Can banks get sued for sending your debt to collectors?

You can file a lawsuit against an entity that delegated your debt to collectors but only on certain occasions. The action itself is perfectly legal unless done for the wrong reasons. If you paid your dues and have nothing else to pay back, then there’s no reason for collectors to deny payment.

If they do anyway, you can sue a bank or other entity that sold your debt to collectors. It’s important to oppose these things because not only do you suffer from annoying collectors, but it’s also your credit score that suffers. And if your payments are up to date, you can suffer the consequences of someone else’s false reporting.

A successful lawsuit can result in the reversal of debt collection, as well as damages repayment, punitive damages against the company, as well as the coverage of attorney fees. It is a nuanced process, but if you can prove that your debt is no longer existent or that you’re up to date on its repayment, you should take action.

There are clear laws that protect your rights in this regard, and if you need further counseling on this subject, don’t hesitate to call us.

Read the full version of the original article here: https://consumerattorneys.com/article/can-i-sue-a-company-for-sending-me-to-collections

Also your can read more about: 

• What are credit reporting errors?

• How to find all your debts

• Can a collection agency report to the credit bureau without notifying you?