Re: i see so many questions on suing...my view
[ Follow Ups ] [ Post Followup ] [ Credit Forum Index ]
Posted by Paul
(207.44.154.35) on March 04, 2004 at 19:33:09:
In Reply to: i see so many questions on suing...my view posted by catballou on March 04, 2004 at 19:01:04:
There are 1.3 billion credit card accounts (MC, VISA, Retail, Gas) in the US. Very, very conservatively, 3% charge off each year. That’s 39 Million credit card accounts that charge off each year Say, the average SOL is 4 years. Then there are 156 million charged off accounts within SOL floating around out there at any given time. So who gets sued, and who doesn’t? It IS a crapshoot. But a very low odds crapshoot. Lawsuits cost creditors hundreds of dollars in filing and attorney fees. If the consumer presents any defense, then the costs rise into the thousands of dollars. And paper judgments go unpaid 80% of the time! They don’t sue because it is not cost effective to sue. Nobody wants to spend hundreds or thousands of dollars to get a judgment that will never be paid. Look at these numbers and you’ll note that very few of the 156 million charge offs within SOL ever wind up in court. And it isn’t because people are paying on charged off accounts. All the collection agencies combined only recover 20% of charged off accounts. Sure, we see posters’ comment about being sued. That’s why they are on this board! But there are 1000 times more in the background with charge offs fading away over time. Source of credit card numbers in the US
http://www.cardweb.com/cardlearn/faqs/2003/august/6.xcml
Follow Ups:
Post a Followup
|
