Overdue stack of bills

SOFI is primarily known for being a new lender in the private student loan business. We have defended many consumers against SOFI private student loan lawsuits and represented many of them in pre-suit collection matters. SOFI has moved on to other areas of business including credit cards, personal loans and even mortgages. Due to this expansion, we are seeing many more SOFI collection matters and lawsuits across all of their business practices. SOFI is similar to most other original lenders such as American Express, Capital One and others in how they pursue consumers. Their first step is usually to send the matter to a collection agency to see if they can recover the debt. If collection proves to be unsuccessful then they will usually decide whether to send the debt to a law firm to sue the consumer or sometimes they may sell the debt to a 3rd party debt buyer. Debt buying is a big industry with large companies such as Midland Credit Management, Portfolio Recovery Associates and LVNV Funding buying debt for pennies on the dollar and pursuing consumers for the debt via collection and litigation.

If SOFI does decide to send the matter into litigation, Zwicker and Associates is usually the debt collection law firm that represents them in court. Zwicker is a common debt collection law firm that represents a variety of creditors including Discover Bank, American Express, and Capital One bank. Zwicker often obtains default judgments against consumers which allows them to freeze bank accounts and garnish wages. It also allows them to place a lien on any real property that the debtor owns. This is prevents consumers from buying or selling any real property or even refinancing a property.

A SOFI lawsuit must be defended against to prevent a default judgment by simply submitting an answer with defenses. Then the defendant can request proof of the debt through the discovery process. The burden to prove the case and provide proof of the debt is always on the plaintiff so that burden can be used as leverage for settlement purposes. We have frequently settled SOFI matters for reductions of 50% or more off of the entire debt amount with Zwicker and Associates. If a default judgment is obtained, then an order to show cause or motion to vacate the default must be filed as quickly as possible but not more than one year after it is discovered. This will re-open the case so that an answer can be submitted and so that SOFI cannot try to levy or garnish the consumers assets. It also provides the necessary leverage to settle the case to avoid further litigation for both parties.

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