Many of us have struggled and are still struggling with debt. It’s a stress that is hard to not wake up thinking about, especially when creditors call and send letters on a regular basis. Imagine how much more frustrating creditors would be if they hounded you and sued you based on false credit card debt reports.

Last week a woman filed a federal lawsuit against Target Corp. and the company’s law firm. She contends that she was targeted by debt collectors who went after her because of fraudulently prepared affidavits processed by a Target official in regard to alleged unpaid credit card debt. She apparently is not the only supposed victim of the false affidavits.

Since thousands of consumers were reportedly affected by false Target debt affidavits, according to CNBC, the one woman is seeking to make this a class-action lawsuit against Target and its firm. The legal claim says that the affidavits used to support debt collection cases against the Target consumers were falsely completed. Basically, they were not reviewed according to legal standards.

Because the affidavits were allegedly fraudulent, the collection actions taken against the woman and thousands of other consumers were unlawful. The unethical practices meant legal costs for consumers, plus negatively affected credit scores. As a result of the federal lawsuit, the woman does want compensation, though sources don’t confirm the exact goal of the potential class-action lawsuit.

This case of a supposed “false affidavit factory” sounds eerily similar to the many cases of foreclosures that are now in question due to foreclosure paperwork not being properly reviewed. Let’s hope that we won’t have another crisis on our hands.

Source

CNBC: “AP: Pa. woman sues over Target debt collection,” 20 Apr. 2011