Attorneys are expecting default judgments in Credit Card Debt Lawsuits

Attorneys are expecting default judgments in Credit Card Debt Lawsuits

Collection attorneys usually win lawsuits just because consumer debtor wouldn't answer to their summons. On the other hand, when a consumer actually answers these summons, it usually results in totally different output. Attorneys usually drop case instead of pursuing it any further.

Collection law firms don't have a large bench of attorneys. However, they do have may paralegals who process summons. They also process the default judgments that result from such efforts. These firms can't afford to go into trial for each case since that would take time and require more attorneys to work on credit card debit lawsuits. That's the reason a collection law firm usually sends out may summonses each day.

Credit card companies have complex account database, which means that documentation of debt will be tough than what it appears to be. Since there is no original signed contract in the database, collection attorneys rely only on scanned copy of credit card application. To add to the troubles, there are no employees who have the knowledge of these accounts so that they can attest account's accuracy.

What collection attorneys make from each credit card debt lawsuit depends on what they collect. Most of the times, these attorneys are paid 30% of total sum collected for the credit company. In addition to this flat rate payment, these attorneys also get paid reasonable fees. However, the debtor is to pay that fee since its part of their contract with the credit card company. Considering a lawsuit is filed in California, where the attorneys fees is limited to 25% of the amount sought, a $10,000 claim will mean that the attorney is getting $2500 for the entire case. Once converted to hourly charges, it would become 12.5 hours charged $200 per hour. This is just not enough time for litigating a case. Therefore, if debtor answers the summons, collection firm will drop the case instead of spending countless hours on it and only getting paid for 12.5 hours in the end.

In case of junk debt buyers, going back to the original creditor is rarely a practical option. It means that getting account documentation will be hard for attorneys. This is the reason that they flood debtors with as many summonses as many possible, thinking that the debtor will not answer these. However, when a debtor actually answers and asks for proper documentation, collection law firm will drop the case. The same point was highlighted in a recent article published in Wisconsin Law Journal. The article clearly indicated that the purpose of these summons is to only obtain default judgment against the debtor and not to actually try the case.

It's a simple fact that consumer debtors are unsettled by credit card debt summons from law firms when they can't pay their debt. However, with How to Beat Collectors in Court Survival Guide, it will be easy to answer these summonses in the court. Debtors will learn how to demand proper documentation so that they have an edge when answering for their debt in the court.

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Debt Relief Without Long Payment Plans Even If You Have $100k+ in Debt.

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Credit Card Debt Consolidation

Credit Card Debt Consolidation

Companies offering debt management and counseling typically use debt consolidation regularly but not correctly. They use this term in a way that they confuse the consumer. When these companies use this term, they may mean any of the following

1- Typically, they indicate an approach similar to debt management where a monthly amount is paid to the agency. This monthly payment is made from your consolidated sum.

2- It can also mean your monthly lump sum payments are paid for credit card debt but they are accumulated so that it can be used for settlement or negotiation for less than 100% of debt.

3- It can also mean debt consolidation loan.

Credit Card Debt Consolidation Loans

A debt consolidation loan simply means a secured or unsecured loan. Secured loans have collateral security which secures these loans. It can be anything from your home equity to any other thing of value. However, if you are unable to pay off your loan, you will have to give up certain interest in your home. To get a secured loan, you will have to have good credit. If your credit history is really good, you will easily get secured loan on low interest. On the other hand, if your credit score/rating is bad, you will still get the loan in most cases but at a high interest rate. It will come with tough conditions, putting your home equity at a greater risk. To apply for a debt consolidation loan, you will have to use your home equity. You can also take out your existing home equity line of credit to apply for a debt consolidation loan. If you're taking the latter option, you can easily enjoy flexible payments that will eventually become low after first few months.

With unsecured debt consolidation loans, you will have to pay higher interest rate as compared to a secured loan. On the other hand, if you have bad credit, you will have very tough loan terms, which isn't usually worth going for it.

Remember, a secured consolidation loan will put your home equity at a great risk. You will have to make sure that you're making all the payment and if you can't, you should avoid taking out the loan at all costs. Nevertheless, with unsecured loan, you will you will be risking your finances because of unreasonably high interest rates.

Think Money will provide you with everything you need to know about debt consolidation in the UK. It also helps you understand repaying credit card debt.

Click here and Visit FreedomFromCreditors.com and Discover today the Simple Solutions for Fast

Debt Relief Without Long Payment Plans Even If You Have $100k+ in Debt.

CALL US NOW! 1-800-871-6817.

How To Have Power Over Your Creditors

How To Have Power Over Your Creditors

Understand Debt Collection Agencies to Eliminate Credit Card Debt



Original creditors such as credit card companies and junk debt buyers use Debt Collection Agencies (CAs) to collect their debt. Some debt organizations also have their own debt organizations integrated into their setup. Typically, these companies also have junk debt buyer and collection law firms working as part of original creditors.

Federal Fair Debt Collection Practices Act (FDCPA) controls all such collection agencies. However, the federal Act is differently applied in all the states with some amendments by state legislatures. Some states also require CAs to obtain license in order to operate and collect debts. CAs usually violates laws enumerated in FDCPA and that becomes the ground for law suits filed by consumers and their attorneys.

Typically, Collection Agencies aren't capable of many things that they claim. Here are some of the major things
- Collection Agencies threaten defaulter consumers with consequences such as arrest. However, defaulters can't be arrested because bad debt isn't a criminal act in any state. However, these CAs violate law themselves by threatening with arrest, which they can't do legally.
- These CAs will also threaten defaulters to garnish their wages. However, this is not possible unless there is a judgment specifying such thing. In addition, some states don't allow wage garnishing. CAs usually violate law when they threat wage garnishing.
- Just like the above two violations, CAs also threaten to seize bank accounts of defaulters as well. However, this is not possible without a judgment and CAs violate FDCPA.
- If your account record has been lost and you've been submitting payments to collection agency, they will threaten you that you owe original amount. Nothing to worry, this is again something where CAs violate FDCPA.
- To get more money from you, these collection firms will also add their own fees to the original amount.
- These agencies also violate FDCPA by calling your neighbors and asking them to collect alleged debt.
You can easily learn all about how to respond to debt collectors and defeat them. Credit Card Debt Survival Guide will help you with this.

Click here and Visit FreedomFromCreditors.com and Discover today the Simple Solutions for Fast
Debt Relief Without Long Payment Plans Even If You Have $100k+ in Debt.

CALL US NOW! 1-800-871-6817.