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

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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.


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?

The nature of the 3rd party debt
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This transaction is usually done by simply selling a spreadsheet list that merely contains an account number, the amount owed, the last name of the debtor and possibly an address and phone number. The amount paid for this information by the junk debt buyer is many times $.03- $.10 on the dollar of the charged off amount. The reasoning for the original creditor to charge off these account generally stems from missing or incorrect records or just simply not being worth their time and money to act on for collection.

The junk debt collector then takes these lists and researches what little information they have purchased to form a file on who they think owes the debt. Many times the junk debt brokers break down the information by geographic location and then resells the lists making the debt collector’s job easier. Through the selling and reselling of these debts, the chain of assignment/title is usually non-existent when the lawsuits are filed. Many times the statute of limitations has expired for legal action to commence, the debtor had already been sued for the said debt, the wrong person is sued or the debtor does not owe the amount claimed.

Since the Federal Rules of Evidence do not apply to small claims court, the junk debt collectors focus on only those debts they can file for in small claims. This compounds
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