The basic business plan of the debt buying industry is to buy debt at pennies for the dollar. They usually by a list of consumer account without original documents to support these claims and without any documentation of how the “amount owing” was calculated.
The problem with this practice is that the debt buyer, has no incentive to obtain the proof required in a court of law because its investment is minimal. Typically a debt buyer sues consumers without any documentary proof that this particular consumer was indebted to the original creditor. . In every credit card account, the original creditor will possess:
- the debtor’s signed application/request for a credit card, 15 U.S.C. 1642
- required monthly account statements, 15 U.S.C. 1637(b)
- the credit card contract, amendments to the contract and
- charge slips or other evidence of each purchase and cash advance.We always recommend our clients to defend these type of lawsuits so they don't ended up
paying for something they don't owe.
For more information please contact our office at 201-880-5563 or visit us at www.ruizdoolanlaw.com for a consultation.
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