Credit Card Collection Lawsuits – The Basics

In the current economic situation, more and more people are getting caught up in the trap of credit card debt. Credit card companies are willing to go to great lengths to collect, and will use aggressive measures to get their payments. Although the thought of a credit card collection lawsuit may be overwhelming, with a little knowledge, and the advice of a good consumer attorney, you can come out of the suit intact.

Like all lawsuits, you have a strict answer deadline. If you don’t answer a collection lawsuit within the required time, you risk a default judgment in favor of the credit card company. By consulting a consumer lawyer as quickly as possible after you receive notice of the lawsuit, you can avoid missing the answer deadline, and also have more time to plan your defense and work with the collector.

Because the value of the debt decreases as the amount of time increases, many insurers of credit sell their bad debts to third party collectors. These debt buyers buy the debt for pennies on the dollar and try to make a profit by collecting the full amount of the debt. This can sometimes work in your favor, as debt buyers may not have the paperwork required for a successful lawsuit, including the credit card agreement, monthly billing statements, and the terms and conditions of your credit card. Without these documents, an experienced consumer attorney can usually negotiate with the collector to get the case settled out of court, or even get the lawsuit dismissed entirely.

Although these types of lawsuits are unpleasant, by informing yourself ahead of time, and consulting a seasoned consumer attorney as soon as possible, you can often negotiate a very favorable settlement or maybe even get the case dismissed.

This entry was posted in Uncategorized and tagged , . Bookmark the permalink.