Litigation For Credit Card Debt
litigation for credit card debt
Credit Card Debt Settlements – Why Credit Card Debt Settlements Are Currently So Generous
The number of persons seeking settlement of credit card debt is constantly rising. There always was demand for such settlements even when the economy was in a good condition. With the recession still hurting the economy and unemployment and inflation still very high, people do not think twice about defaulting on credit card repayments to meet expenses for basic necessities.
Credit card issuers have had a tough time in this recession. Many faced bankruptcy and big issuers like Citi are still receiving assistance from the Federal government. They are under tremendous pressure to post some good results to boost investor confidence. Nobody is expecting credit card firms to break even and post profits. However, shareholders expect a reduction in losses. This is possible only by getting repayments from card holders.
Rather than participating in long drawn litigation proceedings, lenders are ready to offer generous waivers as long as it helps them settle the debts and post some income on their financial statements. Inflow of cash will help reassure shareholders that the company still has the potential to survive the bad times. News that more and more customers of the company are opting for bankruptcy is only going to lead to increase in criticism.
However, the problem is that there are many customers who cannot repay the debts even after a waiver of 70% of the debt. Giving up in frustration is not an option for lenders today. That is the reason why they are offering even more benefits in the form of installment facility to repay the amount left after the waiver. The remaining amount can be recovered over a period of one to two years with deposit of the funds in the escrow account.
The generosity by the lenders seems out of place as they are more notorious for being very ruthless in their approach. Firstly, the government is yet to release the second half of the stimulus package. Secondly, the government will not look kindly upon another round of bankruptcies. Thirdly, the lenders see no point in prolonging their transactions with borrowers who are so badly placed that they would never be in a position to repay their debts in full no matter how long the lenders wait.
Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free.
FreeDebtSettlementAdvice.com is one of the largest and most respected debt relief networks on the marketplace today. To find a debt settlement company through FreeDebtSettlementAdvice.com check out the following link: Free Debt Advice
Here in California, can a creditor pursue litigation for credit card debt to collect from your wages?
They can pursue it, but that doesn’t mean they will get it or that the case will even make it to court.
When you recieve your original summons to appear in court you are given the option to file a response. Do so. Let them know in no uncertain terms that you and your attorney will be appearing in court.
Then write a letter stating willingness to cover half of the original debt under the condition that the suit is dropped and a full validation of the debt is provided. Of course, they will not be able to provide a full validation if they are a collection agency. Knowing that you are requesting one will demonstrate that you will also request this at court and its something they cannot provide.
Plus, I agree with the above poster. Check the date of last activity on the debt. If its older than 4 years then they have just violated the FDCPA and you can countersue for damages.
Keep in mind for most cases, the person never shows and the CA gets a default judgement. That is IF they really intend to sue. When the person being sued steps up to the plate and requests full validation they make things MUCH harder on the CA since its very difficult to prove these cases. The CA doesn’t want to deal with a difficult case and many times will merely slink back into the shadows. Most of the time the threat to sue and garnish wages is a scare tactic. If the debt is older than 4 years send them a full cease and desist letter barring them from contacting you.
Best of luck.
