The number of people who are faced with credit card lawsuit is in all time high simply because it's big business as far as collection agencies and junk debt buyers are concerned. These days, buying and selling charged off account is a billion dollar industry where junk debt buyers and collection agencies pay pennies on the dollar. Imagine how much they stand to profit from a single account.
Once a debtor defaults on payments, the original creditor will try to collect the debt several times, which may come in a form of a letter or two or a couple of phone calls. Most creditors will not attempt to go all out in terms of collecting the debt because this is just a small part of their business. So, if the debt is not paid they will sell the account over to a collection agency or a junk debt buyer for pennies on the dollar.
Once a collection agency obtained the account, agents will hound the delinquent debtors vigorously but this will only be for a short period of time. If they can't collect debt, they will re-sell the account for even fewer pennies on the dollar. This time, the new account owner will apply illegal debt collection practices, which include harassment via phone calls to you, your neighbors, your family and even your employer as well as threatening letters. From here, the debt collector could either re-sell the account or file a credit card lawsuit.
An account, which has been resold multiple times, has its own advantages. Since only limited information about the account is being sold and not the entire account, that leaves very little basis of the credit card lawsuit. Debt collectors cannot approach the court with just your name, address, account number, and old credit card statements. They will need hard evidence and most of the time, they do not have access to these evidences.
Therefore, a credit card lawsuit will be futile. Junk debt buyers and collection agencies are better off striking a deal with a delinquent debtor rather than pursue the case all the way to court.
If there's any silver lining to dealing with credit card lawsuit , it's that it's very easy to defend yourself, you won't even need a lawyer most of the time. The fact is, many collection agents are hoping they get no response out of the summons they send out and they send out a lot in one go.
They expect an easy victory through a default judgment and get the money they were after. As long as you know how to defend yourself against a credit card lawsuit , there is no way for your collectors to win.
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