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Creditors Suing to Collect? You May Want to Fight!

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The Great Recession has been causing havoc in many different sections of our economy, including unemployment, the housing market, and foreclosure. Foreclosure has been plagued with scandals of "blind stamping," mortgage companies have drawn fire for writing potentially onerous "pick-a-pay loans," and President Obama's HAMP program hasn't been has helpful as expected.

In addition, as more debts, especially credit card accounts, go into default, debt buyers called "factors" are buying up these claims for pennies on the dollar and then going after the debtors in court. This is where people need to be aware of what is going on in order to protect their rights should they get sued on one of these debts.

What Can Be Done?

Sometimes the obligations these debt buyers acquire are too old to sue on; others are simply not that well documented. I have written on this before and encouraged people to fight these lawsuits. However, events during this economy have shown that this is even more of a good idea. In this month's issue of the ABA Journal, Terry Carter writes that:

"In some ways, consumer debt collection has begun to mirror the mortgage crisis . . . Like mortgages, some debt has been bought and sold so many times that collectors have been known to file suit based on little more than a name, account number and dollar amount printed out from a computer record."

What this means, at least in New Jersey, is that they may well not be able to prove their case if pushed to trial!

This is also important because, although you may think you owe this creditor money (and thus believe that you have no basis for dispute), you have no way of knowing whether the balance they claim is accurate and, ironically enough, the debt holder may not know either!

So What Should I Do?

Want more information on how to fight back with your creditors? Then download my free book, The Biggest Secrets Your Creditors Don't Want You to Know. Become empowered and protect your rights!

If you are faced with a law suit by a creditor, you should contact and speak with an attorney to see if it is worthwhile fighting. If you live in southern New Jersey and would like my assistance, feel free to call my office at 856-432-4113 or contact me through this site to schedule an appointment in my Woodbury office.

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