Showing posts with label lawsuit. Show all posts
Showing posts with label lawsuit. Show all posts
Tuesday, November 5, 2013
Beware a Discover Card Lawsuit
Even a small amount of experience dealing with collection agencies teaches most people that defending a lawsuit from a collection agency isnt exactly rocket science and usually goes something like this:
1. You recieve a summons from the collector.
2. You respond to the summons and show up in court. You demand proof that you owe the debt.
3. The collection agency requests time to come up with proof.
4. The collection agency cannot find proof. The judge dismisses the lawsuit. Game over.
Unfortunately, not every debtor has such a pleasant experience in court. Depending on the original creditor, you may have a much tougher time using the law to your advantage in a debt collection lawsuit – especially if that creditor happens to be Discover.
Why Collection Agencies Lose Lawsuits
As I mentioned yesterday, collection agencies that file a lawsuit against you do so in the hope that you wont respond and the company will subsequently win a default judgment against you. Collection agencies rarely have complete documentation proving that you owe the debt they claim you owe. This is because creditors sell debts in batches. Compiling and including extensive data on each delinquent account requires more time and effort than the original creditor wants to provide. After all, its already taken its tax break on the debt.
This lack of supporting documentation usually doesnt hurt the collection agency very much. It either successfully scares the debtor into paying through threats, annoys the debtor into paying through persistent phone calls or sues the debtor. The debt collector doesnt have to bother with proof if the debtor doesnt show up in court and ask for it. The court assumes the collection agencys assessment of the situation is the correct one and BAM! default judgment.
Discover Card Collection Process
The Discover card company does not sell its unpaid accounts to collection agencies. Rather, the company maintains ownership of the account and hires collection agencies to collect the debts on commission. Discover also doesnt drop packaged debts on collectors like a box of unwanted kittens. Because Discover has a continued interest in the collection of the account, it provides its collectors with full and complete documentation for each account.
The thorough documentation procedure that Discover uses makes it almost impossible for consumers to successfully defend themselves in court. If your debt was on old Discover card, you can pretty much bank on the fact that the collection agency will show up to court with your original signed contract in tow.
Debt Validation and Old Discover Debts
Most collection agencies, when faced with a debt validation request from a consumer, will send the consumer an account statement and call it legitimate validation – if they respond at all. If your debt was from Discover, however, the collection agency likely has everything it needs to provide you with complete validation.
Although the Fair Debt Collection Practices Act does not specify what constitutes validation, sending you copies of the extensive paperwork the company has that supports your liability for the debt benefits the collector considerably. If you know the collection agency has the documentation necessary to prove its case in court, youre more likely to make payment arrangements rather than taking your chances with the judge – saving the company both time and money.
Stop Discovers Collection Agencies With FDCPA Violations
I typically dont take on Discover. That isnt because they cant be beaten – they can – its because my job involves scaring off the collection agency before the case goes to court. If youre getting a summons from a collection agency that works for Discover, its a pretty fair bet that youre going to court.
I made one exception back in 2001 when the person facing Discover was my grandmother. My grandfather had recently passed away. When he died, he still owed a balance on his Discover card. The Discover account was his and his alone. For some reason Discover thought it would be a good idea to try and falsely convince my grandmother that she was liable for that debt.
Getting rid of them at that point was realtively simple since they misrepresented the debt and, in doing so, clearly violated the FDCPA. Suing my grandmother would only have resulted in a counter-suit, so they swallowed the debt and disappeared.
And here is my point: if a collection agency that works for Discover is after you, your best bet is to nail the company on an FDCPA violation. If the collection agency has something to lose, they very well might leave you alone – especially if you owe less than $1000.
Related Posts:
How to Respond to a Bill Collectors Lawsuit
Make Yourself Judgment Proof
The Debt Collection Lawsuit Threat
Funds Exempt From Bank Account Garnishment
ReadThe RestEntry..
1. You recieve a summons from the collector.
2. You respond to the summons and show up in court. You demand proof that you owe the debt.
3. The collection agency requests time to come up with proof.
4. The collection agency cannot find proof. The judge dismisses the lawsuit. Game over.
Unfortunately, not every debtor has such a pleasant experience in court. Depending on the original creditor, you may have a much tougher time using the law to your advantage in a debt collection lawsuit – especially if that creditor happens to be Discover.
Why Collection Agencies Lose Lawsuits
As I mentioned yesterday, collection agencies that file a lawsuit against you do so in the hope that you wont respond and the company will subsequently win a default judgment against you. Collection agencies rarely have complete documentation proving that you owe the debt they claim you owe. This is because creditors sell debts in batches. Compiling and including extensive data on each delinquent account requires more time and effort than the original creditor wants to provide. After all, its already taken its tax break on the debt.
This lack of supporting documentation usually doesnt hurt the collection agency very much. It either successfully scares the debtor into paying through threats, annoys the debtor into paying through persistent phone calls or sues the debtor. The debt collector doesnt have to bother with proof if the debtor doesnt show up in court and ask for it. The court assumes the collection agencys assessment of the situation is the correct one and BAM! default judgment.
Discover Card Collection Process
The thorough documentation procedure that Discover uses makes it almost impossible for consumers to successfully defend themselves in court. If your debt was on old Discover card, you can pretty much bank on the fact that the collection agency will show up to court with your original signed contract in tow.
Debt Validation and Old Discover Debts
Most collection agencies, when faced with a debt validation request from a consumer, will send the consumer an account statement and call it legitimate validation – if they respond at all. If your debt was from Discover, however, the collection agency likely has everything it needs to provide you with complete validation.
Although the Fair Debt Collection Practices Act does not specify what constitutes validation, sending you copies of the extensive paperwork the company has that supports your liability for the debt benefits the collector considerably. If you know the collection agency has the documentation necessary to prove its case in court, youre more likely to make payment arrangements rather than taking your chances with the judge – saving the company both time and money.
Stop Discovers Collection Agencies With FDCPA Violations
I typically dont take on Discover. That isnt because they cant be beaten – they can – its because my job involves scaring off the collection agency before the case goes to court. If youre getting a summons from a collection agency that works for Discover, its a pretty fair bet that youre going to court.
I made one exception back in 2001 when the person facing Discover was my grandmother. My grandfather had recently passed away. When he died, he still owed a balance on his Discover card. The Discover account was his and his alone. For some reason Discover thought it would be a good idea to try and falsely convince my grandmother that she was liable for that debt.
Getting rid of them at that point was realtively simple since they misrepresented the debt and, in doing so, clearly violated the FDCPA. Suing my grandmother would only have resulted in a counter-suit, so they swallowed the debt and disappeared.
And here is my point: if a collection agency that works for Discover is after you, your best bet is to nail the company on an FDCPA violation. If the collection agency has something to lose, they very well might leave you alone – especially if you owe less than $1000.
Related Posts:
How to Respond to a Bill Collectors Lawsuit
Make Yourself Judgment Proof
The Debt Collection Lawsuit Threat
Funds Exempt From Bank Account Garnishment
Tuesday, May 28, 2013
How to Respond to a Bill Collectors Lawsuit
Summons and Complaint: Notice of the Lawsuit
When a bill collector files a lawsuit against you, the company is legally required to send you a summons and complaint package. The summons serves as official notice of the pending case while the complaint lists the collection agencys allegations against you. Basically, the complaint says "Were suing because you didnt pay your debt. Heres what you owe."
If you dont file an Answer with with court within the time frame specified in the paperwork, youre classified as a no-show. Fail to respond or show up in court and guess what? The bill collector wins the lawsuit by default. It can then pursue your assets through wage garnishment, bank levies, real estate liens and even, in some states, sending a sheriff to seize your personal property, such as jewelry and electronics.
ReadThe RestEntry..
When a bill collector files a lawsuit against you, the company is legally required to send you a summons and complaint package. The summons serves as official notice of the pending case while the complaint lists the collection agencys allegations against you. Basically, the complaint says "Were suing because you didnt pay your debt. Heres what you owe."
If you dont file an Answer with with court within the time frame specified in the paperwork, youre classified as a no-show. Fail to respond or show up in court and guess what? The bill collector wins the lawsuit by default. It can then pursue your assets through wage garnishment, bank levies, real estate liens and even, in some states, sending a sheriff to seize your personal property, such as jewelry and electronics.
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| Guess who? |
Fill Out the Complaint Attached to the Summons
Before I delve too deeply into this, I have to state that every district in every state does things their own way. The basic process is the same across the board, but dont expect your summons and complaint forms to look like summons and complaint all over the country. It isnt going to happen.
The typical complaint lists each charge the bill collector made against you with the court. Next to these charges will be one of two things or both:
1. Multiple choice options for selecting whether you agree or disagree with the debt collectors claim.
2. Blank spaces allowing you to explain whether you agree or disagree and why.
If you agree with all of the collection agencys claims, returning your Answer to the court is pretty pointless. Youre getting a court judgment levied against you either way at that point. If you dont agree or if you simply want to avoid the negative consequences of a court judgment from a bill collector, you must select "disagree" when given the option.
It is possible to answer "agree" to a certain claim from the collector yet disagree with another. Always be careful when agreeing to a collection agencys claims in the summons paperwork. Generally, if you disagree with any aspect of the debt collectors allegations its best to simply mark that you disagree with the claim. You can always explain your position at the lawsuit hearing.
State Your Defense When Answering a Collection Summons
While merely taking the time to fill out and file an Answer with the court lowers your risk of the lawsuit going any further (more on that in a minute), it doesnt provide you with airtight protection from a collection judgment. You must have a defense to lean on in court – provided the bill collectors case ever gets that far.
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| Over time, the SOL expires |
Some defenses are better than others. Take the statute of limitations defense for example. In this defense, the debtor claims that whether or not he owes the debt is irrelevant because the states statute of limitations for a debt collection lawsuit has already passed. Thus, any lawsuit the collection agency files based on that particular debt is illegal.
Regardless of the defense you opt for, remember to include your defense with your summons. If you do not have room to write in additional information about your defense, type out a letter noting the defense you plan to use on a separate sheet of paper and attach it to the debt collectors summons and complaint.
Answering a Summons Decreases Lawsuit Risk
When you answer a summons, it decreases the chances that youll end up riddled with anxiety, trying to defend yourself in court against a bill collectors much more experienced attorney. The collection agencys goal, however, isnt to fight you and win – it doesnt want to fight with you at all. The company files its suit hoping that you will ignore the summons and complaint and the court will award a default judgment in the debt collectors favor.
Because most debt collectors accounts dont complain complete information, its exceedingly hard for a collection agency to prove in court that you legitimately owe a debt. This inability to prove your responsibility for payment often makes it difficult for the bill collector to prove its case in court. This is especially true if youve taken the time to educate yourself about what to expect in court and how to walk away a winner with your finances still intact. The New York NEDAP has information regarding what rights collection agencies and consumers have during a lawsuit and how to defend yourself. I highly recommend checking it out if you receive a summons and complaint from a debt collector.
NEDAP – Defending Creditor Lawsuits
While some collection agencies will proceed with the lawsuit even after you file an Answer, few will do so if you state a solid defense you plan to use at the hearing. When you respond to a bill collectors lawsuit, the company knows that winning the case just became a good deal harder and will often withdraw the lawsuit in an effort to save time and money.
Related Posts:
Make Yourself Judgment Proof
The Debt Collection Lawsuit Threat
How a Collection Agency Debt Can Turn Into a Default Judgment
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