How to Resolve a Debt With Innovative Recovery

Innovative Recovery contacts you to collect debts on behalf of other companies. They focus mainly on helping property managers collect late rent, fees, or penalties.

Their collectors may take you to court if they believe you’re refusing to pay. If you’ve received collection calls or face a lawsuit from Innovative Recovery, here’s what you need to know.

You have up to 35 days to respond before losing by default. Our partner Solo can help you draft and file your Answer quickly.

Is Innovative Recovery Legitimate?

Based in Dallas, Innovative Recovery is a legitimate debt collection agency. They’ve been in business for over 14 years.

Innovative Recovery was previously known as ResidentCollect, Inc. Their phone number is 844-419-0102. Their address is 5310 Harvest Hill Road, Dallas, TX.

Their staff may contact you by mail, phone, text, or social media.

Innovative Recovery maintains a “B” rating with the Better Business Bureau, though they’re not accredited. Consumer reviews are also found at the Consumer Finance Protection Bureau (CFPB).

Innovative Recovery can contact you in error. Sometimes it’s a mistake on their part. However, if the debt is legitimate, you still have options to resolve it.

Who Does Innovative Recovery Collect For?

Innovative Recovery primarily works for the property management industry. If a court ordered you to pay fines for cleaning or repairs, your former landlord may hire them.

Property managers contract with Innovative Recovery to recoup losses from previous residents. IR specializes in multifamily bad debt recovery and uses data analysis to identify trends.

You Have Rights Under the FDCPA

The Fair Debt Collection Practices Act (FDCPA) protects you from unfair debt collection tactics. Under the FDCPA, debt collectors are forbidden from:

• Contacting you after 9 p.m. or before 8 a.m.
• Attempting to collect a debt that doesn’t belong to you
• Threatening legal action and arrest
• Calling after you request them to stop
• Lying and pretending to be lawyers
• Contacting your family, friends, or coworkers about your debt

Innovative Recovery claims all staff are thoroughly trained in FDCPA. They follow consumer protections outlined in federal law.

Send a Debt Validation Letter

When Innovative Recovery first contacts you, send a debt validation letter. The letter is sometimes called a debt dispute letter.

The letter ensures that Innovative Recovery proves the account belongs to you. They must provide proof, including amounts, dates, repayment history, and acquisition details.

You should send the debt validation letter within thirty days of their initial contact. You need to act fast.

How to Respond to an Innovative Recovery Lawsuit

You don’t need an attorney to respond to a debt collection lawsuit. You can successfully defend yourself. Hiring an attorney costs lots of money and takes time you may not have.

When Innovative Recovery sues you, you’ll receive a court Summons and Complaint. These legal documents initiate a lawsuit. The Summons notifies you of the case. The Complaint lists specific claims against you.

You must respond before your state’s deadline or you’ll automatically lose with a default judgment. A default judgment gives Innovative Recovery the right to garnish wages and seize property.

You can prevent a default judgment by responding with a written Answer. Here’s how to do it.

Follow These Steps to Respond

Follow these steps to respond to a debt collection lawsuit:

1. Answer every Complaint
2. Assert your affirmative defenses
3. File the Answer in court and with Innovative Recovery’s attorney
4. Continue to follow up on your case and attend all hearings

1. Answer Every Complaint

The Complaint document lists reasons why you’re being sued. In your Answer document, you should reply to each one.

Choose one of these responses to answer each claim:

• Admit: “This is true.”
• Deny: “Prove it.”
• Deny due to lack of knowledge: “I don’t know.”

Deny all claims you dispute. Denying the claim places the burden on Innovative Recovery to prove allegations.

You can also deny a claim due to lack of knowledge. It may be your best option if you don’t understand claims.

If you agree with a claim, you can admit it. Admitting all complaints means you’re guilty. The court will likely issue a judgment against you.

2. Assert Your Affirmative Defenses

After you’ve responded to claims, you’re ready to assert affirmative defenses. An affirmative defense is any legal reason Innovative Recovery shouldn’t win.

You must assert your affirmative responses in your Answer document. You won’t be able to bring them up later in the case.

Here are common affirmative defenses used in debt collection lawsuits:

• The debt is not yours due to identity theft
• The amount stated in the Complaint is inaccurate
• Innovative Recovery doesn’t own the debt they’re suing for
• The statute of limitations on the debt has passed

The list of affirmative defenses is extensive. You can use whichever ones are true for your case.

3. File the Answer in Court

After responding to each complaint and asserting defenses, you’re ready to file. You must file your Answer before the deadline (14-35 days depending on your state).

To file your Answer in court, follow these steps:

• Print the Answer and two copies
• File the Answer at the courthouse or mail it in
• Mail a copy to Innovative Recovery’s attorneys
• Keep a copy for your records

The opposing attorney’s address should be listed on the Summons and Complaint. Send your Answer to the court via USPS-certified mail with return receipt requested.

Some courts require electronic filing or have special filing rules. Our partner Solo handles all filing research for you.

4. Keep Track of Your Lawsuit

Filing an Answer is the first step. It lets Innovative Recovery know you intend to stay involved until resolution.

You’re still responsible for responding to court correspondence. You must attend hearings until the case is dropped or reaches conclusion.

How to Settle a Debt With Innovative Recovery

You can initiate debt settlement at any time during collection. You can settle even after a lawsuit has been filed.

Use this step-by-step guide to learn how to settle debt with Innovative Recovery.

1. Understand Your Financial Situation

Evaluate your finances closely to determine your lump-sum settlement offer. Consider offering less than the maximum you can pay.

You should expect a counter-offer. You’ll have room to continue negotiations.

2. Submit a Debt Settlement Offer

Contact Innovative Recovery and make a settlement offer. Typically, you’ll want to offer at least 50% of the amount owed.

If the debt has been sold to a collector, you may negotiate for lower. Our partner Solo can help you negotiate effectively.

3. Get the Agreement in Writing

Memorialize the agreement with a written and signed debt settlement agreement. The agreement should contain language indicating this settles the debt in full.

4. Pay the Settlement Amount

Make a timely lump sum payment if that’s what you agreed to. If you’ve negotiated a payment plan, make payments in full and on time.