What Evidence Does the Debt Buyer Have to Provide to Court in a Credit Card Collection Case?
- Many junk debt buyers file lawsuits hoping people will not respond or show up in court to defend themselves. That results in an automatic victory for the junk debt buyer for the full amount owed. The judge in the case issues a monetary judgment called a default judgment. This gives the debt collector the right to seek bank or wage garnishment to collect the full amount, if necessary.
- People who do fight back have a chance to win in court, according to Pennsylvania consumer attorney Greg Artim. He reports that junk debt buyers often do not have enough documentation to win in court. Records are often misplaced on old debts, with junk debt buyers sometimes unable to prove that a debt is valid and the person sued is responsible.
- Representation by a local consumer affairs attorney is the best option for battling junk debt buyers in court. However, people who are sued can represent themselves. To win the case the junk debt buyer must show clear evidence that you are the person who charged purchases to a credit card and refused to pay. That includes documentation such as the original application that you signed, credit card charge slips, monthly statements and copies of collection letters sent to you asking for payment. Records packaged with junk debts aren't always that thorough, giving an experienced defense attorney opportunities to challenge the case.
- The Fair Debt Collection Practices Act, a federal law, allows original account holders to challenge junk debt buyers before a lawsuit is filed. After acquiring the old account the debt collector must notify you that it has the right to collect a debt that is allegedly yours.
- The first contact from the debt collector is usually by phone, with federal law requiring that the debt collector follow up in writing within five days of contacting you. The Fair Debt Collection Practices Act requires that the debt collector notify you in writing, telling you how much you owe and the name of the creditor. After receiving the letter you are allowed by law to challenge it by responding in writing. The law gives you the right to demand more proof from the debt collector, such as a copy of the last billing statement.
- The debt collector may respond to your letter -- or never contact you again. Ideally, junk debt buyers prefer easy targets including people who fail to show up in court or are unaware of their rights under the Fair Debt Collection Practices Act. If the junk debt buyer does respond, the documentation provided may not be enough to win in court. At this point consulting an attorney is best.