Tom McCutcheon – Attorney at Law
Midland Funding and Portfolio Recovery buy junk debt that has been written off from various creditors that typically issued a credit card. These two businesses probably file more small claims cases in Alabama than any other debt collector.
If you are served with a lawsuit from them, answer it immediately. You only have a short time to do so. Check the box that says you deny owing the debt and do not allow these companies to win by default simply because you didn’t to respond or you didn’t know how to respond. Remember that these companies have bought debt that is old and a lot of it is beyond the statute of limitations.
It’s really better if you get a letter about this type of debt because then you get to dispute the debt under the Fair Debt Collection Practices Act. Write a letter within 30 days that says this:
“I hereby dispute the debt and demand written proof that I owe the debt including documents that bear my signature.”
That puts the ball back in their court and a lot of times, they don’t have the proof they need. I think the judges in our area are pretty sympathetic to debtors that ask for proof of the debt because often when a suit is filed on old junk debt it’s hard to tell how it originated or who sold the bad debt. I would also ask for proof that they bought the debt from the original creditor. That might include a bill of sale or a bill of transfer but if they can’t prove they are the legal owner of the debt, then they have no right to sue for the debt.
Don’t let these guys win without providing the proof they have to have to win their case. A lot of times, they don’t have that proof or if they do have it, it’s so old that it is beyond the statute of limitations and can’t be legally collected.
We have seen cases where a husband and wife who later divorced have received collection notices for charges that were made after the divorce and do not bear the signature of the person being charged with the debt. Remember if you receive a letter, you need to respond and if you receive a lawsuit, you must respond.
Buckle up and drive safely.
McCutcheon & Hamner, P.C.
2210 Helton Drive
Florence, Alabama 35630
Telephone: 256-764-0112
Facsimile: 256-764-1124
