The following article recently appeared in the NY Times entitled Automated Debt Lawsuits Engulf Courts. It is an excellent article, and points out why it is currently fairly easy to win a case against a "debt collector in court. As the article points out, debt collectors are utilizing automated computer programs to file 10's of thousands of Creditor Lawsuits per year. The problem for them is that their is no verification of the debt mentioned in the suits. They are simply banking on you not showing up in court so they can obtain a default judgment.
For you, the debtor, this is a great advantage in helping you defend yourself. First, you must file an answer to the lawsuit. By requesting the proper debt validation information from the collection attorneys, you stand an excellent chance of having the case thrown out. How so? you ask. When the original collector sells the debts to the collection companies, they do not transmit any proof, showing that you actually used a credit card. Just your name, social, address, amount of debt and whether or not the account is still accruing interest. And that's what goes into the complaint against you. This is still America, where is the proof?
If you craft an answer requesting this documentation, you stand an excellent chance of winning your defense, if you have not admitted to the debt. The collection attorneys, will most likely, not be able to produce it. The Fair Debt Collection Practices Act says you are legally entitled to it.
Because the courts are becoming so clogged with these cases, the FTC has weighed in with an opinion, stating that they would like to see states make it mandatory for the collection attorneys to have to provide this information upfront, in the suit, before filing. Whether or not this actually ever happens, is anyone’s guess. But, for now, you the debtor has a tremendous advantage, if you are willing to do some homework.
If you would like to see what self help ebooks are available on these topics, please visit: Debt Relief Self Help Ebooks. or, if you would like a FREE Consultation with a debt counselor to learn about all your options, visit:FREE CREDIT COUNSELING.
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Written By:
Steven Ciantro
American Debt Enders
Member National Association of Certified Credit Counselors
hel@americandebtenders.com
877-766-2465
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