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Credit Card Lawsuit: Knowing The Two Kinds Of Plaintiff
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Credit Card Lawsuit: Knowing The Two Kinds Of Plaintiff

As far as credit card lawsuit goes, the plaintiff could turn out to be your card company, a third party collection agency or a junk debt buyer. Unfortunately, not a lot of delinquent debtors do not focus on who sued them to begin with because they are too busy panicking about the idea of going to court to face off with a creditor. The fact is, knowing who is suing you will prove useful in your own defense once the credit card lawsuit reaches court.

Statistic shows that majority of original card companies do not really opt to press charges against their customers. Instead, they sell most of these accounts to a junk debt buyers who will do all the dirty work like calling the delinquent debtor or dropping by their house to collect the debt in question. These collection agents tend to assume that many debtors will simply ignore the summons and they will win the credit card lawsuit by default, which is mostly the case.

These junk debt buyers will check all accounts they purchased using a special type of software to determine who make great candidates for collection. Next, once they have listed down all delinquent debtors that make great candidates for collection, they will send out multiple summons and hope that none of these debtors will respond to the summons, which may hinder their chances of winning the credit card lawsuit by default judgment.

If, say, a debtor responds to the summons and starts demanding for the original documents that would validate the ownership of said debt, it shows junk debt buyers that the debtor knows how to play the game and this could potentially increase the risk of losing the lawsuit so many will drop the charges and move on to less informed debtors. The original card companies will also find it hard to prove their case since most of their departments are managed by computers and they tend to make poor records of any operations. If there is no employees with first-hand knowledge of the debtors and they cannot swear under oath that they know about a specific account personally, there is very little chance that the original creditor could win the case.

In addition, hiring a lawyer to handle the case will prove to be more expensive than simply selling the account to other collection agencies or settling the debt out of court. Also, if the original creditor does win the case, they will have to pay 30% of the money collected to the collection attorney. So, rather than getting so little, original creditors will just cut their losses and sell the accounts rather than seeing the credit card lawsuit all the way to the court.

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. The reason for this is that the original creditors will not give anyone access to any documents relating to charged off accounts.


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