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  1. #1
    Join Date
    Oct 2009
    Posts
    18

    Default Choice of State to File Lawsuit

    My question involves collection proceedings in the State of: Texas

    Am I correct that a junk debt collector has the choice of where to file a court action for collection of that debt in either the State where the credit card was issued or in the State where the debtor currently resides?

    If that is the case, wouldn't it usually be to their advantage to file in a State where the debtor does not live to force them to incur additional travel expenses? So the question is, do they actually do this or are there other considerations involved?

    On the same line, can they not play sneaky games that way and get summary judgements by filing the notice of the court action out-of-State in a newspaper such that you'd have no way of knowing you were even sued?

    And, if they don't have a definite address for you, can't they just go the newspaper notification route in either State and get summary judgements by default against those of us who don't take the newspaper?

  2. #2

    Default Re: Choice of State to File Lawsuit

    Any collector must sue where you live. It may not be the exact county you live in but it should be relatively close. For example, if you live a couple of miles from another county then the judge would probably consider the case within the court's jurisdiction.

    811. Legal actions by debt collectors [15 USC 1692i]

    (a) Any debt collector who brings any legal action on a debt against any consumer shall --

    (1) in the case of an action to enforce an interest in real property securing the consumer's obligation, bring such action only in a judicial district or similar legal entity in which such real property is located; or

    (2) in the case of an action not described in paragraph (1), bring such action only in the judicial district or similar legal entity --

    (A) in which such consumer signed the contract sued upon; or

    (B) in which such consumer resides at the commencement of the action.
    You can download a copy of the FDCPA here:

    http://www.ftc.gov/bcp/edu/pubs/cons...edit/cre27.pdf

    Collecting a debt is not the same as probate. The collector already knows who owes the debt and should know where they live. In probate the executor usually does not know the complete affairs of the deceased and a notice in the newspaper is apropos.

    There have been several cases of default judgments entered when the collector used an old defunct address. If you or anyone has changed address without sending notice to the OC or JDB then this is a real possiblity. These default judgments can be easily vacated once the debtor finds out because the debtor was not properly served.

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