Facts To Consider When Dealing With Credit Card Lawsuit

Thousands of people across the country are facing creditcard lawsuit for unpaid debts that this actually turned into a billion dollar business for junk debt buyers, who make a living by purchasing old, credit card accounts for pennies on the dollar. In a somewhat twisted way, opportunist are actually benefiting from hapless debtors who are struggling to make ends meet as it is. Junk debt buyers have a reputation for applying questionable collection practices just to get what they want.

The good news is, delinquent debtors don’t have to put up with this kind of scheme at all. Federal and state laws are in place to protect consumer rights from predatory debt collection companies who harass people with credit card lawsuit via threatening phone calls and letters. If you are looking at a possible credit card lawsuit, there are certain factors you have to consider first prior to taking action.

One, apart from answering the summons, you need to request a debt validation letter to the junk debt buyer. This will not only help buy you time to cook up a plan, the other party will also have a hard time pinning the debt under your name. The fact is, junk debt buyers do not have access to original documents that could effectively identify the owner of the debt. Instead, they rely on old credit card statements and your personal information, which do not hold much weight in court at all.

Second, check your state’s policy about the statute of limitations. The statute of limitations refers to the period by which the creditor or the junk debt buyer can file a lawsuit against the debtor. The days are numbered from the late date that the debtor made a payment. Because statute of limitations vary greatly from state to state, you will need to check your own state’s statute for more information. If the account is out of statute, your debtor cannot pursue your case in court.

If you do not have any means to repay the credit card debt at all, you can opt to file a bankruptcy claim. This is best for those who are being hounded by several creditors and have no way to hire a defense attorney. That said, filing for bankruptcy has its own disadvantages including causing a negative impact on your credit rating so make sure you exhaust all efforts looking for other ways to deal with the credit card lawsuit before you consider this option.