Many consumers wonder if they will get sued when dealing with a third party debt collector? This is a valid question due to the fact that there are so many credit card lawsuits going on in general. The fact is that it is rare for a third party debt collector to sue a consumer.
There are a few different reasons for this. First, a third party debt collector will almost never have a signed contract with you (the consumer) and the original creditor. This contract must exist and be signed and dated by all effected parties stating that all three parties are in agreement of the transfer of the debt to the third party debt collector. Without this signed agreement, the third party debt collector will not have a case that will stand up in court.
All that being said, if the consumer begins making payments to the third party debt collector, the debt collector will then make the argument that there was consideration even without a written agreement. This means that your actions show that you agree to make payments to the third party collector that in turn takes the place of the written agreement.
I am sure it makes more sense now why third party debt collectors are always trying so hard to harass consumers to make at least one payment. For the debt collector, this one payment is as good as a written contract!
Creditors on the other hand do have written agreements with almost all consumers they extend credit to. Because creditors have these agreements they are more inclined to sue if the cannot collect on the account in a less costly way.
Both creditors and third party debt collectors will be left with no choice other than to sue if the consumer sends them a cease and desist letter. In my experience I strongly discourage sending letters to cease and desist. They will almost always worsen your situation.
