Paperwork problems plague credit card debt collectors

Agencies specializing in credit card debt collection found tremendous success suing consumers over defaulted accounts, winning about 90 or 95 percent of their court cases, in the early 2000s, and that has allowed them to more aggressively pursue these balances. However, because these companies have filed so many cases in recent years, it has forced them to cut corners in an effort to expedite the process, according to a report from New Jersey Newsroom.

Often, the paperwork in these cases is inaccurate, or does not adequately prove that the defendant has any defaulted credit card debt that it controls, the report said. In addition, it's become increasingly likely that these companies are not properly reviewing the documentation.

These agencies often buy defaulted credit card debt from lenders for a small percentage of their total value, and pursue these accounts aggressively to maximize their profits.