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Personal Loan Lawsuits
Personal lawsuits are common in Pennsylvania. These lawsuits are filed by non-bank finance companies, like OneMain Financial and Mariner Finance, and by debt buyers, like Velocity Investments, CACH LLC, and LVNV Funding.
If you’re getting sued by a non-bank finance company or a debt buyer in a personal loan lawsuit, call us for help. We charge flat fees and refund our fee if we don’t meet your goals. To get a free case review, call us or fill out our free case review form.
Let us answer your debt defense questions:
Why am I getting sued for a personal loan?
When consumers stop paying personal loans, banks and non-bank finance companies “charge-off” the account. A “charge-off” does not mean a personal loan is not owed. It’s simply an accounting procedure companies use to write debt off their books.
When banks and non-bank finance companies “charge-off” personal loans, they do one of two things. First, they may try to collect the debt on their own or through a third-party. Second, they may sell the personal loan for pennies on the dollar to a “debt buyer.” After debt buyers purchase discounted debt, they pursue collection in their own name.
Personal lawsuits are a collection tactic some non-bank finance companies and debt buyers use to get consumers to pay defaulted personal loans voluntarily. Most times, personal loan lawsuits are used as a scare tactic to push consumers to settle or agree to repayment plans.
How common are personal loan lawsuits?
Personal loan lawsuits are common in Pennsylvania. There are likely thousands of personal loan lawsuits filed each year in the Commonwealth.
The high cost of personal loans usually contributes the the number of lawsuits filed. Personal loans generally include various charges, fees, and “add-ons” (like credit insurance) that greatly increase the cost of the loan. On top of that, personal loans usually have high interest rates well over 20%. The high interest and fees that generally are applied to personal loans may contribute to consumers being unable to repay a personal loan.
Can I win personal loan lawsuits?
Personal loan lawsuits are winnable. And, if they are not, settlement often is a possibility. The chance of success in defending personal loan lawsuits is highly case specific. Relevant factors regarding your chance of success include:
Call us today or complete our contact form for a free case evaluation. We can evaluate your case and let you know your chance of success.
What happens if I lose a personal loan lawsuit?
If you lose a personal loan lawsuit, or if you ignore it, a “judgment” will be entered against you. A “judgment” is a legal decree that you owe the non-bank finance company or the debt collector what they claim you owe.
“Judgments” allow non-bank finance companies and debt collectors to engage in certain types of collection activity, including:
Bank account garnishments are the most used “post-judgment” collection tool. Some debt collectors, however, will simply use judgments to scare consumers into making payments.
What types of personal loans can turn into a lawsuit?
Most types of personal loans can turn into a lawsuit. We have seen lawsuits filed by non-bank finance companies and debt buyers on the following types of personal loans: