In the above video the Los Angeles Time reports the California attorney general has sued J.P. Morgan Chase for furnishing phony credit card documents in credit card debt lawsuits it filed in California, as well as using “sewer service” to notify consumers of a credit card debt lawsuit against them.
While credit card banks are suing more today, consumers who owe have a good chance of winning if they properly challenge their lawsuit. More than 93 percent of these credit card lawsuits go unchallenged, according to a New York Times article. That is because most consumers who owe assume they have no chance of winning, so they do not respond and suffer a default judgment. Some then file for bankruptcy.
The credit card banks are doing this because in recent years junk debt buyers (JDBs) took to blanketing consumers who had long overdue credit card debt with lawsuits. They knew that 90 percent or more would default by not answering, and that a quick default judgment was in the offing. If a consumer did file a good answer challenging the JDB’s documentation, or lack thereof, the JDB collection attorney would simple neglect or drop the suit. As reported in the Wall Street Journal, the country’s largest junk debt buyer and parent of Midland Credit Management, Encore Capital Group, had a business plan of not pursuing any credit card lawsuit filed on its behalf that was answered. This is all because JDBs could not and cannot properly document an individual credit card debt to court evidentiary standards, despite their bogus affidavit attempts.
Today the few consumers who do properly answer a credit card lawsuit filed against them can see the suit dismissed or abandoned. Surprisingly, credit card banks have the same problems documenting individual consumer credit card debts as the JDBs do. They too attempt to employ bogus, generalized affidavits that could apply to any credit card debt in a bank’s portfolio. The key to beating them is using an experienced, affordable consumer rights attorney.
Common sense tells us the more a consumer owes, or the more the collection attorney can divvy up, the harder the attorney will pursue the case. Conversely, credit card lawsuits with lesser amounts owed that are properly answered stand a good chance of being neglected by the collection attorney until they are out of date. But regardless of the amount and to win, the attorney can do no better than produce a bogus affidavit from the credit card bank. Once the original creditor’s debt claim goes through an unsuccessful lawsuit, there is an increased chance it will be sold to a junk debt buyer for pennies on the dollar. That JDB can again easily be defeated with a challenge to its documentation of the debt in question. My debt validation letter alerts collection attorneys for junk debt buyers to the demands for documents that will be made by a consumer should they make the mistake of paying the fee to file a lawsuit against that consumer.
So if you do owe and do get sued, or are afraid of credit card lawsuits, there is plenty of hope. Read my pages and posts, continue to educate yourself about your debt situation, and look for the offer for my materials.