These problems are especially common now because many big companies that loan money also have interests in insurance businesses. If the creditor's employees made false promises that the creditor would not repossess the collateral if certain payments were made, you can hold the creditor to these promises. Debt collection tactics Even when your primary concern is repossession, a debt collection lawsuit or a foreclosure, do not forget to consider earlier debt collection contacts. If these earlier contacts were illegal, they will form the basis for legitimate claims against the creditor or collector. Attempts to enforce a court order or security interest You may have problems with the way a creditor attempts to collect on a judgment, repossess a car, seize household property, foreclose on a home, evict you or terminate utility service.
Creditors often are sloppy in the way they sue, garnish wages, repossess or seize property.
Their failure to follow proper procedures may lead to legal claims. In most states, these claims give rise to damage awards. Sometimes raising all your defenses and counterclaims to a collection lawsuit will both cancel your debt and result in a cash recovery for you and your attorney. When she took out the loan, she was told the interest rate would be 8 percent, but the actual rate from a finance company was 15 percent. Also, the car never worked properly.