Why they Won’t Win: Credit Card Lawsuit From Junk Debt Buyers

Why they Won’t Win: Credit Card Lawsuit From Junk Debt Buyers

If a junk debt buyer or collection sues you agency for allegedly owning several thousands of dollars in credit card debt, there’s a good chance that the case won’t make it to court. Why? Because junk debt buyers or collection agencies have to prove the debt is yours and without proper documentations that they don’t have access to, they can’t.

Collection agencies or junk debt buyers are third party companies that purchased charged off accounts from credit card companies. They don’t profit from these account until the debtors pay the debt. So if you received a summons, you need to check local court rules and see how much time you have until you can file an Answer to the credit card lawsuit. If you did not respond to the summons and a default judgment is ruled against you by the court, then the debt collectors can legally access your bank account and help themselves until the debt is paid.

If you dispute the credit card lawsuit or you demand that the creditor send documentations to prove you own the debt in question, they can either pursue the case or move on to less informed debtors, in many case, creditors choose the latter than the former. Original credit card companies sell charged off accounts as a way to cut their losses on move on. Going after these cases are incredibly expensive with very little payoff so instead of making delinquent debtors pay, they let third-party companies do the collection efforts as they sell the accounts pennies on the dollar.

If you are sued by a junk debt buyer rather than your original creditor, then you are in luck because junk debt buyers almost always can’t prove ownerships of charged off credit card accounts. The court requires the collection attorney to present an affidavit attesting the accuracy of a certain document with a sworn statement of someone with personal knowledge of that account.

They do not have employees that have personal knowledge of individual accounts that they can take to court or evidence that could effectively pin the account to you. They rely on debtors’ guilt or ignorance to get the money and if you show the slightest chance of facing the credit card lawsuit head on, they’ll drop the case and move on.

Here’s more, because each collection firm only have limited number of attorneys working for them, they are not equipped to pursue the credit card lawsuit at all and if they pursue every case, they’d be out of business for sure! It might be scary to know that you are about to face a credit card lawsuit but it’s much more scary to think what will happen if you ignore the summons. So don’t. Click here to order the complete Answering a Summons package.

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