Credit Card Debt Lawsuits
Dec 07, · If your credit card company or a debt collector notifies you of a lawsuit with the service of a summons and complaint, you will typically have up to 30 days to respond. If a credit card company sues you, one strategy is to challenge its right to do so. It’s the plaintiffs’ responsibility to prove that you owe them money. Make them do it. Debt often gets sold, so ask for documentation of a credit agreement that you signed and proof that the paperwork is accurate and came from the original creditor.
If wwhat ignore a court actionit's likely that a judgment will crevit entered against you for the amount the creditor or debt collector claims you owe. Often the court also will award additional fees against you to cover collections costs, interest, what days of the week does the irs deposit refunds attorney fees. Judgments give debt collectors much stronger tools to collect the debt from you.
Warning: You also may lose the ability to whfn that you owe the debt if a court issues a judgment against you. A judgment is a court order. Only the court can change it. It's very difficult to get a judgment changed or set aside once the case is over.
You have a much better chance to fight a collection in court if you defend the case than if you credkt until a judgment is entered against you. You may also be able to work out a compromise or settlement by negotiating with the debt collector before a court makes a judgment.
Some attorneys may also offer free services, or charge a reduced fee, such as through your local bar association.
You may wish skes find an attorney who has experience in the Fair Debt Collection Practices Act and debt collection issues. There may also be legal aid offices or legal clinics in your area who will offer their services for free if you meet their criteria. Servicemembers should consult their local JAG office.
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Skip to main content. Debt Collection. If you're sued by a ssues collector, you should respond to the lawsuit. You can respond personally or through an attorney, but you must do so by the date specified in the court papers. Creeit see what you're looking for? Browse related questions What is harassment by a debt dl Can debt collectors call me anytime they want, day or night? What is a debt collector and why are they contacting me? Learn more about debt collection.
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What to do if you’re being sued for credit card debt
Aug 04, · How to react when you are sued by your credit card company depends on a number of things -- including, first and foremost, whether you acknowledge that you owe the debt in question. You Know You Owe If you know you owe the debt and the amount is correct, there are a . Aug 01, · The Credit Card Company Could Sue You If You Break the Terms of the Contract. When you originally obtained the credit card, you signed an agreement either electronically or in writing. This agreement defines both your and the credit card company’s rights and responsibilities. Falling behind or failing to make payments on the credit card. Apr 22, · Being sued for a credit card debt merely means that someone is claiming you borrowed money, that you failed to pay, that the balance is what they claim it to be, and that you are legally obligated to pay this company. Do nothing, and the court will assume the debt buyer is telling the truth.
If you fall behind on your credit card payments —or stop paying altogether—your credit card company has a right to file a lawsuit against you.
In this article, you'll learn how and when a credit card lawsuit might happen and what your options are to defend against it. If you're delinquent on your credit card payments, the credit card company or a debt collector hired by the credit card company might sue you to recover the money you owe.
When you originally obtained the credit card, you signed an agreement either electronically or in writing. Falling behind or failing to make payments on the credit card typically constitutes a violation of that agreement and the credit card company may then sue you. Before you get sued, credit card companies typically try to minimize their losses by selling the debt to a debt collector. That debt collector becomes the legal owner of the debt and possesses most of the same rights the original creditor possessed.
If you fail to settle the debt with the debt collector, it might be sold and resold again. Once your debt reaches the debt collection law firm, the attorney will usually give you one last chance to settle the debt to avoid a lawsuit. If you don't defend against the suit, you will automatically be held legally liable for the full amount stated in the lawsuit. State law controls what procedures the credit card company must abide by when filing a lawsuit against you.
The credit card company typically files a document called a "complaint" to begin a lawsuit against you. The complaint lays out how much you owe and why the credit card company thinks you owe it. When you deny the statements in the complaint, you are defending against those statements by arguing that they're not true. These denials are typically a question of whether something is factually true or not.
In addition to making denials, you should make yourself aware of and allege any affirmative defenses that your case merits. Include a section in your answer where you raise any defenses to the complaint. With an affirmative defense, you argue that even if everything the credit card company alleges against you is true, it should still lose the lawsuit.
Statute of limitations—the debt is too old for a lawsuit. The statute of limitations is an affirmative defense where you argue that the debt collector can't sue you because of the age of the debt. Each state defines how long a debt remains collectible and this typically ranges from three to ten years. Failure to State a Claim. Most states require credit companies or the debt collector collecting on the account to attach to the complaint a complete set of documents.
These documents usually consist of the original contract and any document showing that the company suing you actually owns the debt.
If the credit card company or debt collector doesn't attach these documents, you can argue that it failed to state a claim. Invalid Service of the Complaint. Examples of invalid service are where the credit card company simply leaves it with a neighbor or just drops it at your doorstep. If the credit card company notified you of the lawsuit in an improper manner, you may argue invalid service.
Filing discovery requests forces the credit card company share relevant information to your case. If you believe the credit card company possesses documents or other information that supports your arguments, file a request with the court. The request should specifically describe the items you seek and why you believe they're relevant to your case. The outcome of your credit card lawsuit will likely necessitate further action on your part.
Your understanding of those possible outcomes helps you to prepare for the worse. The court rules in your favor. If the court rules in your favor, the credit card company loses and can't collect against you for the debt. You should consider requesting damages from the court against the credit card company to help pay for your attorneys' fees. The court dismisses the case. The court may dismiss the case for many reasons.
This might initially sound like a good outcome; however, a dismissal typically still leaves open the possibility for the credit card company to re-file the lawsuit to correct any error that lead to the dismissal. The court rules in favor of the credit card company. If the court rules in favor of the credit card company, you now have a judgment against you for a specific dollar amount.
The credit company will then ask the judge to allow them to collect on the judgment. Typical collection methods include, but are not limited to, garnishing wages, placing liens on property, and seizing property. If you need help responding to a lawsuit for nonpayment of a credit card debt, consider hiring a lawyer.
But keep this in mind: If it costs more to hire a lawyer than what the creditor seeks in the lawsuit, it might not make sense to seek attorney assistance. The information provided on this site is not legal advice, does not constitute a lawyer referral service, and no attorney-client or confidential relationship is or will be formed by use of the site. The attorney listings on this site are paid attorney advertising. In some states, the information on this website may be considered a lawyer referral service.
A Collection Agency Might Buy the Delinquent Credit Card Debt Before you get sued, credit card companies typically try to minimize their losses by selling the debt to a debt collector. Steps in a Credit Card Debt Lawsuit State law controls what procedures the credit card company must abide by when filing a lawsuit against you.
The Credit Card Company Files a Complaint The credit card company typically files a document called a "complaint" to begin a lawsuit against you. Common Defenses to Credit Card Lawsuits With an affirmative defense, you argue that even if everything the credit card company alleges against you is true, it should still lose the lawsuit. Here are some common affirmative defenses to credit card lawsuits: Statute of limitations—the debt is too old for a lawsuit.
Discovery: Getting the Information You Need to Defend Against the Lawsuit Filing discovery requests forces the credit card company share relevant information to your case. Possible Outcomes of a Credit Card Lawsuit The outcome of your credit card lawsuit will likely necessitate further action on your part. Talk to an Attorney If you need help responding to a lawsuit for nonpayment of a credit card debt, consider hiring a lawyer. Talk to a Lawyer Need a lawyer? Start here. Practice Area Please select Zip Code.
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