How to Resolve a Debt with Lockhart Collection Agency
If Lockhart Collection Agency contacts you, request debt validation first. If the debt is valid, you can respond to any lawsuit or negotiate a settlement for less than you owe. Take action quickly to protect your rights and resolve the debt on favorable terms.
Respond to LockhartDebt collection is never pleasant. If Lockhart Collection Agency has contacted you, address the situation promptly.
You have options. You can validate the debt, respond to a lawsuit, or negotiate a settlement.
Sued by Lockhart? Respond Before Your Deadline
Don't let Lockhart Collection Agency win by default. File your Answer now and protect your rights in court.
Answer the LawsuitOur partner Solo can help you fight back against debt collectors.
What Is Lockhart Collection Agency?
Lockhart Collection Agency, formally known as Lockhart, Morris & Montgomery, Inc., is a debt collection agency based in Texas.
The company operates as both a third-party collector and a debt buyer.
Despite an A+ BBB rating, Lockhart has received hundreds of complaints. Most complaints cite failure to validate debts and contacting consumers about debts they don’t owe.
The Consumer Financial Protection Bureau’s database shows similar issues. Consumers report aggressive tactics and poor communication.
What Does Lockhart, Morris & Montgomery Do?
Lockhart Collection Agency offers several debt collection services:
- Third-party consumer collections: Companies hire Lockhart to collect debts on their behalf.
- Early out collections: Lockhart contacts people as soon as they fall behind on payments.
- Third-party commercial services: Business-to-business debt collection for corporate clients.
- Legal outsourcing: Connecting creditors with legal services to pursue court action.
- Late-stage collections: Pursuing debts that are several years old.
- Receivables purchases: Buying old debts from creditors at steep discounts.
Lockhart may have purchased your debt for pennies on the dollar. The original creditor got something, and Lockhart tries to collect the full amount.
Before you pay anything, take these steps:
- Confirm the debt is actually yours.
- Check if the statute of limitations has expired.
- Request debt validation in writing.
Debt collectors often contact the wrong person. Debts get mistakenly assigned all the time.
Request Debt Validation From Lockhart
Don’t panic when you receive a collection notice. You have rights under the Fair Debt Collection Practices Act.
The FDCPA requires collectors to verify debts before pursuing collection. When Lockhart first contacts you, they must provide validation.
If they don’t, send a formal debt validation letter. Request proof that you owe the debt and that Lockhart has the right to collect it.
Mail your validation request to this address:
Lockhart, Morris & Montgomery, Inc.
1401 N Central Expressway Suite 225
Richardson, TX 75080
You can also call them at 877-214-3355. Always follow up phone conversations with written correspondence.
Send your letter via certified mail with return receipt requested. You’ll have proof they received your validation request.
Respond to Your Debt Lawsuit From Lockhart
If Lockhart sues you, respond before your state’s deadline. Ignoring a lawsuit guarantees you’ll lose.
You must file an Answer with the court. Your Answer should address each claim against you and assert your affirmative defenses.
Common affirmative defenses include:
- Statute of limitations has expired
- Debt has already been paid
- Amount claimed is incorrect
- Collector lacks proper documentation
- Identity theft or fraud
Our partner Solo can help you draft and file a proper Answer. The software guides you through each step.
You’ll respond to questions about your case. The system generates a properly formatted Answer with appropriate legal language.
Your Answer will address all claims and include your affirmative defenses. You’ll increase your chances of winning or reaching a favorable settlement.
Negotiate a Settlement With Lockhart Collection Agency
Most collection agencies prefer settlement over lengthy court battles. Lockhart would rather collect something than nothing.
You have two main negotiation options:
- Lump sum settlement: Offer a one-time payment for less than the total debt.
- Payment plan: Arrange monthly installments if you can’t pay all at once.
Start by offering 40-50% of the total debt. Lockhart will likely counter with a higher amount.
Most debts settle between 50-70% of the original balance. The exact amount depends on the debt’s age and your financial situation.
Always get settlement terms in writing before you pay. The agreement should specify the exact amount and confirm the debt will be marked as settled.
Never send cash or use wire services. Pay by check or bank transfer to maintain a paper trail.
Our partner Solo offers a tech-based settlement solution. The software helps you send and receive offers until you reach an agreement.
What to Include in Your Settlement Offer
Your settlement offer should explain your financial hardship. Be honest about why you can’t pay the full amount.
Include these elements in your offer:
- The total amount you’re offering
- Payment method and timeline
- Request for deletion from credit reports
- Confirmation that this settles the debt in full
Don’t admit the debt is valid if you’re unsure. Focus on resolving the matter without admitting liability.
Pay Your Settlement and Monitor Your Credit
Once you reach an agreement, honor your commitment. Breaking a settlement agreement leads to worse legal problems.
Make your payment by the agreed deadline. Keep copies of all payment confirmations and receipts.
After paying, check your credit report within 30-60 days. The debt should be marked as settled or paid.
If Lockhart doesn’t update your credit report, dispute the error. Send your settlement agreement and payment proof to all three credit bureaus.
You can get free credit reports at AnnualCreditReport.com. Check all three bureaus: Equifax, Experian, and TransUnion.
Protect Yourself From Future Collection Issues
After resolving your debt, take steps to avoid future problems. Create a realistic budget that covers all your obligations.
Set up automatic payments for recurring bills. You’ll never miss a payment due to forgetfulness.
Build an emergency fund to cover unexpected expenses. Even $500-1000 can prevent new debt when emergencies arise.
If you’re struggling with multiple debts, seek help early. Waiting makes the problem worse.
Know Your Rights Under the FDCPA
The Fair Debt Collection Practices Act protects you from abusive collection practices. Collectors cannot:
- Call before 8 AM or after 9 PM
- Harass or threaten you
- Contact you at work after you’ve asked them to stop
- Discuss your debt with others
- Misrepresent the amount you owe
- Continue contacting you after you’ve requested validation
If Lockhart violates the FDCPA, document everything. Keep records of all calls, letters, and voicemails.
You can sue collectors for FDCPA violations. You may recover up to $1,000 plus actual damages and attorney fees.
Report violations to the Consumer Financial Protection Bureau. The CFPB tracks complaints and can take enforcement action.
You Can Resolve Your Debt at Any Stage
No matter where you are in the collection process, you have options. Debt validation works at the beginning.
If you’ve been sued, responding to the lawsuit protects your rights. Settlement negotiations can happen before or during litigation.
The key is taking action quickly. Ignoring collection notices and lawsuits only makes things worse.
You deserve to resolve your debt on fair terms. Lockhart Collection Agency is willing to negotiate.
Start by requesting validation. If the debt is valid and you can’t pay the full amount, negotiate a settlement.
Get everything in writing before you pay. Monitor your credit reports after resolving the debt.