Rausch Sturm LLP is a national debt collection law firm that represents banks, credit card companies, auto lenders, and debt buyers in collection lawsuits across the country, including California. The firm has been the subject of multiple FDCPA class actions — including a 2021 California lawsuit alleging it threatened suit through an attorney not licensed in the state. If you have been served with a lawsuit from Rausch Sturm, you have 30 days to file a written response. Ignoring the lawsuit will result in a default judgment, after which Rausch Sturm can garnish your wages, levy your bank accounts, and place liens on your property.
Who Is Rausch Sturm LLP?
Rausch Sturm LLP is a debt collection law firm headquartered in Brookfield, Wisconsin, with offices across the United States including California. The firm has operated under several names over the years — most notably Rausch, Sturm, Israel, Enerson & Hornik, LLC (RSIEH) — and has been in the debt collection business for over 45 years.
Unlike debt buyers, Rausch Sturm generally does not purchase debt portfolios. It acts as outside collection counsel for its clients, which include banks, credit card issuers, auto lenders, credit unions, and in some cases debt buyers. When a creditor decides to pursue litigation, it refers the account to Rausch Sturm to file suit on its behalf.
Rausch Sturm holds a California debt collection license (No. 10685-99) and is required to use California-licensed attorneys when filing lawsuits in this state — a requirement that has been the subject of litigation, as discussed below.
Who Does Rausch Sturm Represent?
Rausch Sturm represents a broad range of creditors, including major banks, credit card issuers, auto lenders, student loan servicers, utility providers, and telecommunications companies. Because the firm works for both original creditors and debt buyers, the nature of the evidence it can produce in court varies depending on the client. When Rausch Sturm represents an original creditor, it typically has access to complete account documentation. When it represents a debt buyer, the chain-of-title and documentation issues that affect all debt buyer litigation apply.
If you are served with a Rausch Sturm lawsuit, the complaint will identify the plaintiff — that is the entity you need to research. Rausch Sturm is counsel, not the creditor.
Court History and FDCPA Violations
Rausch Sturm and its predecessor entity have accumulated a significant record of federal consumer protection litigation.
Debt validation failure (Wisconsin federal court): A federal court found that Rausch Sturm violated FDCPA § 1692g(b) by failing to provide debt validation before filing suit in small claims court after the consumer submitted a written dispute. The court rejected the firm’s “bona fide error” defense and upheld the consumer’s FDCPA claim.
Class action — misleading cure letters (W.D. Wis., 2018): A proposed class action alleged that Rausch Sturm and Jefferson Capital Systems sent collection letters containing a “right to cure default” notice that was misleading — stating a payment would cure the default when it would not have done so. The lawsuit also alleged the letters created the impression that a licensed attorney had reviewed the account when none had. The complaint alleged violations of FDCPA §§ 1692e and 1692f.
California class action — unlicensed attorney (2021): A class action filed in California alleged that Rausch Sturm sent collection letters and threatened to file suit in California when the attorney who signed the letter was not licensed to practice law in California. The plaintiff alleged this constituted a false and misleading representation in violation of the FDCPA because the firm had no legal right to sue in California through that attorney.
The CFPB complaint database contains numerous complaints against Rausch Sturm, including allegations of attempting to collect debts not owed, failure to provide validation, and improper contact. You can search current complaints at the CFPB complaint database.
Can Rausch Sturm Sue You in California?
Yes — Rausch Sturm is licensed to collect in California and files collection lawsuits in California Superior Court. Whether the lawsuit is viable in your case depends on the following.
Statute of Limitations
Under California Code of Civil Procedure § 337, the statute of limitations on a written contract — including credit card agreements — is four years from the date of default. If the debt is outside this window, you can raise the expired statute of limitations as a complete affirmative defense. Filing a lawsuit on a time-barred debt can itself be an FDCPA violation. Do not make any payment on a potentially time-barred debt without first understanding that even a partial payment can restart the clock.
Documentation and Standing
Whether Rausch Sturm is suing on behalf of an original creditor or a debt buyer affects what documentation it must produce. If the plaintiff is a debt buyer, California Civil Code § 1788.52 requires production of the original account agreement, complete account statements, and a chain of title establishing ownership. Even when Rausch Sturm represents an original creditor, it must authenticate its evidence at trial — and if no witness appears to testify in person, that evidence may be excludable. Filing a response forces Rausch Sturm to prove its case rather than collect on a default.
California Licensing
Any attorney filing a lawsuit in California on Rausch Sturm’s behalf must be licensed by the State Bar of California. The 2021 class action described above involved allegations that this requirement was not met. If the attorney who signed the demand letter or filed the complaint is not California-licensed, that may create an FDCPA claim independent of the underlying debt dispute.
If You Are Sued
Do not ignore a lawsuit from Rausch Sturm LLP. If you fail to file a written response within 30 days of service, the court will enter a default judgment. Once Rausch Sturm has a judgment, it can garnish your wages, levy your bank accounts, and place liens on your property with minimal additional court involvement.
Filing a response changes the litigation calculus entirely. It requires Rausch Sturm to produce documentation, opens the door to settlement on better terms, and prevents the automatic default that the firm counts on in the majority of its cases.
Learn how to respond to a debt collection lawsuit in California →
Is Bankruptcy an Option?
If you are facing a Rausch Sturm lawsuit — or dealing with a judgment they have already obtained — bankruptcy may be worth considering depending on your overall financial situation. Filing for bankruptcy triggers an automatic stay that immediately stops all collection activity, including active lawsuits, wage garnishment, and bank levies. Most unsecured consumer debt that Rausch Sturm collects can be discharged in a Chapter 7 bankruptcy.
Bankruptcy is not the right path for everyone. The decision depends on your income, assets, and the full scope of your debts. Consulting a bankruptcy attorney before a judgment is entered preserves the most options.
Settling with Rausch Sturm LLP
Settlement is generally possible with Rausch Sturm at any stage of the litigation process. The firm represents both original creditors and debt buyers, so its flexibility on settlement terms depends on the client’s authorization. Debt buyers typically have more pricing flexibility than original creditors because they acquired the account at a discount. Know who the plaintiff is before making any offer.
Filing a response first gives you leverage. Attempting to settle before any litigation action — and before you have identified your defenses — puts you in the weakest negotiating position. All settlement agreements must be in writing, must state the payment constitutes full satisfaction of the debt, and must address any credit bureau reporting obligations. Never pay on a potentially time-barred debt without understanding the statute of limitations consequences.
Your Rights Under the FDCPA and Rosenthal Act
Rausch Sturm LLP is a debt collector under the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq., and the Rosenthal Fair Debt Collection Practices Act, California Civil Code § 1788 et seq. Under both statutes, Rausch Sturm is prohibited from:
- Calling before 8 a.m. or after 9 p.m. your local time
- Using abusive, threatening, or harassing language
- Making false or misleading representations about the debt, the creditor, or its legal right to sue — a documented area of FDCPA exposure for this firm
- Threatening legal action through an attorney not licensed in California
- Continuing collection activity after receiving a written cease communication request
- Filing suit on a time-barred debt
- Failing to provide debt validation after a timely written request
These protections do not enforce themselves. You must assert them — in writing, by certified mail. FDCPA violations may entitle you to up to $1,000 in statutory damages per violation, plus attorney fees and costs. Because Rausch Sturm attorneys are licensed by the State Bar of California, conduct that violates the FDCPA may also constitute an ethics violation reportable to the State Bar.
Debt Validation
If you receive a collection letter from Rausch Sturm LLP, you have the right under FDCPA § 1692g to request written verification of the debt within 30 days of the first written communication. Once you submit a written validation request, Rausch Sturm must cease collection activity — including filing suit — until it provides verification. A court found that Rausch Sturm violated this requirement when it filed a small claims action after receiving a consumer’s dispute letter without first providing validation. Send your request by certified mail, return receipt requested.
Your validation request should ask for: the name and address of the original creditor, the amount of the debt and a complete accounting of how it was calculated, the account number, and if the plaintiff is a debt buyer, the complete chain of title showing ownership. Keep all responses.
Frequently Asked Questions
Is Rausch Sturm LLP a legitimate law firm?
Yes. Rausch Sturm LLP is a legitimate debt collection law firm with over 45 years of operation, headquartered in Brookfield, Wisconsin, with offices across the country including California. It holds a California debt collection license and is required to use California-licensed attorneys when filing suit here.
Does Rausch Sturm buy debt?
Generally no — Rausch Sturm acts as outside collection counsel for its clients. However, the firm does represent debt buyers as well as original creditors, so the plaintiff named in your lawsuit may be a debt buyer. The complaint will identify who owns the debt.
Why is Rausch Sturm suing me?
Rausch Sturm files suit on behalf of the creditor or debt buyer that owns your account. The creditor referred the account to Rausch Sturm for litigation because earlier collection efforts were unsuccessful.
How long do I have to respond to a Rausch Sturm lawsuit in California?
You have 30 days from the date of service to file a written response with the court. If you do not respond, the court will enter a default judgment against you.
Can Rausch Sturm garnish my wages?
Only after obtaining a court judgment. Rausch Sturm cannot garnish wages or levy bank accounts without first filing a lawsuit, winning a judgment, and following California’s post-judgment enforcement procedures.
Has Rausch Sturm violated the FDCPA?
Yes. Rausch Sturm and its predecessor RSIEH have been the subject of multiple FDCPA actions, including a Wisconsin federal court finding of a debt validation violation, a 2018 class action over misleading cure letters, and a 2021 California class action alleging the firm threatened to sue through an attorney not licensed in California.
What happens if I ignore a Rausch Sturm lawsuit?
The court will enter a default judgment against you. Rausch Sturm can then pursue wage garnishment, bank levies, and property liens without any further participation from you.
Can bankruptcy stop Rausch Sturm?
Yes. Filing for bankruptcy triggers an automatic stay that immediately halts all collection activity, including lawsuits, wage garnishment, and bank levies. Most unsecured debt that Rausch Sturm collects can be discharged in Chapter 7 bankruptcy. Consult a bankruptcy attorney to determine whether this option is right for your situation.
Legal References
- Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq.
- Rosenthal Fair Debt Collection Practices Act, California Civil Code § 1788 et seq.
- California Code of Civil Procedure § 337 (statute of limitations, written contracts)
- California Civil Code § 1788.52 (debt buyer documentation requirements)
- FDCPA § 1692g(b) (debt validation requirement — cease collection until validation provided)
- State Bar of California attorney search: calbar.ca.gov
- CFPB complaint database: consumerfinance.gov