Receiving constant letters and phone calls from Nationwide Credit is extremely frustrating. That frustration can quickly turn to panic if the company threatens to file a lawsuit against you. However, it is important to remain calm. If you panic, it may cause you to take actions that could hurt your case. Or, it could prevent you from doing anything at all, which is just as harmful. Below, our Fort Lauderdale debt defense lawyer outlines your rights and what to do if Nationwide Credit contacts you.

What is Nationwide Credit?

Nationwide Credit is a third-party debt collection agency based in Alexandria, Virginia. As their name suggests, though, they do business throughout the entire country. The company also contacts borrowers on behalf of creditors, which provides them with an extension to the call centers for the creditor. The company also goes by the name NCC, which stands for Nationwide Credit Corporation. The company has been in business for the past five decades.

If the company has contacted you, it is likely because they have purchased your account from the original creditor and are now trying to collect it from you. Nationwide Credit collects many different types of debt including:

• Utility debt
• Medical debt
• Credit card debt
• Tax debt

So, if Nationwide Credit is contacting you, it is likely because they believe you owe one of the above forms of debt.

Nationwide Credit and the Better Business Bureau

The Better Business Bureau has given Nationwide Credit an A+ accreditation rating, but several complaints have also been lodged against the company. There have been 23 complaints against Nationwide in the last three years, and ten complaints closed within the last 12 months. Many complaints against the company have also been filed with the Consumer Financial Protection Bureau (CFPB).

One of the most egregious complaints involves a tax debt. A consumer reported that they had received a letter stating there was a tax lien and demanded payment. The letter stated that the borrower’s employer had been contacted and told to garnish 100 percent of the borrower’s income until the tax debt was paid off in full. This is a very serious violation of the Fair Debt Collection Practices Act (FDCPA), a federal law that protects consumers.

The FDCPA

Under the FDCPA, debt collectors are prohibited from using certain tactics when trying to collect a debt. The law was enacted to protect consumers and ensure they are treated fairly and honestly. Some of the laws in the FDCPA are as follows:

• Debt collectors cannot use deceptive, false, or misleading representation to recover a debt. They cannot lie, or threaten you with an arrest or wage garnishment unless they intend to follow through with the threat.
• Debt collection agencies cannot mistreat you as a consumer. They cannot ask you for postdated checks to scare you, ask you to pay more than you owe, or communicate with you about the debt using a postcard.
• Debt collection agencies must validate the debt they are pursuing within five days of contacting you. They must prove the amount of debt you allegedly owe, the current creditor, a statement of your rights to dispute the debt, and other pertinent information.
• Debt collectors cannot call you before 8:00 am or after 9:00 pm local time.
• Debt collection agencies cannot use profane or threatening language when attempting to collect a debt.

The above are just a few of the most important laws contained in the FDCPA. If Nationwide Credit has violated any of the laws, you can file a lawsuit of your own against them. If you are successful with your lawsuit, you can claim up to $1,000 in statutory damages, as well as any loss you suffered as a result.

What to Do if Nationwide Credit Sues You

If Nationwide Credit has filed a lawsuit against you, you must respond to it. Ignoring the lawsuit will not make it go away and worse, it may result in you automatically losing your case. Nationwide Credit will likely pursue a default judgment against you, which can result in them garnishing your wages, levying your bank account, and other harsh consequences.

You can take certain steps to prevent this from happening and they include:

• Respond: You must respond to the allegations Nationwide Credit has made against you in the lawsuit and respond to each of them. Review the complaints carefully and indicate if you agree or deny the allegations, or if you do not have any knowledge of them.
• Raise defenses: If you have defenses in your case, such as being the victim of identity theft or having already paid the debt in full, you must raise them in your response. If you do not do this, you cannot raise your defenses later.
• File your answer: In Florida, you have just 20 days from the date of receiving the complaint to respond to the lawsuit. Failure to do this will likely result in a default judgment being obtained against you.

Settling the Debt

If you can reach a debt settlement agreement with Nationwide Credit, you can pay only a portion of the debt, but you will typically have to pay it in one lump sum. In most cases, you will have to pay at least 60 percent of your debt. If you reach an agreement, Nationwide will drop its legal claims against you and will release you from paying the remaining balance. This can help you avoid judgment and wage garnishment.

Our Debt Defense Lawyer in Fort Lauderdale Provides Sound Legal Advice

If Nationwide Credit, Inc. has been contacting you, you must speak to a Fort Lauderdale debt defense lawyer to ensure your rights are upheld. At Loan Lawyers, we will review the facts of your case, prepare the strongest defense that will give you the best outcome, and advise you of your options. Call us now at (954) 523-4357 or contact us online to request a free consultation with one of our experienced attorneys and to get the information you need.