Sued by Razor Capital? Here’s What to Do Right Now

You missed some debt payments. Now Razor Capital is after you.

Your original creditor transferred your account to a third-party debt collector. Razor Capital took over. They want their money.

The company may file a lawsuit against you. You need to know how to defend yourself.

Here’s everything you need to know about Razor Capital lawsuits and how to fight back.

What Is Razor Capital?

Razor Capital is a legitimate debt collection company. They collect outstanding debts for creditors.

The company has operated since 2008. Their headquarters is in Bloomington, Minnesota.

Razor Capital uses legal means to collect debts. They contact debtors, negotiate settlements, and pursue legal action when necessary.

You can reach them at:

• Phone number: 1-888-776-8248
• Address: 8000 Norman Center Dr. Ste 350, Bloomington, MN 55437-1118
• Email: info@razor-capital.com
• Website: https://www.razor-capital.com/

Who Does Razor Capital Collect For?

Razor Capital collects debts for various creditors. Credit card companies hire them. Healthcare providers use their services.

Retailers and other businesses also work with Razor Capital. Any company offering products or services on credit may use them.

Their job is simple: recover money owed by consumers who missed payments.

Don’t be surprised if Razor Capital appears as the plaintiff. Your original creditor sold them the debt.

Read Razor Capital Reviews Online

Research is always smart before interacting with any company. Debt collection agencies receive mixed reviews.

Keep an open mind. Your experience depends on how you approach them.

Check out these review sources:

• Better Business Bureau reviews
• CFPB consumer database complaints
• Google reviews

Individual experiences vary based on specific circumstances. The nature of your debt matters. How Razor Capital approached your case matters.

Approach Razor Capital with a willingness to resolve your debt. You’ll likely have a better experience.

The Timeline of a Razor Capital Lawsuit

Understanding the lawsuit process helps you prepare. Timelines vary by person, but here’s the general flow:

1. Notice of summons: You receive a phone call or letter about the debt lawsuit. Your debt is at least 180 days past due.
2. Debt Validation Letter: Within five days of contact, Razor Capital must send you a letter. It states how much you owe, the creditor’s name, and how to dispute.
3. Verification letter: If the debt isn’t yours, request verification. They must respond within 30 days.
4. Response: If the debt is yours, you must respond. Negotiate a settlement or payment plan.
5. Notice: If you don’t repay or settle, you get a court date for the debt lawsuit.
6. Non-response: If you skip court, the court rules in favor of the debt collector.
7. Default judgment: The court allows wage garnishment or property liens. They can take money directly from your bank account.

our partner Solo can help you respond to the lawsuit and settle outside of court.

What to Do If Razor Capital Sued You

Respond to the Lawsuit

You must respond whether the debt is yours or not. Never ignore a debt collection lawsuit.

Don’t admit fault. File an Answer to avoid a default judgment.

Failing to respond lets the debt collector obtain a default judgment. They can garnish your wages. They can put liens on your property. They can take money directly from your accounts.

If you disagree with the lawsuit claims, file a response. Contest it in court.

You can ask the court to dismiss the lawsuit. Bring documentation showing:

• Who the creditor is
• If you paid the debt
• If the amount is accurate
• If the debt is past the statute of limitations

Bring evidence if Razor Capital violated your rights. The FDCPA protects you from:

• Contacting you at odd hours (outside 8 a.m. to 9 p.m.)
• Harassment using profanity or threatening harm
• Threatening to take your property without legal right
• Contacting you once you have a lawyer
• Making fraudulent claims or misrepresenting who they are

Challenge the Lawsuit

Debt collectors are third-party agencies. They usually purchased your debt for pennies on the dollar.

Challenge the lawsuit. Make them prove the debt is yours.

Valid reasons to challenge include:

• Wrong person being sued
• You already paid the debt
• The debt amount is wrong
• The statute of limitations has passed

Accept the Judgment

Sometimes accepting the judgment makes sense. You may want to end the collection suit.

Reasons vary. You may want to settle out of court. You might be “judgment proof.”

Judgment proof means you have limited wages. Your wages can’t be garnished because you don’t earn enough.

Settle Your Debt With Razor Capital

If you owe the debt, negotiate a settlement. Pay less than the original amount owed.

Settling helps you avoid court. It’s often the best option for both parties.

Other options you have:

• Exempt Status: Depending on your state and debt amount, limited wages or assets may exempt you from wage garnishment. You’re judgment-proof.
• Filing for bankruptcy: If you’re in severe financial trouble, bankruptcy may help. Chapter 7 forgives all debts. Chapter 13 lets you negotiate lower payments. However, bankruptcy devastates your financial future. Make it your last resort.

Whatever you choose affects your financial future long-term. Consider your options carefully.

Select the option that best fits your situation.

How to Settle Debt With Razor Capital

Follow these steps to settle your Razor Capital debt:

1. Review your income, savings, and monthly expenses. Determine how much you can afford to pay.
2. Tell Razor Capital you want to settle. Put everything in writing for your records.
3. Write a letter offering to pay part of the debt. Start with less than you’re willing to pay.
4. Be ready to negotiate if Razor Capital counteroffers. Discuss terms back and forth.
5. Once you agree on settlement terms, get a written agreement. Review all terms carefully.
6. Pay the agreed amount on time. Keep records of everything.

our partner Solo can help you manage the debt settlement process. Track your correspondence with the debt collector. Make secure payments. Protect your financial information.