the original creditor and the amount of the debt. Another class action complaint (Farrell v. Credit Corp Solutions Inc., No. 2:17-cv-07142, E.D.N.Y., filed December 7, 2017) alleged that its letters did not clearly state how much the consumer needed to pay to satisfy the debt. These are allegations in complaints, not findings, and they do not decide anything about your Florida case.
Your Rights When a Debt Collector Contacts You
Debt buyers like Credit Corp Solutions are generally treated as debt collectors under the Fair Debt Collection Practices Act (FDCPA), and Florida adds its own protections under the Florida Consumer Collection Practices Act (Fla. Stat. § 559.72). Among other things, these laws:
- give you the right to request validation of the debt in writing within 30 days of the collector’s initial notice (15 U.S.C. § 1692g);
- prohibit harassment, false or misleading statements, and threats of action the collector cannot legally take; and
- allow you to recover damages and attorney’s fees if a collector violates them.
Collection activity can also show up on your credit report. If Credit Corp is reporting a balance that is wrong, or an account that is not yours, you have the right to dispute it with the credit bureaus under the Fair Credit Reporting Act. See our guide on disputing credit report errors.
How to Respond to a Credit Corp Solutions Lawsuit in Florida
1. Show Up and Meet Your Deadline
Don’t bury your head in the sand. Florida debt collection lawsuits are filed in small claims court (claims of $8,000 or less), county court, or circuit court, depending on the amount. In small claims cases, you are required to attend an early hearing called a pretrial conference. In county court and circuit court, you generally have 20 days from the day you are served to file a written response. If you don’t appear in small claims, or don’t respond in county or circuit court, the court will likely enter a default judgment against you.
2. Review the Claim
Next, review the complaint and any attachments. When a lawsuit is based on another company’s records, those records may be incomplete or inaccurate. Check whether the account is yours, whether the balance and fees are right, whether Credit Corp has shown how it acquired the account, and whether the last payment date suggests the claim may be outside Florida’s statute of limitations (Fla. Stat. § 95.11).
3. Consider Your Options
Look at the alleged debt alongside your other debts and your income. Is there a defense to the claim? Can you realistically afford a settlement or a repayment plan, or does it make more sense to consider bankruptcy? This is a good point to get a Free Debt Freedom Strategy Session (a free consultation with an attorney) so someone can review your options objectively.
4. Negotiate
If bankruptcy is not the right fit and depending on the merits of your case, negotiation may be the next step. If you hire an attorney, your attorney will negotiate for you. If you handle it yourself, keep in mind that Credit Corp’s lawyers are not looking out for your interests. They are unlikely to tell you about your defenses or the protections Florida law gives you. Their job is to get you to pay.
5. Get Any Settlement or Payment Arrangement in Writing
If you reach a settlement agreement or payment arrangement, even if you are representing yourself, get it in writing before you pay. The agreement should state the total amount, the payment schedule, and what happens to the lawsuit, and you should keep proof of every scheduled payment you make.
What If Credit Corp Already Has a Judgment?
A debt collector generally needs a court judgment before it can garnish your wages or freeze your bank account in Florida. If a judgment has already been entered, you still have protections. Florida law protects the wages of a head of family who provides more than half the support for a child or other dependent (Fla. Stat. § 222.11), and you generally have 20 days after being served with garnishment papers to file a claim of exemption (Fla. Stat. § 77.041). In some cases, a default judgment can be challenged. Learn more about wage garnishment in Florida.
Working With a Consumer Attorney
A consumer attorney can help you in ways that are hard to do alone:
- Knowledge of debt collection law: An attorney can explain your rights under the FDCPA and Florida law and identify defenses that apply to your case.
- Negotiation: An attorney can negotiate with Credit Corp’s law firm on your behalf toward a settlement or payment plan you can manage.
- Representation in court: If Credit Corp has filed a lawsuit, an attorney can file your response, challenge whether Credit Corp can prove it owns the debt, and appear for you.
- Protection from harassment: Once you have an attorney, the collector generally must communicate with your attorney instead of you, which can stop harassment from debt collectors.
Questions About Your Credit Corp Solutions Lawsuit?
Ziegler Diamond Law represents Florida consumers sued by debt buyers like Credit Corp Solutions. Call us at (727) 538-4188 or contact us online for a Free Debt Freedom Strategy Session (a free consultation with an attorney). We’ll review your lawsuit, your deadlines, and your options with you.
This article is general information, not legal advice. For Florida residents, contact Ziegler Diamond Law for a Free Debt Freedom Strategy Session.