Legal Debt Collector Actions under Section 811

Debt collectors can sue consumers to obtain court judgements and then collect on past due bills by garnishment of wages and bank accounts (section 811).

Legal debt collector actions under the section 811 allows debt collectors to sue consumers for the purpose of obtaining court judgements for debts but, only in the judicial district where the consumer resides or signed the contract, except that an action to enforce a security interest in real property which secures the obligation must be brought where the property is located. Even after a judgment is awarded, bill collectors, creditors, and debt collectors still have to figure out how to collect the debt from you!

1. Waiver of rights
2. Multiple defendants (ex-spouses)
3. Where collectors can sue for real estate debts
4. Where collection agents can sue for oral agreements
5. Judgments can be enforced across State lines!
6. Scope of section 811

Up 1. Waiver of Rights

You can waive your rights under the FDCPA but, you must provide the waiver directly to the debt collector (not to the creditor in the contract establishing the debt), because the forum restriction applies to actions brought by the debt collector.

Up 2. Multiple Defendants (ex-spouses)

Since a debt collector may sue only where the consumer (1) lives or (2) signed the contract, the collector may not join an ex-husband as a defendant to a suit against the ex-wife in the district of her residence, unless he also lives there or signed the contract there. The existence of community property at her residence that is available to pay his debts does not alter the forum limitations on individual consumers.

Up 3. Real Estate Debt.

A debt collector may sue based on the location of a consumer's real property only when he seeks to enforce an interest in such property that secures the debts.

Up 4. Oral Agreements

Where services were provided pursuant to an oral agreement, the debt collector may sue only where the consumer resides. He may not sue where services were performed (if that is different from the consumer's residence), because that is not included as permissible forum location by this provision.

Up 5. Enforcement of Judgments.

If a judgment is obtained in a forum that satisfies the requirements of this section, it may be enforced in another jurisdiction, because the consumer previously has had the opportunity to defend the original action in a convenient forum.

Up 6. Scope.

This provision applies to lawsuits brought by a debt collector, including an attorney debt collector, when the debt collector is acting on his own behalf or on behalf of his client.