The Justices of the Supreme Judicial Court in Massachusetts have announced two new rules of civil procedure related to civil actions filed against individuals with unpaid credit card debts.
The objective of the new rules is to ensure that individuals who are sued for unpaid credit card debts know the identity of the original creditor. In some cases, when a subsequent entity purchases an unpaid credit card debt from the original creditor and then files a lawsuit against the individual, the individual may not recognize the name of the entity that purchased the debt.
From the Supreme Judicial Court:
The documentation will help consumers to identify the original creditor in instances where an assignee is seeking to collect an assigned debt and the documentation will help to confirm the amount owed.
The two rules — 8.1 and 55.1 — will go into effect on Jan. 1, 2019.
Rule 8.1 requires a plaintiff to file with a complaint in cases involving revolving credit agreements documentation regarding the debt; to verify the defendant’s address prior to commencement of the action; and to certify that the statute of limitations has not expired.
Rule 55.1, meanwhile, requires an affidavit that the documentation required by Rule 8.1 has been provided and that the plaintiff is entitled to judgment in the amount claimed; without such documentation a default or default judgment shall not enter. It also requires reverification of the defendant’s address under specified circumstances prior to entry of a default judgment.
From the court:
Collection actions involving credit cards make up a significant portion of the civil actions commenced in the Massachusetts courts, with many of them filed in the District Court and Boston Municipal Court. Many of these cases proceed to judgment by default, sometimes raising questions whether the plaintiff has used a current address for service of process.
More details about the new rules are available here
