Guide to Being Sued by Cavalry in South Florida

Cavalry is one of the biggest debt collection companies out there and if you have received notice that they have filed a lawsuit against you, it is easy to panic. However, you mustn’t do. Panic often leads to ignoring the problem, which is the worst possible action to take in this situation.

The chances are good that Cavalry does not have the documents necessary to demonstrate that you owe them money, and they are counting on you to ignore the lawsuit, making it easier for them to recover money they may not be entitled to. If you live in South Florida and have been notified of a lawsuit being filed by Cavalry, below is a guide that will tell you everything you need to know before you proceed.

What is Cavalry?

Cavalry is a debt collection company, but they are not just any debt collection company. They are one of the biggest buyers of debt in the country. The company purchases old debt from anyone such as retailers to credit card and smartphone companies. For example, if you have a credit card with Wells Fargo and have not made payments in 120 days, the bank will write off the debt and sell it to a debt collection company. Cavalry is one of the biggest ones they use. Along with your debt, the bank will also sell other debts in a bundle, getting rid of many debts at once.

Cavalry goes under many different names, including Cavalry Portfolio Services and Cavalry SPV. If you see any of these names within the lawsuit package, you are being sued by Cavalry.

What is the Amount Cavalry Pays for the Debt?

People are shocked to learn how little the bank sold their debt to a collection company for. When people say that debt collectors purchase old debt for very cheap, they are not lying and it is not an exaggeration.

Companies such as Cavalry typically pay three percent of the total debt when they purchase old debts from big banks. That means they make approximately one dollar for every three cents they invest. Of course, these companies incur attorney’s fees too, when they are pursuing the debt, but they also do not pay those. Instead, they include them in the demand amount outlined in the lawsuit, so you pay their attorney’s fees to sue you.

This is why it is so important to fight back when a debt collector threatens to take legal action against you. Most of the time when debt collectors purchase old debts from big banks, they receive only a minimum amount of information. This information includes your name, contact information, and the final balance you owe. This is not enough for them to prove their case. However, they are hoping that your case never gets to that stage because you ignored the lawsuit.

What to Do After Cavalry Takes Legal Action

The number of people who ignore a lawsuit filed by Cavalry is shocking, and includes approximately 96 percent of people who are sued by the company. The problem is that if you ignore the lawsuit, you cannot take the necessary action to protect yourself.

In order to be successful with their lawsuit, Cavalry has the legal burden to prove:

• They have the right to file a lawsuit against you, which means they are the owners of the debt,
• You owed the debt to begin with, and
• The total amount owed

The easiest way to defend against a lawsuit filed by Cavalry is to force them to prove their case. To do this, you must file an answer to the lawsuit that is considered legally sufficient. You only have a limited amount of time to file your answer to the lawsuit, and the deadline for filing your answer will be outlined in the summons. Just by filing an answer, you can give yourself a better chance of being successful in your case against Cavalry.

Lawsuits such as this are usually resolved in one of three ways. The first is that your case gets dismissed by a judge. The second is that you may be able to settle your debt for a one-time payment that is equal to one-quarter to three-quarters of the amount demanded by Cavalry.

If you use a qualified attorney when answering the lawsuit, you will give yourself a much better chance of settling your case for an amount that is less than what you currently owe. There are evidentiary problems Cavalry usually runs into, even if they have the necessary documents to support their arguments. For example, if the company tries to introduce any account balances or credit card balances, they must have a records custodian present who can provide testimony about where the information came from, and how the records were processed and compiled.

A debt defense lawyer can stop any lawsuit from proceeding by showing:

• Cavalry cannot prove you owe the debt
• The time limit to file a lawsuit has expired
• Cavalry cannot prove how much you owe
• Cavalry cannot prove that it has the legal right to file a lawsuit against you
• Evidence is inadmissible
• Documents were robe-signed
• There are false affidavits about the debt
• Cavalry violated the Fair Debt Collection Practices Act

After fully reviewing the facts of your case, a debt defense lawyer will advise on the defenses available, and how they apply to your case.

Our Debt Defense Lawyers in South Florida Can Help with Your Case Against Cavalry

If Cavalry has filed a lawsuit against you to collect their debt, our South Florida debt defense lawyers can help with your case. At Loan Lawyers, we have helped hundreds of clients fight these lawsuits, and we want to help you, too. Call us today at (954) 523-4357 or contact us online to schedule a free consultation with one of our skilled attorneys and to learn more about how we can help with your case.