Check out this blog post by Boot Camp graduate Brian Cannup. Brian comments on the story “Automatic Debt-Collection Lawsuits Engulf Courts” in the New York Times.
The Federal Trade Commission is encouraging all states make modifications to their debt collection statutes to promote involvement by the alleged debt collector. In a report titled, “Repairing a Broken System“, the Commission addresses the numerous problems with debt collection. The primary path to success in credit card lawsuits is to plan on the debtor not appearing. Consumer involvement helps prevent judgments that are not based in law and helps prevent judgments that unearned fees and charges.
The basis of many defenses to these “suits without merit” is based in the Fair Debt Collection Practices Act. When a creditor files a lawsuit where there is not basis for the action this is already a violation of the law.
When the deputy sheriff of the certified mail comes to the house PLEASE do not ignore it. Many times consumers have valid defenses to make the just fail to assert their rights under the law.