Debt Collection Laws: The Hearsay Evidence Rule

Junk debt buyers or collection bureaus will have a hard time pinning a certain debt to a delinquent credit card account owner simply because they do not have access to documents that are vital to the case, like the original signed agreement.

Instead, they rely on a debtor's ignorance of debt collection laws and get a default judgment that allows them to legally access a debtor's bank employment and personal information. Once the court rules a default judgment against you, your creditor may put a lien on your assets, access and empty your bank savings and garnish your wages. This is the reason why familiarizing yourself with your local debt collection laws is important.

If a creditor determines that they cannot easily get a default judgment against you, they will try to get someone to testify against you under oath. Will this pose a real threat to your case?

Not really. The hearsay evidence rule will apply and no evidence of statements, oral or written, can be made by an out of court witness and offered to provide the truth of the matter in dispute.

The fact is, junk debt buyers, collection agencies, etc. have thousands of respective accounts. They don't even know how much to sue you for unless someone tells them. That someone is the original creditor. Unfortunately, that is as much information as they can get from the original creditor so it is up to them to prove that indeed, you own the debt in dispute.

Now, if you are familiar with debt collection laws in your state, you know that the debt buyer's damages are essential elements for every claim. The damages refer to the amount of the debt they allegedly purchased and failed to collect even if they only paid pennies on the dollar. To prove their case, they will present old credit card statements that indicate how much money you owe.

This is where the hearsay evidence rule applies. One cannot present billing statement in court because it is regarded as documents made by an out of court witness that offered to prove the truth of the matter in dispute. Therefore, monthly credit card statements presented in court are nothing more than pure hearsay and inadmissible evidence.

With no damages, there's no case and if there's no case you win the lawsuit. In order to effectively defend yourself against credit card lawsuit, you need to learn more about debt collection laws in your local area. Click here to learn how to fight against all debt claims and win your case without hiring an attorney!