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How to Settle Debt with LTD Collections

George Simons | January 24, 2025

Fact-checked by Patrick Austin, J.D.

Patrick Austin
Attorney from George Mason
Patrick Austin, JD

Patrick Austin is a licensed attorney with a background in data privacy and information security law. Patrick received his law degree at George Mason University's Antonin Scalia Law School, where he served as the Editor-in-Chief for the National Security Law Journal.

George Simons
Co-Founder of SoloSuit
George Simons, JD/MBA

George Simons is the co-founder and CEO of SoloSuit. He has helped Americans protect over $1 billion from predatory debt lawsuits. George graduated from BYU Law school in 2020 with a JD-MBA. In his spare time, George likes to cook, because he likes to eat.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: LTD Collections, also known LTD Financial Services, is a debt collection agency that may sue you for unpaid debt. To settle, draft and file a written Answer with the court to avoid default judgment. Then, negotiate with LTD Collections to settle the debt for less. Solo can help.

U.S. researchers estimate that 28% of Americans struggle with debt in collections. If you are one of those people, it might be comforting to know that you’re not the only person who has past-due debt. But it may still be unpleasant to have debts in collections even though it is fairly common, and a debt collector agency like LTD Collections can sue you.

If you are not familiar with what to expect when sued for a debt, it can be an unsettling experience. Despite the overwhelming feelings, ignoring the court Summons and Complaint is a mistake. Our article will help you discover how debt collection lawsuits work and the steps you can take if LTD Collections sues you to protect your rights and resolve your outstanding debts while saving money.

Settle debt with LTD Collections

You can negotiate debt settlement at any stage of the collections process. SoloSettle makes it easy.

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What is LTD Collections?

Also known as LTD Financial Services LP, LTD Collections is a legit debt collection agency established in 1993 and headquartered in Houston, Texas.

Need to contact a collector to settle your debt? Use the LTD Collections phone number and other contact information listed below:

  • LTD Collections Phone: (800)-741-2100
  • Email: customercare@ltdfin.com
  • Address: 3200 Wilcrest Drive,Suite 600 Houston, Texas 77042

Alternatively, you can negotiate and settle debt online with the help of SoloSettle.

Who does LTD Collections collect for?

As a nationally recognized, top-tier collection agency, LTD Financial Services provides collection services to leading creditors.

Services offered by LTD include:

  • Business Process
  • Outsourcing
  • 1st party recoveries
  • 3rd party recoveries

The Fair Debt Collection Practices Act (FDCPA) gives you rights that can protect you

Yes. Federal law regulates third-party collectors' practices, so exercising your rights can help you regain control of your debt collection experience. Below are five ways the Fair Debt Collection Practices Act protects you:

  • LTD Collections can't contact you before 8:30 a.m. or after 9:00 p.m.
  • It is against the law for LTD Collections to harass or abuse you in an attempt to collect debts.
  • Debt collectors are prohibited from making false, deceptive, or misleading representations.
  • They cannot collect more than you owe on a debt, which may include fees and interest.
  • LTD Collections must prove that you owe the debt. If they don’t, you should request a debt validation by sending a Debt Validation Letter. In response, LTD Collections must confirm the following: proof that the debt amount is accurate, that you actually owe it, and that they have rights to collect it.
  • If LTD Collections has violated the FDCPA when communicating with you about a debt, you can report them and even be eligible for up to $1,000 per violation.

Consider Engaging with LTD Collections to Try and Negotiate a Settlement

If the amount owed is simply too much for you to pay at this time, it may be worthwhile to contact LTD Collections and try to negotiate a debt settlement. For context, the debt settlement process is relatively straight-forward: contact the debt collector and offer a lump-sum payment that is less than the amount owed. Debt collectors like LTD Collections are open to such a proposal since they get at least partial payment on your debt and you get the rest of the debt forgiven.

If you are interested in attempting to engage with debt settlement negotiations, then take these steps:

  1. If LTD Collections filed a debt collection lawsuit, make sure to respond in a timely manner.
  2. Assess what you can reasonably afford to pay based on the amount you owe. For example, if you owe $6,000 but calculate that you can only afford to pay $3,000, then this calculation can give you a guide during settlement talks.
  3. Convey your proposed settlement offer to LTD Collections. You can call them, send an email, or write a letter.
  4. Be prepared for a counter-offer and to engage in multiple rounds of negotiations.
  5. If you can negotiate a settlement agreement, get the terms in writing.

To learn more about debt settlement negotiation, check out this video explaining how you can negotiate a debt settlement on your own, with tips directly from a debt lawyer:

SoloSettle makes it easy to start the debt settlement negotiation process. Keep in mind that many debt collection agencies are willing to settle for less than the original amount, because often they purchase the debt for pennies on the dollar.

Respond to an LTD Collections lawsuit

LTD Collections legal notices and papers won't disappear if you ignore them. Contrary to what you may have seen on TV, refusing to accept the lawsuit's delivery or "service" will not stop things. Your absence will not affect the case's progress, and if you don't show up in court, the debt collector may win when the court orders a default judgment against you.

With a default judgment, LTD Collections can garnish your wages or bank account and put a lien on your property as payment for the debt. They can request additional awards from the court, like collection costs, interest, and attorneys' fees. The last thing you want is a default judgment. Below, we describe three steps you can take to respond to your lawsuit and avoid a default judgment.

Don’t like reading? You can watch this video instead:

1. Answer every Complaint

Respond to the debt lawsuit, within your state’s deadline, with a written Answer.. In your Answer, respond to each claim listed in the Complaint document with "admit," "deny," or "deny due to lack of knowledge".

Keep in mind that most attorneys recommend denying as many claims as possible. This forces LTD Financial Services to prove each of their claims. If they don’t have enough evidence or documentation to do so, you might just win the case.

Below is an example.

Example: Vinny is being sued by LTD Collections in California. He uses SoloSuit to draft and file his Answer before California’s deadline, which is 30 days. In his Answer document, Vinny denies the majority of the claims that LTD Collections has made that were listed in the court Complaint document. This forced LTD Collection to prove each claim that he denied, and when they realized they didn’t have evidence of each claim, they decided to dismiss the case instead of continuing to pursue the debt.


Draft your Answer document in minutes online.

2. Assert your affirmative defenses

As the meat of the lawsuit defense, the affirmative defenses are the most important. They are legal reasons why you might not owe LTD Collections any money or why you should pay less than they demand. Common defenses include:

  • It is not your debt.
  • You have already paid the debt.
  • The debt is past the statute of limitations in your state. When you have not paid or added to debt for several years, you may be able to claim that the statute of limitations has expired for the creditor to sue you.
  • A bankruptcy discharged the debt.
  • The plaintiff is unknown to you.
  • You do not owe the plaintiff the amount they claim. Sometimes, the amount allegedly due on an account differs from what you owe. There are several reasons for this, including: the payment was not applied, fees and interest were incorrectly added, unjustified charges were applied, etc.
  • They are collecting debts without a license: LTD Collections must have licenses. As an example, in New York City Administrative Code, Section 20-489(a), which mirrors the federal statute, "debt collection agencies" are defined as "persons engaged in businesses whose primary purpose is to collect or attempt to collect debts owed, due regularly, or asserted to be owed.". This law states: "It shall be unlawful for any person to act as a debt collector."

Let’s take a look at another example.

Example: When Vinny gets sued by LTD Collections in California, he feels confused because he doesn’t remember the debt. After doing some research, he learns that the debt came from an old credit card account that has been inactive for over four years. Since the statute of limitations on credit card debt is four years in California, LTD Collections has no legal standing. Vinny uses Solo to respond to the lawsuit. In his Answer document, Vinny lists the expired statute of limitations as one of his affirmative defenses. This prompts LTD Collections to drop the case.


Before you file an Answer, you should consider any defenses you may have or other factors that will affect the outcome.

Make the right affirmative defense the right way with Solo.

3. File the Answer in court and serve LTD's attorney

As mentioned above, you must file your Answer to the debt lawsuit before the deadline outlined by your state’s laws. Most courts accept filings through the mail, but some required electronic filing. If you prefer to file your Answer in person, you can print it out and take it to the county clerk's office in the relevant county.

SoloSuit can file your Answer for you in all 50 states. You can trust us to complete your Answer document and file it with the court, including free delivery to LTD Collections' attorney for you.

Solo can help you

The process of finding an attorney is stressful and expensive. But Solo empowers you to represent yourself in court by giving you the resources you need to do so confidently. You can negotiate with debt collectors such as LTD Collections, and you don’t always need a lawyer in order to do it.

Solo helps with the following:

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How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Debt collector guides

Are you being contacted by a debt collector? We’re making guides on how to resolve debt with each one.

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If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

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Debt collection FAQs

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Debt collection documents and templates

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State debt collection laws

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote guides on each state’s statutes and more.

Stop collection calls

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Wage garnishment

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in your state, plus other wage garnishment resources.

The Debt Hotline

Hosted by Team Solo, The Debt Hotline breaks down debt and personal finance topics with help from attorneys, financial experts, and industry pros. We respond to real questions to help you navigate debt with knowledge and courage.

Other debt resources


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