Credit card lawsuits occur when a credit card issuer sues the borrower for their non-payment. This is not necessarily a new phenomenon, although lately many issuers are being scrutinized more closely for potentially illegal debt collection practices such as robo-signing and falsified credit card statements and testimonies. Other tactics used by credit card issuers and their contractors include adding interest rates and other outrageous fees to customers’ bills, thus raising significantly the amount that the customers actually owe.
According to this New York Times article, “The problem, according to judges, is that credit card companies are not always following the proper legal procedures, even when they have the right to collect money. Certain cases hinge on mass-produced documents because the lenders do not provide proof of the outstanding debts, like the original contract or payment history.”
And sadly, many times, consumers will lose this fight simply because they did not show up in court to defend themselves; in these cases, a default judgement will be granted to the card issuer and they automatically win.
Have you been sued by your credit card company or a collections agency? Do you think the suit was wrongfully filed or that it states an amount that exceeds what you truly owe? Contact a credit card consumer protection attorney to help defend you. Call my law office at 949-200-8755 for a free consultation – our consumer protection attorneys in Orange County can help you determine the best course of action so that you don’t have to go at this alone. Our offices are conveniently located in Newport Beach, near the John Wayne Airport.