Entitled, "Boom in Debt Buying Fuels Another Boom -- in Lawsuits," describes how the economic downturn has blossomed the secondary debt market. These behemoth-investor-collection houses prefer to initiate court lawsuits quickly to capitalize on the reality that the vast majority of consumers "default" (fail to appear in court in response to the Summons and Complaint). Since debt buyers pay pennies on the dollar for each invested debt -- yet sue consumers for full value -- their return on investment is massive.
The hardest hit consumers are minorities who lack the means to retain attorneys. Many of whom are never properly served due to a combination of "sewer service" and high moving rates amongst city consumers. Challenging these lawsuits is inconsistent with their business model of acquiring little proof, if any. Do it!
New York City courts are deluged with with these credit card lawsuits. Some judges must handle up to 400 of these cases per day. It's an untenable amount. Suing is more effective for debt buyers. Encore, the nation's largest debt buyer, states that only 6% of consumers respond to a letter, and only 18% respond by letters. Suing simply squeezes more money out of distressed paper.