Debt Collection Defense Law
Hollywood, Florida

The vast majority of the lawsuits filed in the County Court system are for what is known as “junk debt.”  Junk Debt is a multi-billion dollar industry involving charged-off debt which is often sold to large investors or similar enterprises for pennies on the dollar in the hope of turning a lucrative profit. The junk debt buyer is permitted to collect upon or sue for the entire value of the debt, not just what they paid for it. These "junk debt buyers" purchase large portfolios of delinquent or charged-off accounts from credit card companies, or even other collection agencies.

These companies fall under the Fair Debt Collection Practices Act, 15 U.S.C. § 1692, definition of a "collection agency" and are subject to all penalties therein. As the visibility and profitability of this rapidly expanding new industry has grown, junk debt buyers range in size from small private businesses up to multi-million dollar, publicly traded Wall Street companies. Credit card debt accounts for nearly 70% percent of the accounts sold to junk debt buyers, followed by auto loans, telecommunications debt and retail accounts. If the junk debt buyer is unsuccessful in collection upon the debt after systematically harassing you with letters and telephone calls, they will often resort to the filing of a lawsuit against you.

Based upon Mr. Owens legal experience in this industry, he believes that almost 85% percent of the lawsuits being filed in Broward County and Palm Beach County are completely defective and totally defensible! Unfortunately, the bottom-feeders win the 80%-90% percent of the time because people do not bother to show up to Court or are simply not aware of their legal rights. Once a judgment is entered against you, your wages and bank accounts are subject to garnishment and your vehicle and other personal items may even be seized and sold at auction to satisfy the judgment (debt).

Junk debt buyers generally buy alleged debts for cents on the dollar and then attempt to find ways to collect on the debt. Often times, the debt is "time-barred" (That is, the statute of limitations on it has expired and it no longer legally needs to be repaid). The buyer then attempts to get the debtor to pay a small portion of the debt. If the debtor does so, they have reaffirmed the debt and started the statute of limitations over again. It is very important that consumers be aware of their rights and the laws that protect them as an alarmingly large number of these debt buyers are barely operating within the law. Many consumers often ask, What is the Statue of Limitations for my debt? Unfortunately, there is no hard and fast rule. While some lawyers often state the general rule that the Statue of Limitations in Florida is 4 or 5 years depending upon the nature of the debt, Attorney Owens does not agree. In fact, he has successfully argued that many debts are time-barred if only 3 years have gone by from the consumer's last date of payment - and in some cases only two years!

Frequently in these situations, the junk debt buyer will use the practice of "re-aging" an account which basically means that they report it as more recent than it really is. In addition to a Statute of Limitations defense, many consumers will also have additional legal defenses, such as the failure of the debt buyer to comply with what is known in the law as a "condition precedent". This means that if the person suing you failed to follow a certain procedure or perform a particular act, a competent lawyer can have your entire lawsuit dismissed.

Finally, many debt collectors, especially the junk debt buyers, may have difficulty proving details regarding a debt. In Florida, every Plaintiff in a civil case has to prove their case by a preponderance of the evidence, often referred to as the "burden of proof." Junk Debt Buyers are often unable to meet this burden due to a lack of paperwork, the fact that the debt was previously paid off, or an unrelated act, such as identity theft.

Most importantly, never ignore the lawsuit even if you do not recognize the party suing you. If you do not defend the lawsuit, you lose - plain and simple. Always consult an attorney to apprise you of your legal rights.

“At Cohen & Owens, we do not work from 9-5;

we work from beginning to end.”