RTR Financial Services Lawsuit? Here's Your Defense Plan

RTR Financial Services just served you with a debt collection lawsuit. Maybe it's a $3,000 emergency room bill from 2019. Maybe it's a $12,000 surgery you thought insurance covered. Either way, you now have 20-30 days to respond, or RTR wins by default.

That deadline is real. Miss it, and RTR gets a judgment. They can garnish your wages, freeze your bank account, and wreck your credit for seven years. But if you respond correctly, you can force them to prove their case—and most debt collectors struggle to do that.

This guide shows you how to defend yourself against RTR Financial Services, step by step. No legal jargon. Just what works.

What RTR Financial Services Actually Does

RTR Financial Services is a debt collection agency based in Staten Island, New York. They buy or collect medical debt for hospitals and healthcare providers across New York, New Jersey, and Connecticut. When you don't pay a medical bill, the hospital waits 90-120 days, then either sells your debt to RTR or hires them to collect it.

RTR files thousands of lawsuits each year in small claims and civil courts. Their typical targets: people who owe $2,000-$15,000 in medical debt and haven't responded to collection letters. They're legitimate,accredited by the Better Business Bureau since 2007,but legitimacy doesn't mean they're right about your debt.

The Consumer Financial Protection Bureau shows 80+ complaints against RTR since 2020. Common issues: demanding payment on debts that were already paid, refusing to provide proof of the debt, and continuing collection after disputes were filed.

Why You Must Respond to the Lawsuit

You have one job right now: file an Answer with the court before the deadline on your summons. That deadline is usually 20 days in New York, 30 days in New Jersey, and 30 days in Connecticut (though Connecticut allows 35 days for certain service methods).

If you ignore the lawsuit, RTR wins automatically. This is called a default judgment. Once they have a judgment, RTR can:

• Garnish up to 10% of your gross wages in New York (25% in New Jersey and Connecticut)
• Freeze your bank account and seize funds
• Put a lien on your property
• Renew the judgment for up to 20 years

You cannot negotiate these consequences away later. Filing an Answer stops the clock and forces RTR to prove you actually owe the money.

How to Write Your Answer

Your Answer is a legal document that denies RTR's claims and raises defenses. You don't need a lawyer to file one, but you need to follow your state's format.

Start by reading the Complaint RTR filed. They'll list specific claims,usually something like "Defendant owes $8,452.19 for medical services rendered on March 15, 2020." Your Answer must respond to each numbered paragraph.

For every claim, you have three options:

• Admit if you know it's true ("Defendant admits they live in Brooklyn")
• Deny if it's false or you don't have enough information to confirm ("Defendant denies owing $8,452.19")
• Deny for lack of knowledge if you genuinely don't know ("Defendant lacks sufficient knowledge to admit or deny RTR owns this debt")

When in doubt, deny. RTR has to prove their case, not you.

Defenses That Actually Work

After responding to each paragraph, list your affirmative defenses. These are legal reasons the court should rule in your favor. Strong defenses against RTR include:

• Statute of limitations: Medical debt expires after 3 years in New York, 6 years in New Jersey and Connecticut. If RTR is suing on old debt, they lose.
• Lack of standing: RTR must prove they own the debt or have authority to collect it. If they can't produce a valid assignment, they have no case.
• Failure to state a claim: RTR must provide specific details,dates, amounts, services. Vague complaints can be dismissed.
• Payment or settlement: If you already paid part or all of this debt, RTR's records might not reflect it.
• Mistaken identity: Sometimes collectors sue the wrong person with a similar name.

You don't need to prove these defenses in your Answer. You just need to raise them. RTR then has to disprove them at trial.

Filing and Serving Your Answer

Once you've written your Answer, you need to file it with the court and send a copy to RTR's attorney. The Complaint will list the attorney's name and address,usually a law firm that specializes in debt collection.

In New York and New Jersey, you can often file online through the court's e-filing system. Connecticut courts are transitioning to e-filing but still accept paper filings. Check your court's website for instructions.

Send a copy to RTR's attorney by certified mail, return receipt requested. Keep the receipt. If RTR claims they never got your Answer, that receipt is your proof.

Filing fees range from $15-$50 depending on your county. If you can't afford the fee, file a fee waiver application. Courts routinely approve these for people facing debt collection.

What Happens After You File

Filing an Answer transforms the lawsuit. RTR can no longer win by default. They now have to build a case, which costs them time and money. Many debt collectors would rather settle than go to trial.

Within 30-60 days, one of three things will happen:

RTR's attorney contacts you to negotiate. This is common. They'll offer to settle for 40-60% of the balance if you pay in a lump sum, or 70-80% if you set up a payment plan. You can counteroffer. Start at 25% and work up.

The court schedules a conference. Many courts require a settlement conference before trial. A judge or mediator will push both sides to compromise. Come prepared with your defense and a settlement number you can afford.

RTR requests discovery. They might send you interrogatories (written questions) or requests for documents. You must respond within the deadline, usually 30 days. Answer honestly but don't volunteer information they didn't ask for.

Forcing RTR to Prove Their Case

RTR's weakness is documentation. To win at trial, they need to prove:

1. You received medical services
2. The services cost the amount they're claiming
3. You agreed to pay for those services
4. You didn't pay
5. RTR has the legal right to collect

That fifth point is where debt collectors fail. RTR needs an unbroken chain of ownership,from the original hospital to RTR,with signed assignments for each transfer. Many debt buyers can't produce this.

Send RTR a discovery request asking for:

• The original signed contract or admission forms with your signature
• Itemized bills showing what services you received
• The debt purchase agreement proving RTR owns your debt
• All collection account statements showing how they calculated your balance
• Any insurance claims or payments related to this debt

If RTR can't produce these documents, their case collapses. At trial, judges dismiss cases when collectors show up with nothing but computer printouts.

Settlement Strategy That Protects You

Most RTR lawsuits settle before trial. If you decide to negotiate, protect yourself with these terms:

Get it in writing. Never pay a dollar without a signed settlement agreement that states the exact amount, payment deadline, and confirms the debt will be marked "paid in full" or "settled" with credit bureaus.

Never give bank account access. RTR might ask you to set up automatic payments. Refuse. Pay by money order or certified check so they can't pull extra funds.

Demand dismissal with prejudice. Your settlement agreement must require RTR to file a "Stipulation of Dismissal with Prejudice" with the court. This permanently closes the case and prevents RTR from suing you again on this debt.

Never admit the debt. Settlement agreements should say "Defendant denies all liability but agrees to pay $X to resolve this matter." This language protects you if RTR violates the agreement.

If you're considering settlement, our bankruptcy screener can help you compare options. Sometimes bankruptcy eliminates medical debt more effectively than settlement.

When RTR Violates Collection Laws

The Fair Debt Collection Practices Act gives you leverage. If RTR breaks these rules, you can sue them for up to $1,000 plus attorney fees:

• Calling before 8 a.m. Or after 9 p.m. In your time zone
• Calling your workplace after you've told them not to
• Discussing your debt with family, friends, or coworkers
• Threatening to sue if the statute of limitations has expired
• Continuing collection after you've sent a written dispute
• Failing to send a written validation notice within 5 days of first contact
• Misrepresenting the amount you owe or the legal status of the debt

Document violations with dates, times, and recordings if your state allows one-party consent. File a complaint with the Consumer Financial Protection Bureau at consumerfinance.gov. The CFPB tracks patterns and can force RTR to change practices.

If violations are severe, contact a consumer rights attorney. Many work on contingency, meaning they only get paid if you win. The National Association of Consumer Advocates maintains a directory at consumeradvocates.org.

The Nuclear Option: Bankruptcy

If RTR's lawsuit is part of a larger debt problem,if you're juggling multiple collection actions or can't afford any settlement,bankruptcy might be your best move.

Medical debt is unsecured, which means it's easily discharged in Chapter 7 bankruptcy. Once you file, RTR must immediately stop collection and dismiss the lawsuit. The entire process takes 4-6 months, and most people with medical debt pay nothing to creditors.

Chapter 7 works if your income is below your state's median or you pass the means test. The median income for a single person in New York is roughly $67,000, New Jersey is $73,000, and Connecticut is $75,000. If you're over the limit, Chapter 13 lets you pay what you can afford over 3-5 years, then discharges the rest.

Bankruptcy stops wage garnishment, bank levies, and all collection calls. Your credit takes a hit,Chapter 7 stays on your report for 10 years,but if you're already facing judgments, your credit is damaged regardless.

Our bankruptcy filing guide walks through eligibility and the filing process. For many people facing RTR lawsuits, it's the fastest path to a clean slate.

How to Verify Debt Before You Pay Anything

Before negotiating with RTR, confirm the debt is yours and the amount is correct. Send a debt validation letter within 30 days of their first contact. This is your right under the FDCPA.

Your letter should request:

• The name and address of the original creditor
• The date of service that created this debt
• An itemized statement of the original balance and all fees or interest added
• Proof that RTR owns the debt or is authorized to collect it
• Copies of any signed agreements or contracts

Send this letter certified mail to: RTR Financial Services, Inc., 2 Teleport Drive, Suite 302, Staten Island, NY 10311. Once they receive it, RTR must stop collection until they provide verification.

If RTR can't verify the debt, they must cease collection and delete any tradeline from your credit report. If they continue collection without verification, you have grounds for an FDCPA lawsuit.

Contact Information for RTR Financial Services

If you need to reach RTR directly:

• Phone: 718-668-2881
• Address: 2 Teleport Drive, Suite 302, Staten Island, NY 10311
• Website: RTR has a dispute form on their site, though written disputes sent via certified mail create a stronger paper trail

Always communicate in writing. Phone calls leave no record. Emails can be ignored. Certified letters create evidence for court if RTR violates your rights.

Your Next Move

If RTR Financial Services sued you, your priority is filing an Answer before the deadline. You can draft one yourself using your court's forms, or you can use a document preparation service that specializes in debt collection defense.

Once you've filed, assess your options: fight the case, negotiate a settlement, or file bankruptcy. The right choice depends on whether you have other debts, whether RTR can prove their case, and what you can realistically afford.

If you're unsure where you stand financially, start with our quick bankruptcy screener. It takes 2 minutes and shows you whether bankruptcy would eliminate this debt entirely.

RTR is counting on you to ignore this lawsuit. Don't give them the satisfaction.