Know Your Rights

Blog

Maryland Makes A Push for More Proof In Debt-Collection Lawsuits

Marquis Jones has been sued by a debt collection company for a credit card that she does not believe she owes. The firm never proved she did own the debt.

But Jones was never given notice of the lawsuit. The collection company's process server claimed her nonexistent "wife" accepted the summons. The county judge approved a $992 judgment against her last year.

This scene is typical in courtrooms throughout Maryland and across the country. Companies buy past-due consumer debts and sue to collect have won judgments against even though documentation to prove those cases is very thin.

"This is a $100 billion-dollar-a-year industry … the sale of 'accounts receivable,' " said Peter A. Holland, who runs a University of Maryland law school clinic that specializes in debt cases. "It's created a crisis in our small-claims courts. There's tens of thousands of cases filed without proof just in Maryland. Nationwide, it's in the tens of millions."

Debt buyers typically purchase default accounts at a low price with little information about the debt and debtor. Then they swear in an affidavit that all the information is correct. Generally, they don't pay to acquire the necessary documentation like signed credit card agreements or a list of purchases. What ends up happening is that mistakes are made such as suing twice for the same debt, suing on debts discharged through bankruptcy, debts already paid and debts incurred by people with similar names.

To read more, click here

SmithMarco, P.C., can help with your debt troubles whether it is a lawsuit, collection calls or garnishment.  Check our website or call us.   

 

 

 

 

 

 

 

+ Add Comment1 Comment
Betsey|Thursday, September 29, 2011
I have been so bewiderled in the past but now it all makes sense!
Name (required)
E-mail (will not be published) (required)
Want to share a link?
Comment