Archive for the ‘credit card lawsuit’ Category
Wednesday, December 21st, 2011
Many consumers wonder if they will get sued when dealing with a third party debt collector? This is a valid question due to the fact that there are so many credit card lawsuits going on in general. The fact is that it is rare for a third party debt collector to sue a consumer.
There are a few different reasons for this. First, a third party debt collector will almost never have a signed contract with you (the consumer) and the original creditor. This contract must exist and be signed and dated by all effected parties stating that all three parties are in agreement of the transfer of the debt to the third party debt collector. Without this signed agreement, the third party debt collector will not have a case that will stand up in court.
All that being said, if the consumer begins making payments to the third party debt collector, the debt collector will then make the argument that there was consideration even without a written agreement. This means that your actions show that you agree to make payments to the third party collector that in turn takes the place of the written agreement.
I am sure it makes more sense now why third party debt collectors are always trying so hard to harass consumers to make at least one payment. For the debt collector, this one payment is as good as a written contract!
Creditors on the other hand do have written agreements with almost all consumers they extend credit to. Because creditors have these agreements they are more inclined to sue if the cannot collect on the account in a less costly way.
Both creditors and third party debt collectors will be left with no choice other than to sue if the consumer sends them a cease and desist letter. In my experience I strongly discourage sending letters to cease and desist. They will almost always worsen your situation.
Posted in credit card lawsuit, sued credit card | 4 Comments »
Thursday, February 17th, 2011
Think of a person with $30,000 (5 credit accounts) in credit card or unsecured debt. His debt payments might have tippled in recent months and his interest rate is now much higher than it was, maybe 20% – 30%. No matter what his payments are, or that is, what the creditor says they want every month, there is no law commanding any penalty on him if he basically stops making the payments to his creditors.
If he does zilch, and the most horrible of the worst case scenarios happens, all five creditors sue him and obtain a judgment within 16 months of the first nonpayment. This time period is typical, but the probability that they all would sue him at one time is extremely unlikely, whichever way.
The state statutes impose a legal interest rate attached to judgments of this sort (usually where the contracted interest rate exceeds the state’s legal rate) and that rate is not subject to the “unlimited” rate allowed in the credit agreements these days. It typically ranges from 5% to 12% depending on the state of residence.
If the person did nothing, and these judgments were received and the first judgment creditor completed a writ of continuing wage garnishment, they could get the maximum of 25% after the CCPA exempt amount (Table of Limits) and after tax withholdings; this would preclude all four other creditors from this example from taking any part of his earnings or paycheck.
If the person did nothing, and these judgments were obtained and the first judgment creditor obtained a writ of garnishment, they could get the maximum of 25% after the CCPA exempt amount (Table of Limits) and after tax withholdings; this would preclude all four other creditors from taking any part of his paycheck.
Simply put the monthly payments he was making 16 months ago, about $900 to $1100, at an interest rate of about 25%, could now be $300 through the wage garnishment, at a rate of 12% or under. That’s the refinance, and now he is paying only one creditor at a time instead of all of them at vastly lower rates and lower monthly amounts. He is paying based on his ability to pay and has financial control, and is not paying based on how much the world or the creditors says he owes, thanks to the CCPA.
Tags: Avoid Wage Garnishment, Can Bank Garnish Wages, CCPA, Consumer Credit Protection Act, Credit Card Debt Court, Employer Wage Garnishment Laws, Garnishment Laws, Prevent Wage Garnishment, Priority Wage Garnishments, Two Wage Garnishments, Wage Garnishement Employer, Wage Garnishment Laws
Posted in debt settlement, sued credit card | No Comments »
Tuesday, February 15th, 2011
The statute of limitations (“SOL”) for debts is the time limit after the debt occurs for the creditor to file a lawsuit to recover the debt. This period starts when the debtor becomes delinquent. When the SOL has passed on a debt the creditor will still be able to file a lawsuit. However, the defendant will be able to have the case
dismissed because the statute was “blown”. The Statute Of Limitations only covers legal action. The expiration of the limitations period does not affect other types of collection action or reporting to credit bureaus.
In collecting a debt, the creditor may theoretically continue with letters and telephone calls forever. Collection agencies can also keep up with the letters and phone calls, although third-party collectors are subject to the “cease and desist” provision of the Fair Debt Collection Practices Act.
Despite this, creditors and collectors rarely put much effort into collecting debts that have passed the statute of limitations. These debts can still be reported to credit bureaus for the time limits specified in the Fair Credit Reporting Act, regardless if they have been disputed legally. Credit cards and other revolving lines are generally considered Open Accounts. Auto loans and other installment agreements are Written Contracts. Promissory notes are usually mortgages, equity lines of credit, and student loans.
For information for reference on the statues of limitation you can check with your local attorney or give us a call. But again, If you actually plan on filing or defending a lawsuit, you should consult your legal counsel.
After a creditor wins a lawsuit against a debtor and is awarded a judgment by the court, there is a time limit for collecting that judgment called the Statute of Limitations (“SOL”). At any time after a lawsuit is won and before the expiration of the SOL, a creditor can collect on an unpaid judgment. However, many states allow judgments to be renewed one or more times, which could substantially extend the enforceability of a judgment, if the creditor is vigilant about the renewals. This can potentially result in a permanent legal obligation until it is paid. Be aware that paying an outstanding judgment can update an account that has long been “written off” by the creditor. Even though the creditor can collect forever, as in Delaware, sometimes it’s best to just let the judgment fall by the wayside, off the creditor’s radar, and eventually…off your credit report. You may want to consult with an attorney or ask us what the statute of limitations, and the allowable interest that can be charged on the judgment for your state is. Even though there is many examples and templates available to you for defending a lawsuit on your own, If you actually plan on filing or defending a lawsuit, you should consult your legal counsel.
Tags: debt settlement, judgment credit card, judgment debt, SOL, Statute of Limitations
Posted in sued credit card | No Comments »
Friday, January 14th, 2011
When one finds themselves in financial troubles they may not know what to do. It seems that the only way out of financial difficulties is through filing bankruptcy, but this is not necessarily the answer. Bankruptcy laws have changed and it is now harder to qualify for Chapter 7 bankruptcy. Chapter 13 bankruptcy does not always provide the protection one really needs. Bankruptcy does not protect a person from wage garnishments or stop debt lawsuits. In addition, it will give control of one’s finances to a third party who will do what they feel is best despite your wishes.
This can be an unsettling way to deal with a tough situation. When one has lost their job or income they need help in stopping payments and stopping debt lawsuits that can garnish their wages and other assets. There are many ways that one can accomplish this, but in order to be successful at it, one may find that they need the help of those who have had experience in such matters and can help to create the legal documentation that will do so. This can be a difficult task for someone who does not know the legalities of the situation.
Using a service can help you in dealing with creditors and in stopping debt lawsuits. A good service will make a credit collection agency prove their claims which can be difficult for them to do if they have acquired the debt from another company. In addition this can also stop lawsuits that really have no basis. A good service can also help you in getting your creditors to lower the amounts you owe and help in establishing a payment plan that you can work with, one that you are involved in creating and therefore that goes along with your wishes. This can be a tremendous benefit in gaining control of your finances.
There are many services that claim to be able to help by counseling you in your finances and consolidating your debts. In some cases this can be beneficial but to get the maximum benefits one needs to be able to stop debt lawsuits and protect their assets. They also need to find ways to decrease their debts while lowering the payments that they have to make. When one is looking for such a service it is important to determine exactly what they offer and how much experience they have in handling such matters. This can be your best decision in determining what will work the best in your situation.
Tags: debt elimination, debt help solution, debt relief solution, debt settlement solution, eliminate debt, help with debt
Posted in bankruptcy, credit card lawsuit, debt relief, debt settlement | No Comments »
Monday, January 10th, 2011
Going to court without a lawyer is more common than you might imagine. There is a definite trend in the U.S. for more people to fight without lawyers.
An American Bar Association study is reported to show nearly 1/2 of all pro se people believe lawyers care more about their own self-interest than their client’s rights.
If you go by calls and emails FreedomFromCreditors receives, there’s good reason for this! Lawyers who bail at the last minute. Lawyers who don’t really know what they’re doing. And, worst of all, lawyers afraid to pull judges’ chains and demand justice, instead of currying favor with the bench.
An estimated 50% of pro se people say they can’t afford a lawyer, and 30% of pro se people say they simply don’t want to spend the money.
About half of all legal actions in the U.S. involve at least one pro se party. That’s a lot of good folks who need more case-winning lawsuit know-how … since none of us were taught anything at all about justice in public school.
It’s a real problem, and it’s growing worse each day!
Ever ask yourself, “Why weren’t we taught anything at all about justice in our tax-supported schools?”
Who is keeping it all a secret?
As I learned in my years of experience with many lawyers, the answer is usually found when you “follow the money”! Who benefits from your legal ignorance?
You have a Constitutional right to get justice.
You have a Constitutional right to win pro se!
Learn your rights and win. If you’re threatened with a lawsuit and can’t afford a lawyer or aren’t sure you can trust the lawyer you have, visit www.jurisdictionary.com?refercode=HA0004 to get step-by-step tips and tactics for winning … with or without a lawyer.
Tags: credit card debt help, credit card debt lawsuit rights, fight with out lawyer, help fight lawsuit, jurisdictionary, Justice with out lawyer, no attorney, Pro Se, represent yourself in court, sued no lawyer
Posted in credit card lawsuit | No Comments »
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