If UHG I, LLC, is suing you for debt, you might feel overwhelmed or question if it’s a scam. UHG I, LLC, is not a creditor or lender, but a debt buyer that purchases charged-off debts for a fraction of their value. It then seeks to recover the full amount—and more—from consumers. It’s important to know that you have options for resolving the lawsuit. Below, our Texas debt defense lawyers explain what you need to know about UHG I, LLC, and how to respond to a lawsuit.
What Is UHG I, LLC?
UHG I, LLC, or United Holding Group, is a debt buyer. It purchases portfolios of charged-off debts from original creditors, like banks, credit card companies, or other lenders, at a fraction of their face value. After purchasing the debt at a reduced price, UHG I, LLC pursues the full amount of debt consumers owe to make money, sometimes through lawsuits.
UHG I, LLC generally hires debt collection law firms to pursue consumer debts on its behalf. We often see the company work with the following law firms for its Texas cases:
- Persolve Legal Group
- Pollack & Rosen, P.A.
Why Is UHG I, LLC Suing Me?
UHG I, LLC is likely suing you because it has acquired a debt from a creditor that it believes you owe. Original creditors typically charge off debts or write them off as uncollectible when regular collection efforts have not worked. The original creditors may then sell their charged-off debts for pennies on the dollar to companies like UHG to recover some value for them.
The debt may be related to credit card debt, personal loan debt, or another form of debt. The complaint should detail the amount it believes you owe, the original creditor, and the basis for the claim.
It is important to understand that UHG I, LLC, does not want to go to trial and prove its case against you. Debt buyers like UHG I, LLC often file hundreds of lawsuits at once, seeking default judgments. A default judgment occurs when the defendant (you) does not respond to the lawsuit or appear in court.
When this happens, the court rules in favor of the debt buyer. Basically, a default judgment is an easy, automatic win for UHG I, LLC. By obtaining a default judgment, UHG I, LLC can pursue more aggressive collection actions, like bank garnishment, liens against your property, or property seizure.
This infographic outlines the essential steps to take when facing a lawsuit from UHG I LLC in Texas, providing clear guidance to protect your rights and navigate the legal process effectively.
What to Do if Sued by UHG I LLC
If you have been sued by UHG I, LLC, our Texas debt defense lawyers recommend taking the following steps:
1. Consult With an Experienced Texas Debt Defense Lawyer
If you have received notice that UHG, LLC is suing you, consider contacting an experienced debt defense lawyer as soon as possible. At Warren & Migliaccio, our Texas debt defense lawyers provide a free consultation to Texans facing debt collection lawsuits.
During a free consultation, we can review the claims against you. We can evaluate potential defenses for your case and help you understand your legal options. If you have a strong defense or there are weaknesses in UHG LLC’s case, you may be able to get the case dismissed.
Call (888) 584-9614 or click here to submit a consultation request form now.
Get Help Now
2. Respond to the Lawsuit
Responding to the lawsuit is the only way to protect yourself from a default judgment. Generally, you only have 14 to 20 days to file your response, so it is critical to act quickly.
Responding involves drafting and filing an Answer with the appropriate court. You must also send a copy to UHG I, LLC and its lawyer. You can use our guide to responding to a court summons as a resource.
In your Answer, you should respond to each claim against you and include your defenses to the lawsuit. Once you respond to the lawsuit, you can decide how to resolve it.
3. Demand Debt Validation and Analyze Your Legal Defenses
Debt collection lawsuits often have many potential weaknesses, especially when the debt has been purchased and sold. We recommend demanding validation of the debt from UHG I, LLC.
UHG I, LLC is a debt buyer, meaning the debt was sold at least once. In many cases, debt may be purchased and sold numerous times. UHG I, LLC must be able to show the chain of ownership from the original creditor to itself and prove that it has the legal right to collect the debt.
More so, it must prove with evidence that the debt is yours and the debt amount is correct. If UHG I, LLC cannot prove one or more of these elements, it may be grounds for dismissal.
There may be other defenses to the lawsuit, too. For example, if you do not recognize the debt, then it may be a case of mistaken identity or identity theft. Another common defense is an expired statute of limitations.
Each state, including Texas, has a deadline for how long a creditor or debt collector has to pursue a debt through litigation. In Texas, this deadline is four years. If the debt is too old, you can seek case dismissal.
Illegal debt collection practices may also be a potential defense and warrant countersuing. In 2022, the Consumer Financial Protection Bureau (CFPB) sued UHG for allowing its third-party debt collectors to deceive consumers in its collection efforts. According to the CFPB, UHG knew or should have known that the debt collectors it placed its debt with were deceiving consumers with false statements, including threatening arrest and jail if the debt was not paid quickly.
An experienced debt defense lawyer can assess the claims against you and help you determine the best defenses for your situation.
4. Choose a Legal Strategy
Generally, debt collection lawsuits reach resolution in one of a few ways. The best course of action for you will depend on your unique situation. Typically, however, these cases end in one of the following ways:
- Dismissal. Seeking case dismissal may be viable if there are significant weaknesses in UHG LLC’s case against you. You may show that the debt is time-barred, UHG lacks evidence, or other issues with the case. The court may dismiss the case, or UHG I, LLC may drop it if it cannot prove its case.
- Settlement. Settling may be the right option if you acknowledge the debt and want to avoid the time, costs, and risk of a trial. In many cases, you may be able to negotiate a reduced amount or set up a manageable payment plan.
- Trial. Taking the case to trial may be worth considering if you have strong defenses and evidence that give you a good chance of winning the case.
- Alternative debt relief, like bankruptcy. Bankruptcy may be the best option if you are dealing with overwhelming debt beyond the UHG lawsuit. Bankruptcy can provide relief by discharging or restructuring debts and stopping collection actions, including lawsuits.
Schedule a Free Consultation With Our Texas Debt Defense Lawyers
At Warren & Migliaccio, we have significant experience and success defending individuals against debt collection lawsuits in Texas. If you are facing a UHG I LLC lawsuit, then do not hesitate to schedule a free consultation with us.
We can review your case and help you determine the best course of action based on the details of the lawsuit and your financial situation. Call us at (888) 548-9078 or contact us online.
