The North Carolina debt collection firms buy up bad debts from the banks and credit card companies and goes after the debtors for the amounts owed. Debt collection agencies are now resorting to filing lawsuits against debtors in order to collect the unpaid debts in addition to sending demand letters and making collection calls. Due to the large volume of debts they must collect, debt collection agencies tend to rely on computer software to draft the summons and complaint.
The software automates the process, but it often make mistakes that goes unchecked; possibly resulting in lawsuits filed against the wrong person, for the wrong amount and adding into the amount demanded fees and interests that may be questionable at best.
Due to the stress caused by the lawsuit or collection letter, a debtor may decide not to challenge it, resulting in a default judgment in favor of the debt collection agency. Or, some people decide to fight the lawsuit, but without the assistance of a lawyer and gets lost in the maze of the legal process.
Laws has been passed in North Carolina that places a heavier burden on these collection agencies. If a debt collection firm has filed a lawsuit against you, please give us a call and see how we can help.