How to Beat Creditors in Court
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.
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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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