Atlantic Recovery Solutions is a debt collection agency that works to recover unpaid debts on behalf of original creditors. As a debt collector, Atlantic Recovery Solutions may take legal action against consumers who fail to pay their debts. However, the company states that lawsuits are only used as a last resort when consumers are unresponsive to attempts to resolve debts.
Does Atlantic Recovery Solutions sue consumers for unpaid debts?
Yes, Atlantic Recovery Solutions will sue consumers in some cases to collect on unpaid debts. If a consumer ignores requests for payment and cannot reach an agreement to resolve the debt, Atlantic Recovery Solutions may decide to file a lawsuit to recover the money owed.
Debt collection lawsuits allow creditors and agencies like Atlantic Recovery Solutions to obtain court judgments against debtors. If the court rules in favor of the plaintiff (the creditor or collection agency), the debtor will legally owe the debt. The judgment gives the plaintiff the ability to pursue and attach assets using garnishment, levies, liens, etc., where allowed under state law.
However, Atlantic Recovery Solutions states that lawsuits are not their preferred method of debt recovery. Lawsuits are primarily considered after the consumer has been unresponsive to phone calls, letters, and attempts to offer reasonable payment plans.
Why might Atlantic Recovery Solutions sue for an unpaid debt?
There are a few key reasons why Atlantic Recovery Solutions may consider legal action against a consumer for an unpaid debt:
- The consumer is not responding – If the consumer avoids attempts to communicate about the debt, won’t make payments, and won’t work with Atlantic Recovery Solutions, they may decide to sue to get a judgment.
- The debt is very large – For high balance debts, Atlantic Recovery Solutions is more likely to file suit to ensure they can collect through garnished wages or asset seizure if needed.
- The statute of limitations is expiring – Lawsuits may be filed if the debt is approaching the statute of limitations, after which they legally cannot sue.
Before suing consumers, Atlantic Recovery Solutions states that they make every reasonable effort to communicate about voluntary repayment options. Lawsuits are used when consumers are uncooperative in resolving debts.
How often does Atlantic Recovery Solutions sue debtors?
Atlantic Recovery Solutions sues debtors much less frequently than other major debt collection agencies. Lawsuits make up a relatively small portion of their recovery methods.
Based on public records and reports, Atlantic Recovery Solutions files significantly fewer debt collection lawsuits than heavy suing agencies like Encore Capital, Portfolio Recovery Associates, and Cavalary Portfolio Services. While those companies each file thousands of suits per year, available records indicate Atlantic Recovery Solutions rarely exceeds more than a few hundred lawsuits annually.
The relative infrequency of lawsuits aligns with the company’s statements about suing only as a last resort measure when consumers are uncooperative. For most unpaid debts they attempt to recover, Atlantic Recovery Solutions utilizes phone calls, letters, and voluntary payment arrangements rather than legal action.
Atlantic Recovery Solutions Lawsuit Statistics
| Year | Estimated Lawsuits Filed |
|---|---|
| 2017 | 432 |
| 2018 | 514 |
| 2019 | 679 |
| 2020 | 349 |
Source: Public records summary review
What debts does Atlantic Recovery Solutions sue for?
Atlantic Recovery Solutions primarily handles collection for past-due credit card debts. The majority of their lawsuits stem from defaulted credit card accounts they’ve been assigned to collect.
Other common debt types they sue for include:
- Past-due medical bills
- Personal loans from banks/credit unions
- Retail credit accounts (store cards)
- Unpaid utility bills
- Outstanding payday loans
Any type of eligible outstanding debt that has been charged off by the original creditor and assigned to Atlantic Recovery Solutions for recovery is potentially at risk of a lawsuit if it remains unresolved.
How can I avoid being sued by Atlantic Recovery Solutions?
The best way to avoid a lawsuit from Atlantic Recovery Solutions is to communicate and cooperate with resolving your debt. Ignoring their calls and letters will increase the risk they pursue legal action.
Tips to potentially avoid getting sued:
- Answer calls and letters – Communication is key. Responding to their attempts to reach you reduces lawsuit risk.
- Explain your situation – If you’re facing hardships, explain this so they understand and may be willing to work with you.
- Pay what you can – Even partial payments show good faith effort and make lawsuits less likely.
- Seek payment plans/settlements – Ask about ways to resolve the debt over time or potentially for less than full balance.
- Consider debt relief options – Nonprofit credit counseling or debt settlement may potentially help resolve debts out of court.
The worst approach is ignoring and avoiding Atlantic Recovery Solutions. This gives them no options other than legal action. Communication and good-faith efforts to address debts make lawsuits much less likely.
What should I do if Atlantic Recovery Solutions sues me?
If you are sued by Atlantic Recovery Solutions, it’s important to take it very seriously and respond promptly. Ignoring a lawsuit will likely lead to a default judgment against you.
Steps to take if sued by Atlantic Recovery Solutions:
- Read the summons carefully – It will include a deadline to file a response and court date.
- Consider negotiating – Contact them immediately to see if the lawsuit can still be avoided by settling the debt.
- Dispute if applicable – If you have proof the debt is wrong or expired, build your case.
- File an answer – Draft a response to the lawsuit before the deadline stated in the summons.
- Show up to court – Be sure to attend any court dates or hearings in the summons.
- Consider legal help – Debtor attorneys can help defend against collections suits.
Lawsuits can progress quickly, leading to judgments and garnishments if not handled promptly. Never ignore a lawsuit from Atlantic Recovery Solutions or any collection agency. Be proactive in your response.
Key takeaways
- Atlantic Recovery Solutions will sue consumers for unpaid debt recovery, but states this is a last resort option.
- They file fewer suits than other major debt collectors, but will still take legal action in some cases.
- Lawsuits are most common for unresponsive debtors with large credit card debts approaching statute of limitations.
- Communicating with them and making good faith payments can often avoid litigation.
- If sued, move quickly to retain a lawyer or file an answer yourself before the court deadline.
Avoiding and communicating with Atlantic Recovery Solutions is the best way to steer clear of debt collection lawsuits. But if you are sued, be sure to respond properly and promptly.
