Cavalry Portfolio Services often sues to collect old debts like credit cards or loans. If got a debt lawsuit from them, don’t ignore it. This could lead to a default judgment, wage garnishment, or frozen bank accounts.
Getting sued by Cavalry Portfolio Services is stressful, but knowing your rights and how to respond can help you avoid serious financial trouble.
This guide breaks down what to do if you're facing a lawsuit and how to protect yourself.
Who is Cavalry Portfolio Services?
Cavalry Portfolio Services LLC operates as one of the nation's largest debt buyers, purchasing charged-off accounts from original creditors at significantly reduced rates. They often buy it for pennies on the dollar. The company then attempts to collect the full original debt amount plus interest and fees from consumers.
Based in Westbury, New York, Cavalry Portfolio Services belongs to a network of related entities including Cavalry SPV I LLC, Cavalry Investments LLC, and other subsidiaries. This business model centers on acquiring portfolios of delinquent consumer debt from credit card companies, banks, medical providers, and telecommunications companies.
The company operates across multiple states and files hundreds of collection lawsuits each year against consumers. Their aggressive litigation strategy focuses on obtaining default judgments when consumers fail to respond to lawsuits, allowing them to pursue wage garnishment, bank account levies, and asset seizure.
Is Cavalry Portfolio Services a Legitimate Company?
Yes, Cavalry Portfolio Services is a legitimate debt collection agency. They purchase charged-off debts from major creditors like banks, credit card companies, and lenders. While their collection tactics have faced legal scrutiny, they operate legally and are known to aggressively pursue collections, including filing lawsuits.
Does Cavalry Portfolio Services Sue?
Absolutely. Cavalry Portfolio Services regularly files lawsuits to collect on delinquent debts. If you ignore their calls or letters, they may escalate to legal action. Once sued, you risk default judgment, which can lead to wage garnishment or bank account levies—so it’s critical to respond promptly.
The Legal Landscape: Cavalry Portfolio Services Track Record
Consumers have sued Cavalry in over a dozen class action lawsuits, highlighting significant concerns about their collection practices. These legal challenges reveal patterns of problematic behavior that consumers should understand when developing defense strategies.
Notable legal issues include:
Fair Debt Collection Practices Act (FDCPA) Violations: Courts have certified class actions claiming Cavalry Portfolio sent false, misleading and unfair settlement letters, violating the FDCPA. These violations often involve unclear debt documentation, threatening language, and failure to properly identify themselves as debt collectors.
Telephone Consumer Protection Act (TCPA) Violations: Cavalry has reached settlements to end claims that the company violated the Telephone Consumer Protection Act by calling consumers without their consent, creating a Cash Fund of up to $6,150,000.
Statute of Limitations Issues: Multiple lawsuits have challenged Cavalry's practice of pursuing debts beyond the legal time limits for collection, with courts finding they failed to disclose when debts were too old to legally enforce.
Recommended Content: Velocity Investments LLC: Is This Debt Collector Legit & How to Respond
Immediate Response Strategy: Your First 30 Days
Step 1: Verify Service of Process
Confirm you've been properly served with legitimate court documents. Cavalry Portfolio Services typically hires local collection attorneys to file lawsuits in state courts. The summons and complaint should include:
- Court case number and filing date
- Specific debt amount claimed
- Original creditor information
- Attorney contact details
- Response deadline (typically 20-30 days)
Step 2: Calculate Response Deadline
State laws vary, but most jurisdictions require responses within 20-30 days of service. Missing this deadline results in default judgment, allowing Cavalry to pursue immediate collection actions including wage garnishment and bank account seizure.
Related Content: What To Do If You Have Been Sued By Debt Collectors
Step 3: Document Everything
Create a comprehensive file containing:
- All correspondence from Cavalry Portfolio Services
- Original credit agreements (if available)
- Payment history records
- Credit report entries
- Previous communication logs
Your Legal Defenses Against Cavalry Portfolio Services
Debt Validation Challenges
As debt buyers, Cavalry often lacks complete documentation proving debt ownership and accuracy. Effective challenges include:
- Chain of Title Issues: Demand proof of valid assignment from the original creditor through each subsequent debt buyer. Many debt buyers cannot provide complete documentation showing legal ownership.
- Account Statements and Records: Request detailed account statements, payment history, and original credit agreements. Cavalry frequently cannot produce adequate documentation supporting their claims.
- Standing to Sue: Challenge Cavalry's legal right to collect the debt without proper assignment documentation and proof of ownership.
Statute of Limitations Defense
Each state establishes time limits for debt collection lawsuits. Common time frames include:
- Credit card debt: 3-6 years
- Medical debt: 3-6 years
- Personal loans: 3-6 years
- Written contracts: 4-6 years
Calculate the statute of limitations from the date of last payment or account activity, not the charge-off date. If the debt exceeds your state's time limit, this provides a complete defense to the lawsuit.
You might be interested: Statute of Limitations on Debt in Texas: What You Need to Know
Fair Debt Collection Practices Act Violations
Document any FDCPA violations for potential counterclaims:
- Failure to provide debt validation notices
- Calling outside permitted hours (before 8 AM or after 9 PM)
- Contacting you at work after being told not to
- Using threatening or abusive language
- Discussing your debt with third parties
- Misrepresenting debt amounts or legal status
Identity Theft and Mistaken Identity
If the debt doesn't belong to you, gather evidence including:
- Police reports for identity theft
- Fraud alerts on credit reports
- Documentation showing you never had accounts with the original creditor
- Proof of residence during account opening periods
Cavalry Portfolio Services Settlement Negotiation Strategies
Understanding Cavalry's Business Model
Since Cavalry purchases debts at steep discounts, they often accept settlement offers significantly below the claimed amount. Their acquisition costs typically range from 2-10 cents per dollar of face value, providing substantial room for negotiation.
Effective Settlement Approaches
Lump Sum Settlements: Offer 20-40% of the claimed debt for immediate payment and full satisfaction. Cavalry often accepts these offers to avoid litigation costs and uncertain collection outcomes.
Payment Plans: If lump sum payment isn't feasible, propose structured payment plans with clear terms and consequences for default.
Settlement Documentation: Ensure all settlement agreements include:
- Exact payment terms and deadlines
- Full satisfaction language
- Dismissal of lawsuit with prejudice
- Agreement not to report settled debt as taxable income
- Credit report correction requirements
Timing Considerations
Settlement negotiations often prove most effective:
- Before answering the lawsuit
- After filing an answer but before discovery
- During court-ordered mediation programs
- Just before trial when litigation costs escalate
Court Response Procedures
Filing Your Answer
Draft a formal answer addressing each allegation in Cavalry's complaint. Common response strategies include:
General Denial: Deny all allegations requiring Cavalry to prove every element of their case.
Affirmative Defenses: Assert specific legal defenses including:
- Statute of limitations
- Lack of standing to sue
- Failure to state a claim
- Payment or accord and satisfaction
- Unconscionability
Counterclaims: Assert violations of consumer protection laws for potential monetary damages and attorney fee awards.
Discovery Process
Use formal discovery tools to obtain evidence supporting your defense:
Interrogatories: Written questions requiring Cavalry to provide detailed information about debt ownership, calculation methods, and collection practices.
Requests for Production: Demand relevant documents including:
- Original credit agreements
- Complete payment history
- Assignment and purchase agreements
- Internal collection notes and communications
Requests for Admission: Force Cavalry to admit or deny specific facts about the debt and their collection practices.
Alternative Resolution Options
Debt Management Plans
Work with nonprofit credit counseling agencies to develop structured repayment plans that may satisfy Cavalry while avoiding litigation risks.
Bankruptcy Protection
Chapter 7 or Chapter 13 bankruptcy can discharge or restructure debts, including those pursued by Cavalry Portfolio Services. Consult with bankruptcy attorneys to evaluate this option based on your complete financial situation.
Hardship Programs
Some debt buyers, including Cavalry, offer hardship programs for consumers experiencing financial difficulties due to medical issues, unemployment, or other circumstances beyond their control.
Must Read: How to Fix a Debt Issue With Harris and Harris Collections
Protecting Your Rights Against Cavalry Portfolio Services
Documentation Requirements
Maintain detailed records of all interactions with Cavalry Portfolio Services and their attorneys:
- Date and time of all communications
- Names of representatives contacted
- Summary of conversations and agreements
- Copies of all written correspondence
Communication Best Practices
- Written Communication: Conduct important communications in writing to create permanent records and avoid misunderstandings.
- Recorded Calls: If your state permits single-party consent recording, document phone conversations for evidence of FDCPA violations or settlement agreements.
- Professional Representation: Consider hiring consumer protection attorneys experienced in debt collection defense, especially for complex cases or significant debt amounts.
Credit Report Monitoring
Monitor credit reports throughout the process to ensure:
- Accurate reporting of lawsuit and settlement status
- Removal of disputed or settled debts
- Correction of any inaccurate information
Long-Term Financial Recovery
Rebuilding Credit After Resolution
Develop strategies for credit recovery following lawsuit resolution:
- Secured Credit Cards: Use secured cards to establish positive payment history and rebuild credit scores.
- Credit Monitoring: Regularly review credit reports to track improvement and identify any remaining issues.
- Budget Management: Implement sustainable budgeting practices to prevent future debt problems.
Learning From the Experience
Use this experience to develop better financial practices:
- Emergency fund building
- Debt management strategies
- Credit monitoring habits
- Understanding of consumer rights
When to Seek Professional Help
Consider professional assistance if you encounter:
- Complex legal issues beyond your understanding
- Multiple debt collection lawsuits
- Potential FDCPA violations worth pursuing
- Settlement negotiations requiring legal expertise
- Asset protection concerns
ASAP Credit Repair has helped thousands of clients resolve issues with debt collectors before they escalate into lawsuits, offering proactive solutions to protect your credit and financial future.
Don’t wait until it’s too late—reach out today for a free consultation and take back control of your credit.
"Thanks to ASAP Credit Repair, I avoided a lawsuit and finally got peace of mind. They knew exactly how to handle the collectors." – Marissa D., Orlando, FL
State-Specific Considerations
Debt collection laws vary significantly by state, affecting:
- Statute of limitations periods
- Wage garnishment limits
- Homestead exemptions
- Court procedures and requirements
- Consumer protection laws
Research your state's specific laws or consult with local attorneys familiar with debt collection practices in your jurisdiction.
The Reality of Default Judgments
Ignoring Cavalry Portfolio Services lawsuits leads to default judgments in the vast majority of cases. Default judgments grant Cavalry broad collection powers including:
- Wage garnishment (subject to state limits)
- Bank account levies
- Asset seizure and liens
- Additional interest and attorney fees
You must file an answer to their summons and complaint or risk losing the lawsuit by default. Ignoring a summons will not make it go away, making prompt response essential for protecting your rights and assets.
Don’t Wait for Cavalry Portfolio Services to Sue You
If you've received letters or phone calls from Cavalry Portfolio Services but haven't yet been sued, now is the best time to act. Taking early action can help you avoid a lawsuit altogether and possibly resolve the debt on your terms.
Step 1: Request Debt Validation in Writing
Under the Fair Debt Collection Practices Act (FDCPA), you have the right to request a debt validation within 30 days of their first contact. This forces Cavalry to prove:
- They own the debt
- The amount is accurate
- You are the correct debtor
Tip: Send your request via certified mail with a return receipt for legal proof.
Step 2: Review Your Credit Report
Get a free copy of your credit report from AnnualCreditReport.com and check for:
- The reported balance
- Any errors or duplicates
- Charge-off dates (for statute of limitations defense)
Disputing incorrect entries early may prevent Cavalry from taking further action.
Step 3: Start Building a Settlement Strategy
Even before a lawsuit, Cavalry may be open to negotiating a settlement. Prepare by:
- Reviewing your financial situation
- Saving for a lump-sum offer (20–40% of the debt)
- Contacting them with a written proposal
- Getting any agreement in writing before paying
Settling before a lawsuit can save you from court fees, interest, and potential wage garnishment.
Step 4: Avoid Verbal Communication Without Documentation
Debt collectors may record calls or misrepresent conversations. Keep everything in writing and avoid admitting to the debt, especially if it’s beyond the statute of limitations.
Step 5: Talk to a Consumer Law Attorney (Even for a Free Consultation)
Many consumer protection attorneys offer free or low-cost consultations. They can:
- Review your case
- Help you negotiate
- Identify any FDCPA violations
- Advise if the debt is even legally enforceable
Why This Matters
Taking these steps before a lawsuit can:
- Help you avoid legal action altogether
- Strengthen your legal position if a lawsuit does come
- Give you time to prepare financially and emotionally
The worst strategy is doing nothing. Cavalry Portfolio Services often relies on consumers ignoring early warning signs. Don't let that be you.
Final Recommendations: Responding to a Debt Buyer Lawsuit
Successfully resolving Cavalry Portfolio Services lawsuits requires prompt action, thorough preparation, and strategic thinking.
Key success factors include:
- Immediate Response: Never ignore lawsuit documents or hope they disappear
- Document Verification: Demand proof of debt ownership and accuracy
- Legal Defense: Assert all available defenses and counterclaims
- Strategic Negotiation: Leverage Cavalry's business model for favorable settlements
- Professional Guidance: Seek experienced legal counsel for complex situations
Remember that if the debt is accurate, you can dispute the amount or negotiate a debt settlement. The most important thing is to respond and take action rather than allowing default judgments that severely limit your options.
With proper preparation and a strategic response, consumers can successfully defend against Cavalry Portfolio Services lawsuits while protecting their financial future and legal rights. The solution is understanding your options, acting promptly, and leveraging the legal protections available under federal and state consumer protection laws.
Need Help With Credit Disputes or Rebuilding After Debt collection Issues?
At ASAP Credit Repair, we’ve handled thousands of debt-related concerns just like yours. From credit reporting errors to collection account removals. Our expert team is ready to guide you step by step toward restoring your credit and taking back control of your financial life.
SEE REAL RESULTS BELOW!
Contact us today and let’s get your credit back on track, fast!