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First Stage Credit Card Collections Lawsuit

  • Feb 17 2014

Have you been served with a lawsuit by a collection law firm on behalf of your original creditor?

Although uncommon, lawsuits can happen in the first stage of credit card collections for California consumers. So, despite the fact that your account hasn’t ever been sent to a debt collector, you can still be sued by the credit card company that sent your account to a collection attorney.

This can happen for a number of reasons:

  • If the credit card is fairly new and was maxed out in a very short amount of time, then the debtor missed consecutive payments.
  •  If the balance on the credit card is comprised mostly of a balance transfer made in the last 12-24 months, or other similar time period.
  • Recent purchases using  the card (last 6 to 12 months) make up a significant portion of the balance owed on the credit card.
  • The company used a software package or manually identified an account and found through analysis that the debtor is paying other unsecured creditors (other credit card bills).
  • Particular trends and policies in creditor collection.

In a majority of cases, the debtor can allow the debt to “sit”, meaning they don’t make payments on the card, for about 6 months before they run the risk of being served with a lawsuit. The risk for a lawsuit increases as more time passes and the debtor continues to neglect making payments.

It may be possible to negotiate a lump sum settlement with your original creditor. Another option is to finance your debt, setting up monthly payments in order to pay down the balance in a reasonable about of time. Another option, although more unlikely, is to negotiate a portion of the balance down with lower monthly payments.

Contact an Experienced Debt Defense Consumer Attorney

Fitzgerald Campbell is dedicated to debtor’s rights. We protect Orange County, California consumers from abusive and unlawful conduct by collectors. Our experienced attorneys are willing to fight for your rights, and litigate against the collection attorney, credit card company or collection agency responsible for harassing our clients.

Posted in: Credit Card Lawsuits, Debt Collections