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==== ==== This article talks about how to eliminate credit card debt. http://www.creditcarddebtlitigation.com/credit-card-lawsuit-defense/ ==== ====

In the current credit crisis, banks find more and more of their customers unable to pay. Recently, more and more banks and credit issuers are selling delinquent accounts to third-party debt purchasers. As a result of these sales, the number of credit-card lawsuits has increased substantially. To give you an idea of how much debt credit issuers are selling these days: In 1991, $2 billion of consumer debt was sold to third-party purchasers; in 2006, it was $110 billion. These parties purchase the debt for less than it is worth because the credit company wants to get some of the money back. Then, the purchaser attempts to collect what it can, using the resources it has. Usually, a lawsuit is the last effort used to collect a debt. However, while the number of lawsuits may have increased, the chances of a consumer defending and actually winning these cases are pretty good. If a debt purchaser files a credit lawsuit, it's very likely it does not actually possess the original contract or the even the authority to file the lawsuit in the first place. Usually, these third-party purchasers buy a large portfolio of debt contracts and, more often than not, do not receive the information needed to launch a successful suit against a consumer. However, these consumer advantages won't be of any use if the consumer does not respond to the notice that a lawsuit has been filed or show up for the court date. Too frequently, consumers are intimidated or simply disregard the notice that a suit has been filed. When this is the case, the plaintiff, or collector, will win the suit by default. This means that the plaintiff does not have to prove that you owe the money, how much you owe or even show up to court at all. This makes the cost of the lawsuit practically nothing for the company. These companies tend to rely on the inaction of the consumer because it makes launching these suits much less expensive. If the company wins by default, what can they do? They can put liens on your nonexempt property or garnish your bank accounts to settle the debt (varies by state). So, responding to the suit is very important. If this is not done, the consumer effectively forfeits his/her right to a defense. There are several defenses that can be used in credit-card lawsuits. A consumer faced with one should contact a collection attorney to decide which one(s) best apply. When the suit is brought by a third-party purchaser, the most common defenses are the statute of limitations and mistaken identity. No one can sue for debt after 4 years (varies by state) from the default date, not the last payment or other date the purchaser may try to use. Since these


purchasers have very incomplete information, mistaken identity is not uncommon. In short, open all the mail so you don't miss any suit notices. Take the notice seriously by getting an attorney and responding to it. Given the possible consequences, you can't afford not to act.

Emily Jenkins is a senior, Business Administration major at the University of North Carolina in Chapel Hill. Originally from Phoenix, Arizona, she currently resides in Carrboro, North Carolina. After graduation, she intends to complete a year-long internship program with non-profit organizations in D.C. She plans to someday attend law school. Emily Jenkins currently provides educational content for nonprofit organizations. Many of her articles are published by Vision Credit Education, Inc as a public service.

Article Source: http://EzineArticles.com/?expert=Emily_Jenkins

==== ==== This article talks about how to eliminate credit card debt. http://www.creditcarddebtlitigation.com/credit-card-lawsuit-defense/ ==== ====


Increase in Credit Card Lawsuits  

To give you an idea of how much debt credit issuers are selling these days: In 1991, $2 billion of consumer debt was sold to third-party pur...

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