How to Settle with Lloyd and McDaniel Collection- All You Need to Do!

Home Foreclosure after Chapter 13 Bankruptcy

Lloyd and McDaniel is a collection law firm that represents debt buyers and lenders. They are listed as one of the top law firms in the nation and listed by Thomson Reuters in SuperLawyers. When this was written in 2020 one of their local attorneys for this firm was the son of a former federal bankruptcy court judge.

They primarily represent debt buyers and lenders who sue on defaulted loans. Debt buyers collect on debts they purchase for sometimes less than a penny on the dollar from the original lenders. They collect and sue for the original amount plus interest and fees, which can be in error. This affects the credit report of credit card owners.

Lloyd and McDaniel- Company Profile

Lloyd and McDaniel were established in 1952 and currently, 2022 has 91 employees. Their debt collection office is located in Louisville, Kentucky on Hurstbourne Road north of Shelbyville Road. Moreover, the company is operated by James Lloyd & Greg Taylor and has a B rating with the Better Business Bureau.

The Settlement with Lloyd and McDaniel

If you are sued you have a choice. You can file an answer, file bankruptcy, obtain a settlement, or sue the creditor or collector back. How do you determine whether to settle, file bankruptcy, or fight the lawsuit? How do you determine how much a reasonable settlement with Lloyd and McDaniel? Personally, I hate to pay a collector back any amount. I prefer filing bankruptcy. Paying a collection makes your credit report worse in the short run. Paying defaulted debt tends to encourage them to purchase and collect the charged-off debt.

Even if you repay the debt for 50%, the debt buyers make a profit in purchasing your account. Settlement encourages debt collectors to purchase charged-off accounts, sue, and collect. Still, a settlement is necessary at times because litigation is not always practical.

Case Example

In one case I had with the Lloyd and McDaniel law firm, my phone calls and emails were never returned, so I visited their offices personally. When confronted with their inability to return calls, they responded they were too busy due to covid.

After talking to a new debt collector, I was promised a response, but three weeks later, I never got a response, although we were offering a 70% settlement in July and August 2021.   The client had no assets they could attach.

It was cheaper, faster, and better for a FICO score to file bankruptcy and strip the creditor’s judicial lien. That is often the answer if any collector has sued you for thousands of dollars.

Litigation with Lloyd and McDaniel Collection Attorneys

There is a practical consideration of what it costs to litigate against the collector agency. This isn’t just the monetary cost of the lawsuit. There are also the emotional costs of being dragged through court and the value of your time. Their demands are often based on how much they think you can afford or what the lawsuit will repay. Collectors forget that they may not be able to win in court.  It has become a successful practice to settle for nothing less than 70% generally.

The settlement should be based on whether they can win in court and whether the debt is collectible. Sometimes they have a case they can prove. But, sometimes they don’t.  There is the expense of litigation. Settlement today is less costly, certain, and less work than litigation. The possibility of the collection later is just a possibility. This uncertainty is a factor they should include in settling your debt. Plus, there is the genuine possibility of bankruptcy and collecting zero.

Settlement Terms with Lloyd and McDaniel

Debt collection law firms will almost always settle for payments over time with an agreed judgment. If you can make a lump sum immediate payment, debt collection attorneys will almost always take less. But, if you decide to make a payment over time, do not agree to a settlement you can’t afford.

A debt collection lawsuit almost always requires an agreed judgment to get a settlement. If they file the agreed judgment, your credit score drops. Additionally, the agreed judgment will usually state you owe the entire debt if you don’t pay the settlement amount.

Collectors hope you fail to pay the settlement amount because you owe the entire debt as a judgment upon default. Then, they win the case without any further work or the costs of that added work and attorney fees. So, if you pay, they win. And, if you don’t pay, they win even more. Of course, they agree to settle on those terms.

This tactic is a numbers game. Debt collection law firms like Lloyd and McDaniel already know that over half the time, debt buyers win when they litigate, and half the time, they lose. If they refuse to settle, they have to go to court. Then, they might not be able to prove the case. 

Why Settle with Lloyd and McDaniel

If law firms like Lloyd and McDaniel file a collection lawsuit, they are generally not going away. Litigation or bankruptcy may or may not be the best option. For instance, if this is just a small debt and the only debt you owe, debt settlement is the practical solution when attorney fees are 250 an hour.  The Debtor pays his own attorney fees and the bank’s attorney fees if he loses.  Sometimes you fight, but sometimes you have to be realistic.

There are costs of defending a debt collection case. If you’ve been sued for a $1,500 credit card, hiring an attorney at $250 per hour is not cost-effective. Litigation often requires taking off one or two days from work to fight the case before a judge. In this scenario, the litigation is more than the debt.

Get Advice from a Qualified Attorney Who is on Your Side!

Whatever you do, remember debt collection attorneys like Lloyd and McDaniel work for the debt collector. Lloyd and McDaniel do not work for you. It is unlikely Lloyd and McDaniel will offer legal advice to you which is against their own interest or their client’s interest. You may make the assumption that they will give you advice that would be helpful to you.  But it is highly unusual for a debt collector’s attorney to tell you that you have options other than paying the debt like suing the bank, servicer, or debt collector back.

Lloyd and McDaniel is a debt collection law firm. Debt collection law firms rarely advise you to file bankruptcy or to sue lenders back. They usually don’t explain you may have defenses like the statute of limitations, the FDCPA, or lack of standing. Instead, they collect information from you to collect the debt such as finding out your assets. They record your conversations and then they sue you using any admission or information you made in the recording.

Getting Sued for your Credit Card Debt? Here’s What to Do

All of us have had some difficulty at some time paying our credit card debts. The reality is many people do not realize how much an unpaid debt can cost and how much it can affect our credit score.

If you miss a payment for one or two months, it only affects your credit score slightly or may raise your monthly interest rate. Even so, continuously missing payments for a period of four to five months could force your credit card company to send your information to a debt collection agency or attorney, which might create a problem for you.

If you don’t take notice of your missed payments, a collector might recommend to the holder of the debt to file a lawsuit against you.  The Court summons only gives you 20 days to respond.

Do Debt Collectors Have the Right to Sue You?

No, in a nutshell. The only actual power a debt collector has is the ability to nag, whine, and beg you to repay.  A Debt collector may ask the owner of the debt for the authority to sue. But only an attorney has the right to file a lawsuit for his client.

Only the owner of the debt has the right to be the plaintiff and file the lawsuit.   We call this standing.  Debt collectors by definition collect the debt for the owner of the debt.  Lawyers can sue you and Lloyd and McDaniel is a collection law firm.

Debt collectors prefer not to file lawsuits usually unless they have exhausted all efforts to recover the debt.

Typically, the last step is the issuance of and sending of the court summons and complaints about the unpaid debt. You will not be imprisoned just for failing to pay a credit card debt.  But if you fail to appear for a hearing a judge may issue a bench warrant.  Debt collectors sometimes claim non-payment will send a debtor to jail.  Only non-payment of child support can be punished by prison time.

Complaints and the Court Summons- A Brief Introduction

A court summons only gives you notice a lawsuit has been filed as a cover sheet to the complaint.  The complaint which is attached gives you the details of getting sued for your credit card debts. Once the opposing attorney files a complaint against you in the civil court, you are most likely to receive the summons that will include the following essential information:

  1. Details about a plaintiff and co-defendants who are suing you.
  2. The total amount of money the plaintiff wished to receive from you.
  3. Date of how long you have to respond to the complaint is typically 20 days.

Do not wait until the last day before the deadline to have an attorney file an answer it can take days for him to draft and file an answer.

Answering a Complaint and Court Summons

It can be both time-consuming, stressful, and frustrating to receive a court summons and deal with all the outcomes in court. But you don’t have to worry if you have hired one of the best attorneys who understand how to deal with debt collectors.

Following are the steps you need to follow to respond to a court summons in the simplest way:

1. Don’t ignore the Court Summons

You should pay attention to any court summons you receive and contemplate the next course of action. In general, the court will give you 20 days to respond and carefully consider the options that are available to you.

If you are considering simply disregarding the summons, either because you believe you will be able to avoid payment, or because debt collectors will have pity, you are mistaken. By ignoring the court summons, you are not disputing the debt and you can lose by default.

The Debt collector then will garnish bank accounts, and wages and place a judgment lien on real estate, unless you pay back the money according to the court’s judgment and ruling.  After they obtain judgment you lose much of the ability to negotiate for a lower amount.

2. Verification and Validation 

Debt collectors may accidentally credit your account with debts that do not belong to you. As a result, the Fair Debt Collection Practices Act (FDCPA) requires debt collection firms to provide debt information and list owed debts. To verify a debt a letter with a request for information must be sent within 5 days to the debt collector after the initial communication on the debt.  Remember Verification and Validation are very different things to request from the debt collector.

However, if you have doubts about whether the debt belongs to you or about the amount, send a registered letter to a debt collector to verify the debt. You can also request the original creditor’s name and ask them for additional information about the debts. Ask them to confirm that the statutes of limitations for the debt have not expired.  There are about 64 different errors the debt collector can be sued for under the FDCPA which insures your rights which are listed in the statute.

3. Think about Settlement

If you are certain that the debts you are being sued for and the statute of limitations have not expired, you might consider hiring an attorney regarding a settlement outside of court.

The process of bringing a case to court and fighting for it is time-consuming and expensive for both parties. In many cases, debt collectors will happily negotiate in order to prepare a debt settlement arrangement outside of the court system.

Tips for Settling the Credit Card Debts

  • Evaluate your assets and budget about how much you can pay each month?
  • Request a settlement payment plan to pay off your debt over time. You can turn your debt into another monthly bill to fulfill debt collectors’ responsibility.
  • Debt collection agencies allow you to pay a lump sum to settle, which helps maintain a better credit history.
  • Generally to settle a debt we look for doubt as to the collectibility or liability of the debt.  If you attempt to communicate the settle the debt the collector will record the phone call and attempt you to admit liability.  It will then be used against you in court.

4. An Experienced Attorney Can Help You

You will usually need an experienced attorney to prepare your case and negotiate a settlement outside of court, or fight for the debts in court.

In addition to negotiating over fair debt collection practices with the debt collector. Nick Thomson can also assist you in strengthening your case, protecting your credit report, and defeating the debt collector in court.

Our law firm also offers free consultations to discuss the initial details and can assist you with rescuing yourself from financial strain, debt settlement relief, and maintaining a 700+ credit score after bankruptcy.

Handling Credit Card Debt that Does not Belong to you.

In truth, there are a large number of debt collection scams, as well as the possibility of multiple debt collection errors which might affect your credit report.

Before you receive a court summons, it is likely a credit card debt has been sold and resold.  It has often been processed through at least one or several debt collection agencies and holders of the note.  It is normal for a debt to be transferred. Unless a lawsuit is filed, debts can be sold and resold to different holders and transferred to different collection agencies.

The fact your list of creditors is circulated among various agencies and debt buyers means there is a chance for errors and omissions. There may also be instances where the debt belongs to someone with a similar name, someone who lived at your address in the past, or that there was identity theft.

Verification and the statute of Limitations

There is the possibility the debt belongs to you, but it is past the statute of limitations. In Kentucky, there is a 6, 10, and 15-year SOL.

Verify whether their debts belong to you by submitting a debt verification letter. If it doesn’t work, you should consult a professional attorney in Louisville to assist you in this matter.  It is a violation of the FDCPA to not comply with a request

We have been working as attorneys for over 33 years, so we understand the technical elements to provide you with the best assistance possible.

What is Better Business Bureau (BBB) and CFPB How Do they Work?

Better Business Bureau is a nonprofit and private organization established in 1912. It consists of 106 independent local BBB in Canada and the United States. This organization uses a grading system from A+ to F, where a higher rating means that the company is doing well according to the BBB scenarios. Their rating formula is not public however, the employees evaluate the behavior of a business while rating them.

Sometimes however it is better to look up a company with the CFPB consumer financial protection bureau or file a complaint with the CFPB.

Contact Our Law Firm to Get a Settlement with Lloyd and McDaniel Collection and Protect Yourself Against Debt Collectors!

In the event you are sued for credit card debt, you have a right to take appropriate actions. Nick is available to assist you in either the negotiation of debt settlements or in the courtroom if the need arises and help you maintain a healthy credit report.

If you would like a free consultation at any time, please contact us with a message or give us a call.

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If you need help settling or defending a debt collection lawsuit, stopping harassing debt collectors, or suing a debt collector, contact us today to see what we can do for you. Nick C. Thompson, Bankruptcy Lawyer: 502-625-0905

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