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What to Do If You've Been Sued by Razor Capital

George Simons | January 30, 2025

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: To settle debt with Razor Capital, verify the debt, negotiate a settlement offer, and get terms in writing. Respond promptly to avoid legal action or default judgment. Solo can help you respond to a lawsuit and settle outside of court.

When you are past due on a debt, the original creditor may eventually transfer your account to a third-party debt collection agency. In some cases, this third-party collection agency is Razor Capital.

Razor Capital will then take over the responsibility of collecting the debt and may bring a lawsuit against you. Whether you are confused or unsure how to respond, you must educate yourself to present the proper defense. Below, we explore everything you need to know about Razor Capital and how to respond to the lawsuit.

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What is Razor Capital?

Razor Capital is a legitimate debt collection company that works for creditors to collect outstanding debts. It has been in business since 2008 and has its headquarters in Bloomington, Minnesota. The company specializes in resolving debts for individuals who have defaulted on payments and handles cases in various sectors.

Razor Capital uses legal means to collect debts, which can involve contacting debtors, negotiating settlements, or pursuing legal action if necessary. Their contact information is as follows:

Who does Razor Capital collect for?

Razor Capital collects debts for various creditors, including credit card companies, healthcare providers, retailers, and other businesses that offer products or services on credit.

Their role is to assist these businesses in recovering money owed by consumers who have missed payments or fallen behind on their financial obligations. So, do not be surprised if you receive a lawsuit letter with Razor Capital as the plaintiff instead of your original creditor.

Read Razor Capital reviews online

While it's always a good idea to research a company before interacting with them, debt collection agencies often receive mixed reactions that may be overwhelming. Therefore, you must interact with these reviews with an open mind and understand that how you approach Razor Capital determines the experience you'll have. Here are a few sample reviews to look at:

Individual experiences in the reviews may depend on specific circumstances, such as the nature of the debt or the creditor's actions. Let your approach be that of wanting to work with Razor Capital to clear your debt, and you'll have a more positive experience.

The timeline of a Razor Capital lawsuit

Anytime you are being sued for debt by Razor Capital, you should understand what the process is like. The timeline will vary from person to person, but generally, the timeline is as follows:

  1. Notice of summons: You will receive a notice of either a phone call or a letter regarding the debt collection lawsuit. This is at least 180 days past due.
  2. Debt Validation Letter: Within five days of contacting you, Razor Capital must send you a Debt Validation Letter stating how much you owe, as well as the name of the creditor, and how to dispute the debt.
  3. Verification letter: If you do not owe the debt, you can request a verification letter. This must be sent within 30 days.
  4. Response: If the debt is yours, you must respond and negotiate a settlement or payment plan.
  5. Notice: If you don't repay or settle the debt, you will be given a court date for when to appear regarding the debt lawsuit.
  6. Non-response: If you do not show up in court, the court will rule in favor of the debt collector.
  7. Default judgment: This is when the court allows the debt collector to garnish your wages or place a lien against your property. They may even be able to take money directly from your bank account.

Respond to your debt collection lawsuit with SoloSuit and win in court.

Here's what to do if you've been sued by Razor Capital

Respond to the lawsuit

Whether the debt is yours or not, you will need to respond to the debt collection lawsuit. Do not admit fault, but respond with an Answer to avoid a default judgment. If you fail to respond in a timely manner, the debt collector can obtain a default judgment. They can garnish your wages, put liens on your property, or even directly take money from your accounts.

If you disagree with anything that is being said in the debt collection lawsuit, then you will file a response to the lawsuit and be able to contest it. You can even ask the court to dismiss the lawsuit. In this case, you must bring documentation to show the following:

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

You can bring evidence if you feel your rights have been violated. Violations of the FDCPA are not tolerated and include the following:

  • Contacting a consumer at odd hours (outside the hours of 8 a.m. and 9 p.m.)
  • Harassment using profanity or threatening harm.
  • Threatening to take your property without the legal right to do so.
  • Contacting you once you are working with a lawyer.
  • Make fraudulent claims, such as misrepresenting who they are or saying you owe something different than what you do.

Sued by Razor Capital? Draft and file your Answer in minutes.

Challenge the lawsuit

Because debt collectors are third-party agencies hired by the original creditor, they usually have purchased your debt for pennies on the dollar. This means you can challenge the lawsuit and see if they can prove it is yours. Reasons to challenge a lawsuit 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, you may wish to accept the judgment and end the collection suit. You may or may not accept a debt collection lawsuit for various reasons. You may accept the judgment but also want to settle out of court, or you may be considered “judgment proof.” This means that you have limited wages, so you will not be able to have your wages garnished.

Use Solo to respond to debt collectors fast.

Settle your debt with Razor Capital.

If you owe the debt, you can try to negotiate a settlement. This can allow you to at least pay less than the original amount owed, plus penalties and interest on the debt. This can also help you avoid going to court, and this is often the best option for both you and the debt collector.

Other options you may have:

  • Exempt Status: Depending on the state and how much you owe, if you have limited wages or assets, then you can be exempt from wage garnishment. This means that you are judgment-proof.
  • Filing for bankruptcy: If you are in a bad financial situation, filing for bankruptcy may be an option. If you file a Chapter 7 bankruptcy then all your debts will be forgiven. If you file a Chapter 13 bankruptcy, you can usually negotiate a lower amount to pay. However, bankruptcy can have a devastating impact on your financial future and should always be the option of last resort.

Whatever option you choose could have long-term effects on your financial future. Take the time to carefully consider your choices and select the one that best fits your situation.

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Make an Offer

Settle the debt with Razor Capital by following these steps

The following are the steps to get you started with settling the debt with Razor Capital:

  1. Take a look at your income, savings, and monthly expenses to determine how much you can afford to pay toward the debt.
  2. Let Razor Capital know you want to settle the debt. It’s a good idea to put everything in writing so you have a record of the conversation.
  3. Write a letter offering to pay part of the debt. It’s best to start with a smaller amount than you’re willing to pay.
  4. If Razor Capital comes back with a counteroffer, be ready to discuss it and negotiate.
  5. Once you agree on the settlement, ask for a written agreement that outlines the terms.
  6. Pay the agreed amount on time and keep a record of everything.

SoloSettle can help you manage the debt settlement process. This tool allows you to track your correspondence with the debt collector, make secure payments, and protect your financial information. To learn more about how to negotiate with Razor Capital to settle your debt for less, watch the following video.

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