Creditor lawsuits are not a new development; they have existed for many
years. However, creditors have recently begun utilizing them in order
to achieve a result that is more irking than any harassing phone calls
in the middle of the night. Consumer advocates claim that creditors are
beginning to file credit lawsuits under the pretense that the consumer
will fail to show up, compelling the judge to warrant wage garnishment,
house liens, and more.
An article released by the
Huffington Post unveils the new trend. As economic hardships have caused the debt industry
to explode in the last decade, courts have seen an influx of credit lawsuits
over the same period. Creditors have now found that filing lawsuits almost
always leads to default judgments giving them the ability to collect through
wage garnishment and other dire consequences. However, the HP article
found that many of the consumers named in these lawsuits never receive
notification of the summons and therefore, are unable to appear in order
to defend themselves. Furthermore, many interviewed on the subject stated
that lawsuits were filed for credit cards they never owned, which no longer
mattered because the default judgment for the lawsuit they didn't
know about was already issued.
Default judgments are the last thing a consumer wants to have against them
when facing debt. While credit agencies deny the use of this tactic, the
results stand that many lawsuits are being filed and concluded in default
judgments, which result in terrible consequences for unsuspecting consumer.
Regardless of how much you owe or the nature of your debt, creditors and
courts are, by law, required to notify you of a summons. If you have suffered
from a default judgment issued against you following a lawsuit you were
never told about, contact the attorneys at The Woods Law Firm today for
defense of your consumer rights.