How to Fight a Unifund Debt Collection Lawsuit in Fort Lauderdale

Being served with a lawsuit filed against you by Unifund CCR, LLC is a frightening experience. You will likely feel overwhelmed by the legal jargon contained within the notice and summons and may worry about how a lawsuit will affect your future.

Unifund is one of the biggest buyers of junk debt in the country, and its business model rests on the fact that the vast majority of borrowers will not respond to the lawsuit. If that is the case, they can obtain a default judgment and take legal action, even if you had a legal defense. A Fort Lauderdale debt defense lawyer can help you identify the defenses available in your case and give you the best chance of a successful outcome.

What is Unifund?

Unifund CCR, LLC, was founded in the late 1980s and is based in Cincinnati, Ohio, but they aggressively pursue borrowers in Fort Lauderdale and throughout the country. However, the company is one of the biggest buyers of debt in the country, and they often violate certain laws when trying to collect on that debt. Unifund purchases old debt from cell phone companies, hospitals and medical clinics, credit card companies, and other third-party debt collection companies.

For example, if you have a Chase credit card and do not make a payment for four months, the company will write off the debt and sell it to a debt collector, such as Midland Funding. Midland Funding will then sell that debt to Unifund CCR, LLC. By the time Unifund receives the debt, the statute of limitations has often run out, meaning the company has no right to take legal action on the debt. This is known as zombie debt but if you do not respond to the lawsuit, Unifund will still be able to successfully obtain a judgment against you.

Unifund Purchases Your Debt for Pennies on the Dollar

Like most debt collection companies, Unifund pays just pennies on the dollar for the debt they purchase. The original creditor is willing to let these large debts go for very little because they no longer have the supporting documentation necessary to legally collect on the debt. They simply provide Unifund with a spreadsheet that contains very basic information, such as your name and the amount the creditor claims you owe.

When any debt collector files a lawsuit against you, they must present significant evidence that proves the debt is yours, and that they have the right to collect on it using wage garnishment or other judgments. Creditors often lose this information and so, knowing they cannot collect on the debt, they will sell it to a third-party collector that believes they can. The spreadsheet that contains your name, as well as thousands of others, is not sufficient evidence to prove that Unifund can collect on the debt.

Generally speaking, debt collection companies purchase debts for approximately three percent of the total balance, so they make a profit of one dollar for every three cents recovered. Unifund also includes their attorney’s fees in their complaint against you, so they do not pay for those. David Rosenberg, CEO of Unifund, once said the company typically pays four to ten cents for junk debt, and that they recover an average of 20 cents. That equates to a profit between 150 and 200 percent, most of which is earned simply because debtors do not respond to the lawsuit.

How to Fight a Unifund Debt Collection Lawsuit in Fort Lauderdale

The vast majority of borrowers sued by Unifund do not respond to the lawsuit, hoping that ignoring the problem will make it go away. Unfortunately, this is not usually the way it works.

When filing a lawsuit against you, Unifund must prove:

• They are entitled to sue you
• You incurred the debt
• The total balance remaining that Unifund is trying to collect

If you can take action to protect yourself, it could save you thousands of dollars otherwise lost in a lawsuit. One of the simplest ways to do this is by forcing Unifund to prove the above aspects of their case. When working with an experienced consumer debt lawyer, you can file a sufficient answer and within the timeline outlined in the summons. Often, an answer is enough to protect you from the lawsuit and walk away from the case without paying anything.

Lawsuits involving junk debt can be resolved in several different ways. The case is dismissed by a judge, you agree to make a one-time payment that is a fraction of the amount Unifund is demanding, or the company may voluntarily drop its case against you. If you work with a qualified lawyer, you will have a much better chance of paying a smaller amount or none at all.

Debt collectors such as Unifund also run into evidentiary issues during the case, even when they have obtained the proper documentation from the original creditor. If the company wants to introduce account balances or statements from credit cards into evidence, a custodian of records must be able to testify under oath and provide details about how the records were obtained, compiled, and processed. In most cases, Unifund will not employ such a person who can speak to the authentic nature of the documents, meaning they are then inadmissible in court.

There are many defenses to a Unifund debt collection lawsuit. The statute of limitations may have expired, or the company may not be able to prove the debt is yours, or that they have a legal right to collect on it. Regardless of the defense that may be available, it is crucial that you speak to a lawyer. Some defenses are considered affirmative and must be included in your answer.

Our Consumer Debt Lawyers in Fort Lauderdale Can Help with Your Case

If Unifund has filed a lawsuit against you, our Fort Lauderdale debt defense lawyers at Loan Lawyers can provide the defense you need. We know the unethical tactics the company uses to collect on debt and have helped hundreds of borrowers successfully defend lawsuits. We want to help you, too. Call us today at (954) 523-4357 or fill out our online form to schedule a free consultation and to learn more about how we can help.