Joe Dye Culik
TBF Financial Among the Debt Buyers Suing NC Business Owners for Commercial Debts
Every business has its ups and downs, and sometimes business owners sometimes run into problems servicing debts. If the creditor refuses to renegotiate the debt, it may go into default. What happens after the default often impacts how the issue will ultimately be resolved, and, most importantly, what the ultimate effect will be on your business.
One company that purchases defaulted commercial debts of North Carolina businesses is TBF Financial, an Illinois limited liability company owned by two attorneys. TBF Financial, however, is not a law firm, it is what is called a “debt buyer.” Debt buyers purchase old or defaulted accounts from the original creditors to whom the accounts were owed. The debts are often purchased for pennies on the dollar. Debt buyers then commence collecting on the debts, either through dunning letters and phone calls, or, frequently, filing debt-collection lawsuits in state court.
TBF Financial says that it purchases all sorts of commercial debts, including charged-off equipment leases, written-off commercial bank loans, lines of credit, engages in commercial debt buying services for online small business lenders. Based on court records that our law firm has reviewed, TBF Financial has filed debt-collection lawsuits against businesses and individuals in county courts across North Carolina.
What does it mean if you are a North Carolina business owner and you are notified that TBF Financial purchased your account? Based on the records of TBF Financial’s North Carolina court filings, it regularly files collection lawsuits to collect the debts they are allegedly owed. Thus, there is a good chance that a lawsuit will soon be filed.
If a lawsuit was already filed against you by TBF Financial, the most important thing is to respond quickly. Under the North Carolina court rules, you usually only have 30 days to file an answer with the court. Often, however, accounts purchased by debt buyers like TBF Financial can be negotiated into favorable settlements. If the debt buyer does not have adequate documentation establishing that it purchased the account, it may be possible to file a motion to dismiss the case entirely.
DYE CULIK PC is a Charlotte, North Carolina law firm that regularly handles lawsuits, negotiations, and settlements of debts and accounts being collected by creditors, banks, and debt buyers like TBF Financial. If your business has been contacted in relation to a debt like this, call us at 980-980-3557 to see how we can help.