If you have been served with a Crown Asset Management lawsuit, you should understand what it is, why it may be suing you, and how to protect yourself. At Warren & Migliaccio, we represent and defend individuals facing creditor and debt collection lawsuits across Texas. Below, our Texas debt defense lawyers discuss what to know about Crown Asset Management and what you can do if facing a debt collection lawsuit.
What Is Crown Asset Management?
Crown Asset Management, or CAM, is a receivables company based in Duluth, Georgia. The company purchases charged-off debt portfolios from original creditors.
Creditors may charge off debts once they have exhausted collection efforts and determined that the debts are unlikely to be collected. Then, creditors will sell the debts to debt buyers like CAM at a steeply discounted rate. After Crown Asset Management buys these debts, it seeks to collect the full amount of debt owed and accrued interest to turn a profit.
According to its website, CAM has purchased more than 500 consumer credit portfolios across the United States. For example, some of the consumer debts it purchases include:
- Credit cards
- Auto loans
- Personal loans
Is Crown Asset Management Legit?
Yes, Crown Asset Management is a legitimate company. It buys debt portfolios of charged-off consumer debts from original creditors and other businesses.
However, while the company itself is legitimate, you have the legal right to verify the debt it claims you owe. This means you should request debt validation from Crown Asset Management. CAM must be able to prove that it owns the debt, that you owe it, that the amount it alleges you owe is correct, and that it has the legal right to collect. In some cases, you may not owe Crown Asset Management the money it alleges you owe.
Is Crown Asset Management a Collection Company?
Crown Asset Management has an active debt collector bond registered with the Texas Secretary of State. You can find it using the file number 20080186. This means that it can legally collect debts in Texas. However, Crown Asset Management primarily functions as a debt buyer rather than a debt collection company.
CAM does not collect debts for any other companies. Typically, it does not even collect debts for the accounts it buys. Instead, after CAM purchases debts from creditors, it hands the accounts to its network of third-party debt collection companies and law firms to handle the collections.
In Texas, it often places its accounts with the debt collection law firm Rausch Sturm LLP. Therefore, you will likely hear from Rausch Sturm LLP or another law firm on behalf of Crown Asset Management.
Does Crown Asset Management Always Sue?
Crown Asset Management does sue Texas consumers for debt collection. However, it will generally attempt to collect the debt through demand letters or phone calls before resorting to litigation. If those collection efforts fail, CAM may decide to sue.
If Crown Asset Management files a lawsuit, you should receive a summons and complaint, officially notifying you of the lawsuit and the claims against you. Then, you generally have 14 to 20 days to file a formal response to the lawsuit with the appropriate court. Missing this deadline can result in a default judgment against you.
A default judgment means that CAM wins the lawsuit because you ignored it, even if it should not win. If Crown Asset Management gets a judgment against you, it can pursue further collection methods. For example, it can pursue freezing and garnishing bank accounts, placing liens on property, or seizing nonexempt property. Because of these potential consequences, we do not recommend ignoring the lawsuit. It will not go away on its own.
If Crown Asset Management or its attorney has contacted you, do not hesitate to reach out to our Texas debt collection defense attorneys. We provide a free consultation to help you understand your legal rights and options for resolving the lawsuit.
How to Settle With Crown Asset Management
Is Crown Asset Management suing you for debt collection? If so, you may consider negotiating a settlement to avoid court and potentially reduce the debt it claims you owe. However, we recommend working with an experienced Texas debt defense lawyer to help you with your case.
An attorney can investigate the claims against you and identify any defenses, such as an expired statute of limitations, that may warrant case dismissal, fighting the case in court, or give you leverage in settlement negotiations. Additionally, exploring debt relief options like bankruptcy may be in your best interest if you are overwhelmed by your debt. An attorney can help you determine the best course of action for your unique situation.
Crown Asset Settlement Navigator
Step 1: Answer the Lawsuit
If CAM has already filed a lawsuit against you, you should file a formal response to it, even if you plan to settle. By responding to the lawsuit, you protect yourself from a default judgment. A default judgment would give CAM the legal right to collect the amount of debt claimed and other fees. By responding, you also give yourself time to assess and determine your best legal options for moving forward.
Step 2: Request Debt Validation
Before you decide a settlement is your best option, you should demand debt validation from Crown Asset Management. Crown Asset Management must have strong evidence to prove the following:
- It owns the debt account
- You owe the alleged debt
- The amount of debt is correct
- It has the legal right to collect the debt
If CAM has a weak case against you or you do not recognize the debt, a settlement may not be in your best interest. Instead, you may be able to get the case dismissed or fight the lawsuit in court and win.
However, suppose you recognize the debt, and CAM has a strong case against you. In that case, you may decide that negotiating a settlement is in your best interest.
Step 3: Determine Your Settlement Options
Generally, a settlement will result in a lump-sum payment or a payment plan. You may be able to negotiate a reduced amount if you can offer a lump sum amount. Otherwise, determine how much you can manage on a monthly payment plan.
Step 4: Make a Settlement Offer
When ready, send a written settlement offer to Crown Asset Management. Give yourself some room to negotiate by starting low because CAM may send a counteroffer. It may take a few back-and-forth negotiations to reach an agreement. Once you agree, ensure you get a legally valid, written settlement agreement.
Schedule a Free Consultation With Our Texas Debt Collection Defense Lawyers
Are you facing a Crown Asset Management lawsuit in Texas? If so, do not hesitate to schedule a free consultation with our Texas debt collection defense lawyers. We represent and defend individuals like you across the state, helping them resolve and put debt collection lawsuits in the past. We provide a free consultation to discuss your situation, review the claims against you, and help you understand your legal options for resolving the lawsuit.
When you work with us, we aim for case dismissal first. However, if case dismissal is not possible, we will help you achieve the best possible outcome, whether through challenging the lawsuit in court, negotiating a favorable settlement, or seeking alternative debt relief. Call us at (888) 670-3593 or submit our online contact form, and we will contact you soon to schedule a free consultation.
