Anonymous
Anonymous asked in Business & FinanceCredit · 2 months ago

if the majority of people decide to default on payday loans and credit cards would it be impossible for them to sue all of us?

also factoring in the ute of limitations

9 Answers

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  • ?
    Lv 7
    2 months ago

    why would it be impossible

    They file the paper work as soon as you default when it goes to trial has no statue of limitations.  As long as charges/suit is filed in time is all that matters

  • 2 months ago

    You're assuming they would try to sue everyone at once. That's a fairly ignorant assumption. They have no problem suing individuals. Keep that in mind. 

  • Anonymous
    2 months ago

    Its rare that anyone gets sued over a payday loan. And its impossible that everyone stops paying their credit cards at once. Are you phucking 14?

  • 2 months ago

    No, it would not.  It would actually be much easier.  They could use the same forms repeatedly, changing just the names, addresses, dollar amount, etc.  They could make one trip to the courthouse to sue many of us at one time, instead of having to make a special trip just to sue one person.

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  • 2 months ago

    Not at all, they'd go after everyone they could, and they'd win.

  • ?
    Lv 7
    2 months ago

    No, it wouldn't be impossible.

  • 2 months ago

    They wouldn't have to sue all customers in default at once. They could take up to two years to sue. In the meantime, their credit scores would plummet, among other negative effects of having destroyed their credit.

  • 2 months ago

    No, it would actually make the process of suing everyone more efficient. They would send their agent to the local courthouse to file paperwork for a whole bunch of lawsuits instead of just a few. They'd get a whole bunch of hearings on the same day, back to back to back, so their lawyers could just make one trip and win judgements against a whole bunch of people instead of just one or two.

    Altogether, I think it would actually make it cheaper and easier for them to enforce their debts with lawsuits, judgements, wage garnishments and bank levies because they could do each step in big batches.

  • Anonymous
    2 months ago

    No, it wouldn't be impossible. In fact, it would be completely possible and entirely probable.

    They don't do their own collection, at least not after 60 days of default. Generally, after 60 days of default, because of various lending regulations requiring them to prove a certain degree of liquidity to remain solvent, they would contract the debts out or sell the debts outright to the tens of thousands of collection agencies out there whose entire business and fleet of employees does nothing but come after bad debtors, including suing them if that's required, usually in small claims courts since most of those loans are under the $5,000 statutory limit, meaning they don't need to hire an attorney but can just send a collection agent to the court to stand as plaintiff in the cases. They have six years to file suit before statute of limitations runs out.

    Even if so many people defaulted that it caused a lending company to go under, go bankrupt and dissolve, the debts are assets that would be sold off as part of the bankruptcy proceeding in order to repay the lending company's creditors, it's employees' outstanding wages, preferred stockholders, and then common stockholders. The purchasers of those debts would be the the tens of thousands of collection agencies out there that I spoke of before. Usually debts are sold off in lots, like lots of a hundred or a thousand. At that point, you now legally owe the money to the purchaser of your debt. I say this because if you're think that a lender going under erases your debt to them, you've got another think coming.

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