Can I be sued by a collection agency that is not licensed to collect in my state?

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Can I be sued by a collection agency that is not licensed to collect in my state?

I received a message from a company called stating that they were suing me for check fraud on an payday loan from 3 years ago. They said they were an arbitration company not collections. I requested a VOD which they would only email to me and not mail. They refused to mail me a copy of the signed contract. What are my rights in regards to this matter?

Asked on August 17, 2011 Idaho

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Most states require all corporations doing business within their territory to be in good standing as a corporation and if a foreign corporation, registered with its Secretary of State to do business. If the collection agency is in the business of buying debt and suing the person owing the debt, most likely the collection agency (if a foreign corporation to the state you live in) has to be registered to do business in the state you live in to even bring a lawsuit against you.

The out of state collection agency has the right to sue you. However, if you object to its standing to sue, you might be able to have any lawsuit filed against you dismissed.

Possibly the "threat" of this third party collection agency could be a violation of unfair debt collection practices in your state and the federal statute on the subject.

Good luck.


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