Discovery Objections in Debt Collection Lawsuits. Both Sides Play Defense

In my last post, I discussed using discovery as a tool to determine any weaknesses in the creditor’s case as part of your debt defense. But discovery is a two-way street. Whether you are the debtor (Defendant) or the collector (Plaintiff), discovery objections can be filed and are common in debt collection lawsuits.

By Alexander Hernandez, J.D., Professor, and Author of Consumer Bankruptcy Law (Routledge).

Discovery Objections by the Defendant: Protecting Privacy and Preventing Overreach

Debt collectors often use broad discovery as a “fishing expedition” to see if a debtor has assets worth seizing later.

Relevance to Liability: Collectors may ask for your current bank statements or tax returns. But since the case has not been finalized yet in the Plaintiff’s favor, why would the ability to collect be an issue? Collecting on the judgment should be an issue upon a judgment being entered in favor of the Plaintiff/creditor.

In this case, the Defendant or Debtor can file an objection with the court. For example:

The Objection: “The Defendant objects to this request as irrelevant to the subject matter. The Defendant’s current financial status has no bearing on whether the alleged debt was validly incurred or whether the Plaintiff owns the account.”

The Burden. Too Much Information (TMI): If a collector asks for “all communications since the account’s inception” (which could be 10 years ago), it is a massive burden for an individual to compile, assuming those documents can even be obtained. The Defendant could file an objection because the request is unduly burdensome, not to mention costly.

The Objection: “Defendant objects as unduly burdensome and disproportionate under (cite your state’s rule in Civil Law and Procedure).

It’s even common to object because of the costs involved in obtaining the requested documents. Similar to a subpoena for a bank, the bank usually charges a fee for those services.

Why the Plaintiff or Debt Collector Objects: Hiding “Trade Secrets” in Debt Collection Lawsuits

Debt buyers often object to discovery because they don’t want to reveal how little they paid for your debt or the “holes” in their own documentation.

Proprietary and Protected Information: If you ask a debt buyer for the “Purchase Agreement” showing what they paid for your account, they will scream “trade secrets.”

Plaintiff’s Objection: “Plaintiff objects to the extent this request seeks sensitive commercial information and trade secrets regarding the valuation of bulk-purchased accounts.”

“Equally Available” Documents: If you seek a copy of the original cardholder agreement, the Plaintiff is likely to object, arguing “the Plaintiff objects as the documents sought are equally available to the Defendant, who was a party to the original contract.”

Knowing the amount the debt was purchased for would likely result in a minimal offer to settle the debt.

Summarized Reasons for Objections to Discovery

Common  Discovery Request	Who Objects?	Primary Reason
Asset Lists/Bank Records	Defendant	Privacy/Relevance: Financial status doesn’t prove liability.
Purchase Price of Debt	Plaintiff	Trade Secrets: They don’t want you to know they bought your $10k debt for $200 as that could affect settlement offers.
“Any and All” Records	Both	Overbroad: Fails the “reasonable particularity” test. Cost factors have to be considered.

The Professor’s Conclusion on Objections as a Settlement Tool

Filing objections is common in motion practice. If an agreement can’t be reached between both parties, then the matter should be scheduled for a hearing on the court’s motion calendar.  Judges usually have a separate page accessible through the clerk’s office that details how to schedule a motion, as judges have their own specific rules and preferences.

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