California Residents Getting Sued Over Credit Card Collections Bills

California Residents Getting Sued Over Credit Card Collections Bills

Pacific Debt, Inc. is not a law firm and this article should not be construed as legal advice. Only a licensed attorney in your state is able to provide legal advice.

California Residents Getting Sued Over Credit Card Collections Bills

From 2015 to 2019 the number of California residents being sued over credit card collection bills has more than doubled, going from 9,510 cases to 24,453 cases. And that number probably will not go down any time in the near future. Thanks to the economic hardships created by the Covid-19 epidemic, more Californians can expect a legal summons for their unpaid bills. 

Rule 3.740 Collections

Rule 3.740 collection cases allow debt collectors to sue debtors who owe less than $25,000 that came from buying property, services, or money on credit. The $25,000 does not include attorney’s fees or interest. Most of the time, debt collectors are focusing on credit card debt. 

If you are sued for credit card debt and the judge finds for the debt holder, the judgment can follow you for the next ten years, accruing interest that you must repay

Getting the Rule 3.740 Collections Case Letter

If you have received a summons for debt collection, Do Not Ignore It. It will not go away and you may be in a worse financial situation than you are now if you do nothing. Collection lawsuits action and documentation.

Step 1: Respond within 30 days in writing. Yes, the summons may have a date and time to appear. That date is not for you, it is for the debt collector. You must respond within 30 days of receipt or risk garnishment or other legal action. This link contains fill-in forms or suggestions for how to write a letter to the court. 

Step 2: Make certain that this is your debt. Debt collectors do make mistakes and may try to collect on debts that have aged out (generally 2 to 4 years in California). 

Step 3: Gather together all documentation, payments, and correspondences concerning the debt. If there are any discrepancies, courts sometimes have self-help centers or you can contact a legal firm that specializes in debt collection cases. 

California Rights and Protections

Because debt collection had included questionable actions, debtors have rights and protections guaranteed by both federal (FDCPA) and California debt protections (CFDCPA) laws.

Overall, debt collectors can NOT:

  • Charges more than 10% interest
  • Garnish more than 25% of wages
  • Use/threaten physical force or criminal tactics to harm you, your property, or your reputation
  • Accusing you of committing a crime for not paying the debt
  • Make/threaten to make defamatory statements to someone else
  • Threaten arrest, to seize assets, or garnish wages, unless actually planning to take such action
  • Use obscene or profane language
  • Cause you to spend money you wouldn’t otherwise have spent (ie long-distance telephone calls)
  • Call you repeatedly or let your phone ring repeatedly
  • Call frequently
  • Contact your employer, except to verify employment or health insurance status, garnish wages or locate you
  • Reveal information about debt to anyone except your spouse or your parents if a minor.
  • Publicly publish your name for failing to pay
  • Send a postcard or letter with revealing information on the envelope
  • Claim to be someone other than a debt collector, including a governmental official
  • Use stationary that appears to be from a law firm
  • Charge you collection or attorney’s fees unless legally allowable
  • Threaten to report you to a credit reporting agency if they have no intention of doing so
  • Send a letter claiming to come from a claim, credit, audit, or legal department unless it actually is

Debt collectors must:

  • Disclose caller identification
  • May contact your family to locate you
  • Must serve you with notice of a lawsuit if suing you
  • Must sue you in the county where you first incurred the debt

If you have been on the receiving end of these illegal actions, talk to a lawyer. You can find one by checking out the state bar, asking friends, or looking online. Searches such as “san diego attorneys collections” can yield excellent results.

In Debt But Not Summoned

If you haven’t been summoned but are worried that you will be, check out your California debt relief options. Once you understand what options are out there, give Pacific Debt, Inc’s award winning debt specialists a call. They will answer your questions, review your unique situation, and even send you to a trusted partner of Pacific Debt’s program is not right for you.

Experts in debt collections expect the number of Rule 3.740 collection cases to skyrocket as the pandemic winds down. Many Californians have been using their credit cards in order to survive these last few months and the debt collectors are ready to feed off their misery.

About Pacific Debt, Inc

Pacific Debt Inc is one of the leading debt settlement companies in the US and we have settled over $300 million in debt for our customers since 2002.

If you’d like more information on debt settlement or have more than $10,000 in credit card debt that you can’t repay, contact Pacific Debt, Inc. We may be able to help you become debt-free in 2 to 4 years. 

Pacific Debt, Inc has been consistently named one of the best debt settlement companies for years. In 2020, we were proud and honored to have earned two #1 rankings for our customer service. 

Pacific Debt, Inc is accredited with the American Fair Credit Council and is an A+ member of the Better Business Bureau. We rate very highly in Top Consumer Reviews, Top Ten Reviews, Consumers Advocate, Consumer Affairs, Trust Pilot, and US News and World Report.

Pacific Debt is currently providing debt relief coverage in the following states:
Alabama, Alaska, Arizona, Arkansas, California, Colorado, District of Columbia, Florida, Idaho, Indiana, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, Nebraska, New Mexico, New York, Oklahoma, Pennsylvania, South Dakota, Texas, Utah, Virginia, Wisconsin
* Other states can be connected to one of our trusted partners

For more information, contact one of our debt specialists today. The initial consultation is free, and our debt experts will explain your options to you.


Disclaimer: We are not lawyers and are not giving legal advice. If you are looking for legal advice, you should contact an attorney!

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