The Annual Party Debt Collection Industry Is Notorious For Skirting The Federal Rules Of Evidence

827 Words Aug 12th, 2015 4 Pages
MEMORANDUM
Issue Presented
The 3rd party debt collection industry is notorious for skirting the Federal Rules of Evidence and Civil Procedure from the inception of a lawsuit to the granting of a judgment. Since both of these ideas do not generally apply to small claims court, and most defendants of these lawsuits are not represented, this industry has been allowed to run roughshod over the constitutional rights of defendants and clog the small claims court system with cases that would be easily thrown out of higher courts.

Question

What can our firm do to assist consumers in their defense of 3rd party debt collection lawsuits when it is economically infeasible for our firm to represent them?

Facts
The nature of the 3rd party debt collectors (herein referred to as ‘junk debt collectors’) industry allows for very little professional legal representation of the defendants in cases. For full comprehension of how the industry works, we must first understand how a valid debt becomes junk debt. I will use the example of a consumer opening a sub-prime credit card line of credit.

The consumer opens a line of credit through the usual channels, which includes signing a valid contract agreement. For some reason or another, they fail to make the payments or through record keeping error the account is closed with a balance due. Many times the original creditor will deem the account unworthy of collection attempts so it is charged as a write-off account.

The original creditor…

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