Monday, June 10, 2013

Why can't alleged Credit Card Defaulters plead voluntary or involuntary default in front of a judge?

The term defaulting basically means missing a payment or being unable to make the monthly minimum payments for an extended period of time.

Alleged credit card defaulters should be allowed to plead voluntary default, involuntary default, or innocent when it comes to credit card default court cases.  

If a credit card default was involuntary, and the credit card defaulter proves to the judge that the default was involuntary, many good things would instantly happen, and not just for the debtor, but for the debt collector as well.

Our judges would finally have some latitude to do more than simply rubber stamp the alleged credit card debtor as a defaulter. Involuntarily defaulting on a credit card means the debtor had a legitimate life circumstance beyond their control occur that the judge could view as a plausible reason for involuntarily defaulting. 

Credit Card companies have held a 15 year monopoly (or longer) on credit card debt suspension insurance that resulted in such severe overpricing of their credit card debt suspension insurance product. Most sensible people saw credit card debt suspension insurance for the monumental rip-off that it was. 

However, the damage was done either way. Either the consumer agreed to be ripped off above and beyond what was reasonable and pay the severely overpriced credit card debt suspension insurance monthly premium, or they went without credit card debt suspension insurance and if a situation caused them to involuntarily default, they were then rubber stamped into default status by judges who have had their hands tied for the past decade and a half, or longer when it comes to how they rule.

Once evidence is entered by the alleged credit card defaulter that results in an involuntary credit card default verdict, the judge would then have the leeway to basically freeze the credit card debt at the amount it was when the last payment was made (plus any final purchases), while also freezing interest rate charges, penalties and fees going forward.

Even debt collection companies could benefit from discerning between voluntary and involuntary credit card defaults. Instead of viewing every credit card defaulter as being the same, debt collection agencies could now actually use all of those relatively worthless repeat calls to instead verify who is involuntarily defaulting, and  who is voluntarily defaulting. 

This would streamline debt collection  litigating costs and allow them to focus more time on those who truly want to rip off the credit card companies, aka the voluntary credit card defaulters. Collection agencies could actually decide that if a debtor defaulted involuntarily, they could simply get a promissory debt instrument from the defaulter with repayment terms without ever going to court.

In turn, Involuntary defaults could be considered credit score neutral and even turn into a benefit if over time the frozen amount owed was being paid down. Whereas right now, making a payment on a defaulted credit card account actually adversely affects a debtors credit score for as long as they keep making payments on that account, how crazy is that!

Take a moment and ponder how amazing it would be if Judges no longer were forced into a position of simply rubber stamping all credit card defaults as being the same. Take another moment and wonder why hasn't this been thought of before. 

Or maybe allowing a credit card defaulter to plead involuntary default has been thought of before, and simply shunted aside by the financial elite in the name of higher profits and lower civility to the common person.


Hi, Your comments matter greatly. If you post anonymously it helps if you briefly explain how your prior experiences relate to the comment you are leaving. Please no link ads unless you contact me first.

48 comments:

  1. Stupendous blog you guys have provided there, I will absolutely valuate your effort.
    free credit report online instantly

    ReplyDelete
  2. This info you provided in the blog that was really unique I love it!!! creditrepair.com review

    ReplyDelete
  3. I love all details that you give in your articles.
    company no win no fee

    ReplyDelete
  4. The stuff written in the blogs have allured me!!! lexington law review

    ReplyDelete
  5. This is very essential blog; it helped me a lot whatever you have provided.
    pay advance loan

    ReplyDelete
  6. Waooow!!! Really very cool site of blogs. You can imagine what you have done for me.
    payday loans online

    ReplyDelete
  7. It's been good to see your blog when I always look for such type of blogs. It’s great to discover the post here.
    best credit repair

    ReplyDelete
  8. This is really pretty cool place I like it because it has everything I want more on this blog soon.
    easy faxless

    ReplyDelete
  9. congratulations guys, quality information you have given!!!
    pay advance loan

    ReplyDelete
  10. I want to say thank to you people for this great and helpful info. Thanks!!!
    http://www.optionsincomeengine.com

    ReplyDelete
  11. The stuff in this blog is in not only incredible but also providing the great knowledge to the people. payday loan stores long beach ca

    ReplyDelete
  12. The stuff in this blog is in not only incredible but also providing the great knowledge to the people. 100 online payday loans

    ReplyDelete
  13. congratulations guys, quality information you have given!!! easy loan

    ReplyDelete
  14. I have really inspired from your blog post, I truly never got this type of informative things which I got from there. monument capital group

    ReplyDelete
  15. I am all time fond of reading the blog, when I reached to this blog I wondered to read such informative article, it inspired me a lot thanks. free credit reports from all 3 bureaus

    ReplyDelete
  16. Hey buddy, you have done the fantastic job, your post is genuinely amazing. Monument Capital Group

    ReplyDelete
  17. Thanks for sharing such a great and informative post with all of us. networking groups

    ReplyDelete
  18. Definitely, what an outstanding website full of informative posts, I will surely bookmark this site. build business credit

    ReplyDelete
  19. Sure this is quite wonderful! That’s why this gives the enhanced quality of information. payday advance garden grove blvd

    ReplyDelete
  20. Just saying thanks wouldn’t just be enough, for the fantastic fluency in your writing. http://www.noriomatsumoto.com/

    ReplyDelete
  21. Having read such an awesome piece of writing I am very delighted, will come back soon to visit this webpage. Thanks consumer change

    ReplyDelete
  22. Brilliant details you have kept in your article, I am truly impressed. loan

    ReplyDelete
  23. Very interesting! This work is really satisfactory for us. Thanks family health insurance

    ReplyDelete
  24. Enormous one blog! I have got very clear picture of the topic you shared here that’s truly amazing! monument capital group

    ReplyDelete
  25. Thank you so very much for sharing your thoughts with us your experience has helped me a lot!
    check over here

    ReplyDelete
  26. Pleasant effort, very edifying, this would help me to complete my task. Thanks for sharing it with us keep it up. authorized user tradelines

    ReplyDelete
  27. Have big thanks! That you presented this blog for us full of great knowledge, features, important points that nobody can say wrong.
    credit repair companies

    ReplyDelete
  28. Thanks a lot guys! What a great blog this is! It’s precious in favor of my knowledge. WWW.LISTACADEMYBONUS.NET

    ReplyDelete
  29. Thanks for sharing a nice post, looks like good; I will give it a try to utilize in my personal life as well. http://rogersdvs.com

    ReplyDelete
  30. I sent your articles links to all my contacts and they all adore it including me.i need a loan

    ReplyDelete
  31. This is really a remarkable topic close to my heart thanks. Keep up the good working!
    direct payday lenders

    ReplyDelete
  32. This text may be value everyone’s attention. How will I learn more?paydayloans

    ReplyDelete
  33. Cool blog! I found this blog very useful; have learned lots of thing here. car insurance

    ReplyDelete
  34. I certainly appreciate your stuff provided in the blogs.cheap life insurance

    ReplyDelete
  35. I sent your articles links to all my contacts and they all adore it including me.orogold cosmetics

    ReplyDelete
  36. I sent your articles links to all my contacts and they all adore it including me.compare auto insurance rates

    ReplyDelete
  37. These are truly amongst the wonderful informative blogs.testedhacks

    ReplyDelete
  38. It’s the ideal source that provide awesome piece of writing. I love reading this. payday loans

    ReplyDelete
  39. Smart post buddy! I will make the most of this information and spread it amongst my friends too! payday loan

    ReplyDelete
  40. I constantly emailed this site post page to all my friends, because if prefer to read it then my all friends will too.Businessman Mark Curry

    ReplyDelete
  41. I love this blog because it is user friendly with appreciative information.what is convertible term life insurance

    ReplyDelete
  42. Hey guys! I love your blog too much. I am waiting for more cool postings to read! Cheers… payday loans

    ReplyDelete
  43. Hey lots of thanks for this blog! Loving info!! pay day loans

    ReplyDelete
  44. I have checked this link this is really important for the people to get benefit from.MacFarlane Curry

    ReplyDelete
  45. I read your blogs regularly. Your humoristic way is amusing, continue the good work! cash advance

    ReplyDelete

Hi, Your comments matter greatly. If you post anonymously it helps if you briefly explain how your prior experiences relate to the comment you are leaving. Please no link ads unless you contact me first.