Credit Card Lawsuit: Knowing The Two Kinds of Plaintiff

When it comes to a credit card lawsuit, the plaintiff could either be the original credit card company, a junk debt buyer or a collection agency. Many debtors tend to panic when they are handed with a summons from unpaid CC balance because going head to head with a creditor in court is really a challenging situation to be in. However, the key to beating any type of plaintiffs is to craft the correct Answer to the summons.

Statistically, most original creditors do not sue their consumers and instead, sell old, charged off accounts to junk debt buyers who target seemingly weak debtors who looked like they will just ignore the summons. Junk debt buyers rely on this and expect an easy win by being awarded a default judgment.

Junk debt buyers screen possible candidates to serve summons to using special software and because they are well-connected with local collection attorneys, they will send multiple summons to selected debtors, hoping none will respond to the summons therefore winning the case via default judgment.

On the other hand, if a debtor responds to the credit card lawsuit and demands original documents to validate the debt, most junk debt buyers will not pursue the case and instead, will move on to less informed individuals.

Original creditors will have an equally hard time going after a debtor because all operations are computerized and most of them do not keep paper records. With no employees with personal knowledge on individual debtor accounts to swear in an affidavit for a credit card lawsuit, proving the debt’s ownership is not as easy so there is a slim chance of getting a default judgment.

When they hire a collection attorney to handle the case, the more expensive the credit card lawsuit becomes. What’s more, collection attorneys are not paid unless they win the case. Original creditors who won the credit card lawsuit will have to pay 30% of the money collected to the collection attorney so original creditors would rather cut their losses and sell the accounts rather than seeing through until the end of the credit card lawsuit and getting so little from it.

If a junk debt buyer is the one suing you for the credit card debt and not the original creditor, then you are in luck because most junk debt buyers do not have access to relevant documents that could pin the debt under your name.

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