04 Sep Zombie Debt, Being Sued by a Debt Buyer
You read the papers and a company you never heard of, say, Asset Acceptance, is suing you.
They bought the bad debt from a credit card company. This is now a multi-billion dollar industry, big banks and credit card companies sell charged off debt, that is, debt they cannot carry as an asset on their books, to companies that buy bad debts for pennies on the dollar, then try to collect them.
What did they get?
The debt buying company gets a one page computer printout with your name, account number, and a balance. No contract between you and Capital One, or, whoever. No statements. Not even a breakdown of the principal, interest, late charges, an accounting of how the total balance was calculated.
In Michigan, this is not enough to win a lawsuit. They cannot prove that you owe the money.
The debt buyers are not concerned with that, as most people do not respond to lawsuits. With no response, the debt buyer wins by default and moves to garnishment and/or other collection measures.
The debt buyers and their lawyers know this, and frequently drop the suit if met with a response.
So, as always, when you get legal papers like a lawsuit, contact an attorney. Just because it was filed with a court does not mean it is true.
Latest posts by Jay Fleischman, Esq. (see all)
- 5 Things You Need To Know About Bankruptcy Exemptions Before Your Case Is Filed - August 28, 2013
- Beware Of This Person When Trying To Wipe Out A Second Mortgage In Chapter 13 - August 26, 2013
- Our Best Tips For Filing For Bankruptcy Without Your Spouse - August 22, 2013
- 5 Ways To Celebrate Financial Literacy Month - March 31, 2013
- Burning Money With Handcuffs On - March 21, 2013
Sorry, the comment form is closed at this time.