Debt Collectors Suing Credit Card Debtors Often Lack Correct Documents

Imagine your Credit Card Company suing you? Now picture them suing you without the right documents?

You may ask, ‘Does this really happen”. Yes, it does more often than you’d guess. CreditCards.com reports a rise in Credit Card Debt law suits in California, Nevada and Florida.

What you may find startling is that often the law suits are filed even though the Plantiff (Credit Card Company) lacks the proper documentation to file suit.

The problem, according to Judges, started years ago. Creditors have not been keeping records properly. When the Debt is assigned to a Debt Collector, those faulty documents are the only thing that the collectors have.

The good news is that  many Judges are catching on to these faulty records and forcing the Debt Collectors to go back and gather the proper documents.

That is why it is so important to “Validate” the Debt (in question)

Often while negotiating Debt for clients, I realized that the Debt Collectors have added extra fee’s and interest to the accounts. This is an unfair practice but just because it is unfair does not mean that it does not happen.

Validating the debt can save Debtors a lot of money and time. By validating the debt you (the Debtor) forces the collector to ‘prove’ that they have the right to collect or sue for the debt. Validating the debt (if done correctly) can also stop the harassing calls by collectors.

Also, many States in the U.S. forbid Debt Collectors from continuing collection efforts until after they have Validated the debt.

In a related story, Roger Benson filed a lawsuit March 23 in St. Clair County Circuit Court against Cavalry Portfolio Services LLC and Cavalry SPV I LLC.

Benson says he received a letter from Cavalry Portfolio Services in November 2010. They demanded nearly $6,300 for a debt. In January 2011, Mr. Benson claims he wrote a letter to Cavalry disputing the debt, and asking for validation of the alleged debt and demanding they stop contacting him.

A few days later Mr. Benson received another letter from Calvary, but it wasn’t a Validation or verification. It was another collection notice. So, Mr. Benson is now suing Calvary Portfolio.

We are not suggesting that you sue every Debt Collector, but we are saying that you have the right to sue. But it requires that you have the proper documentation on your side. Debt Validation is the best way to get the proper documentation.

In Operation One:  “Stop Debt Collector Harassment” Debt Warriors take you step-by-step through the process of Debt Validation. Sure, there are other sources that offer information on Debt Validation, but those sources don’t inform you about the tricks and traps that Collectors use to defy your attempts to validate the debt.

To learn more about Operation One, check out the Debt Warriors Arsenal (video course).

Despicable Collectors Use New Trick Called Debt Tagging

Operation One: Stop Debt Collector Harassment (Video Course)

Despicable Debt Collectors are using a new trick called “Debt Tagging”

What is Debt Tagging? It’s the act of matching an account with any Debtors (Consumers) name that just happens to be the  same.

How does Debt Tagging work? Here’s how:

1. The Junk Debt Buyer (JDB) purchases an account
2. The  JDB locates all people with the same name
3. The JDB tags the account with the person’s name

 

For example, say your name is Jane Smith? You’ve never owed a debt with the company, but because another person with your same name did owe the account, the JDB tags you as owing the debt. Tag you’re it.

The Mississippi Sun Herald News reported this relatively new but despicable tactic:

“Debt tagging is the aggressive activity committed by debt collectors pursuing consumers for debt that does not belong to them.”

The Sun Herald, reported that the JDB often fails to verify that the person in question being harassed. They just tag anyone with the same names and pursue collection. Once the Consumers name is ‘tagged’ the JDB continues the collection activity, including placing bogus information on the Consumers Credit Report.

In 2009, we told you about a story reported in the New York Times about Mark Hoyte. Mr. Hoyte was being sued for a $919 debt he did not owe. In that post we told you that Mr. Hoyte was being “legally robbed by law suit”. He tried to tell the Debt Collector that they had the wrong Mark Hoyte.

The Debt Collector refused to listen and filed a law suit against Mr. Hoyte, forcing him to put his job at risk by taking the day off to defend himself in Court. The bad thing is that Debt tagging can happen to anyone.

What’s worse is that often the JDB fails to verify who actually owes the debt. JDB’s also fail to notify the Consumer before the JDB places the bogus information on the Consumers Credit Report.

That is why it is so important to “validate” the debt in question. “Debt Validation” is the process of making the JDB prove that the Consumer (or Debtor) in question, actually owes the debt in question.

That’s why the Debt Warriors Arsenal starts with Operation One: “Stop Debt Collector Harassment”.

This video course takes Consumers step by step through the process of Debt Validation.

This process can save Consumers time, money, energy and stress. Debt Validation can also provide an iron-clad defense in Court. To learn more about Debt Validation click here.

To read more of the Mississippi Sun Herald Story: http://www.sunherald.com/2011/04/13/3023187/tag-youre-it-debtors-game-no-childs.html#ixzz1JPN97nu9

Consumers Can Repair Their Own Credit With Help From The FCRA

Operation Three: Credit Repair Self Help (Video Course)

Have you ever heard of the Fair Credit Reporting Act (FCRA)?

The FCRA is a U.S. Federal Law that regulates the collection and use of consumer credit information. Under the FCRA, the Big 3 Credit Bureaus have the responsibility to:

• Provide information regarding what is contained on the Consumers Credit Reports
• Investigate Consumer Credit Disputes (against Creditors or Debt Collectors) and
• Correct errors on Consumer Credit Reports.

Under various Statues like, § 616 of (15 U.S.C. § 1681n), a consumer may recover either actual money damages or a minimum of $100 and a maximum of $1000 plus punitive damages and reasonable attorney’s fees and costs for willful noncompliance with the Act.

Under § 617 of (15 U.S.C. § 1681o), recovery for a negligent violation is of actual damages, plus attorney’s fees.

What all the legal jargon above means that you have rights But as you can see, sorting out the maze of Statues and laws can be confusing. Operation “Credit Repair” guides you out of the maze of legal jargon.

Click here to watch a detailed video on Credit Repair.