Debt collectors sometimes hope to discourage lawsuits against them for their illegal conduct by counter suing the consumer in federal court.  Not any more… Often, in an attempt to further punish and harass a consumer a debt collector, in response to a consumer filing a federal complaint for violations of the FDCPA, will attempt to file a cross-complaint for the alleged underlying debt. This results in a potential chilling effect on consumers asserting their rights under a federal statute. While there is no bright-line test in allowing these cross-claims to proceed, the Court has ruled in numerous cases that these types of cross-complaints should be dismissed and handled in State Court. See Martin v. Law Offices of John F. Edwards, et al., 2009 U.S. Dist. LEXIS 97629 (S.D. Cal. 2009) and Sparrow v. Mazda Am. Credit, 385 F. Supp. 2d 1063 (E.D. Cal. 2005).