Information & Advice if Getting Sued by a Creditor
- FDR has a good track record of assisting customers sued by a creditor.
I am currently enrolled in a debt settlement program and two creditors have filed a lawsuit. Will the company help me?
I went with FDR last February and have only paid off one debt. I currently have 2 debtors that have filed a lawsuit against me and I need to know what happens in such a case. Do they get a judgment against me or does FDR do something?
When you refer to FDR, I assume that you are talking about Freedom Debt Relief. Based on my past experience with debt negotiation firms like FDR, some are better than others when it comes to assisting customers who are facing legal action filed by their creditors. Thankfully, FDR has a good track record of assisting customers sued by a creditor while enrolled in its debt negotiation program.
The first thing that I would recommend that you do, if you have not already done so, is contact FDR as soon as possible to let them know that these lawsuits have been filed against you. Once they are made aware of the lawsuits, FDR will likely contact the attorneys representing these creditors to discuss possible options available to stop these lawsuits from proceeding. For example, if you have adequate funds available to negotiate a settlement with one or both of the creditors, the lawsuits can hopefully be resolved through settlement before they proceed any further. If you have not yet accumulated adequate funding to settle with these creditors, FDR will likely try to negotiate a payment arrangement with the creditors’ attorneys to stabilize the situation. If your funding allows for a settlement of the accounts in question, then it is possible that they will be settled prior to the court entering judgments against you. In cases where a payment arrangement is needed, the creditor may proceed with obtaining a judgment against you to guarantee that payments are made, but it should not take any action to enforce the judgment as long as payments are timely. Whether to settle the accounts or to negotiate payment terms, I would expect that FDR will work with these attorneys to try to prevent these lawsuits from escalating any further. For more information about debt negotiation and settlement services, I encourage you to visit the Bills.com debt negotiation page.
I have worked with FDR in the past and know that only a small percentage of the accounts enrolled in the FDR program have legal action filed by the creditor to collect the balance owed. In the vast majority of cases, creditors will pursue standard collection tactics, such as sending accounts to collection agencies, while the consumer builds funds to negotiate settlements. However, for that small percentage of accounts that do end up in litigation, FDR has a dedicated team of legal account specialists who focus on resolving these accounts before the creditor can take further action against the consumer to enforce the debt. If you have not already spoken with FDR’s legal accounts team, you should definitely contact them to advise them of the situation you are facing so they can begin working to resolve these lawsuits. They may also be able to provide guidance as to the legal process in your state and what resources are available to you to help you with responding to these lawsuits.
I strongly encourage you to maintain frequent communication with FDR so that you know what progress is being made in the negotiations to resolve these lawsuits. FDR should be able to tell you what options the creditors are offering to resolve these accounts, and in a worst case scenario, discuss alternative options with you if the options being offered by the creditors are not affordable. From my experience, the negotiators at FDR are skilled in resolving such accounts, and I would fully expect that that they can work with you to manage the difficulties you are currently facing.
I wish you the best of luck in resolving these lawsuits, and hope that the information I have provided helps you Find. Learn. Save.
Did you know?
If you are struggling with debt, you are not alone. According to the NY Federal Reserve total household debt as of Quarter Q4 2022 was $16.91 trillion. Student loan debt was $1.60 trillion and credit card debt was $0.99 trillion.
According to data gathered by Urban.org from a sample of credit reports, about 26% of people in the US have some kind of debt in collections. The median debt in collections is $1,739. Student loans and auto loans are common types of debt. Of people holding student debt, approximately 10% had student loans in collections. The national Auto/Retail debt delinquency rate was 4%.
Collection and delinquency rates vary by state. For example, in Connecticut, 17% have student loan debt. Of those holding student loan debt, 6% are in default. Auto/retail loan delinquency rate is 2%.
To maintain an excellent credit score it is vital to make timely payments. However, there are many circumstances that lead to late payments or debt in collections. The good news is that there are a lot of ways to deal with debt including debt consolidation and debt relief solutions.
So Freedom Debt Relief told me that I need to call the court and ask them for extension because I do not have money in my dedicated account. But I was under the impression that their lawyers will talk to court even though I did not have enough money. If I was communicated that I had to go to court I would have never gone with this company. I feel like I was blind sited. I even called them when Discover offered me settlement they said that I need to send them to sue me. This is so not right. I am very disappointed at this company.
Thank you for reaching out to us today. We have notified upper management of Freedom to address your concern. One of their experienced representatives will be reaching out.