Effective January 1, the Maryland Court of Appeals has instituted new rules that will require debt buyers to have more proof before they can obtain affidavit judgments in debt collection cases. This is good news for debtors.
Debt buying companies focus on buying debts from credit card companies and other creditors that are past due. They buy the past due debt for a fraction of the amount owed. Frequently, the only proof the debt buyer has regarding the debt is the debtor’s name, address and social security number.
Since debtors often don’t appear in court on debt buyer/debt collection cases, debt buyers bank on obtaining monetary judgments by default. However, the debt buyer frequently does not have sufficient reliable documentation showing ownership and the details of the debt (principal, interest, etc.).
Now, debt buying companies will have to have additional information when filing these types of cases. Better proof of the debt and interest is now required in addition to proof of ownership by the debt buyer.
A win for Maryland consumers!
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