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Credit card companies often file a credit card debt lawsuit against borrowers who fail to pay their outstanding debts. If you are a debtor facing such a lawsuit, there are ways to protect yourself before and during the trial as well as methods of negotiating your way out of the lawsuit altogether.
Verify and Review Debt
First, request that the credit card company verify your debt. This involves reviewing personal information, such as your name, address and Social Security number, as well as account information and balance history. Creditors must verify debt before issuing a credit card debt lawsuit, so be sure that they have first verified that the account in question is actually yours.
Similarly, be sure to review any records that the creditor uses to prove your debt. Make sure that payments and balances have been correctly calculated.
Statute of Limitations
Next, check your state’s statute of limitations to find out the legal time frame for initiating a credit card debt lawsuit. Usually, a creditor cannot initiate a suit if 6 or more years have passed since the last debt payment. State regulations differ, so call your county court to find out if the time frame for a lawsuit has passed. If it has, you may argue this point in court. If the time limit has not passed, the lawsuit still stands.
Write a Denial Letter
States offer the defendant a chance to deny the charges brought against her with a written statement of denial. The defendant generally has to write a denial response within a certain period after having received the initial notice of the suit. Again, check with your county court to find out how much time you have to submit a response. Often, if you fail to write a denial response within the allotted time, the creditor will win the lawsuit by default.
Be upfront and genuine in your letter. If there is erroneous information in the lawsuit itself (e.g., an incorrect balance request, a statute of limitations violation or a lack of evidence of debt), point this out in the letter. Once you’re finished, submit a notarized copy of the denial letter to the court.
Ask for and Gather Evidence
In a credit card debt lawsuit, the defendant has the right to ask the creditor to provide evidence of debt, as well as witnesses. In most states, creditors must provide the defendant with the evidence they plan to use against her, so that the defendant may prepare her case. To defend yourself, you may need to get copies of old bank records, billing statements or canceled checks. Compare your evidence to the evidence being brought against you and look for any inconsistencies or mistakes on the creditor's part. Often, credit card debt lawsuits are dropped due to lack of evidence or a request for an incorrect sum.
Verify and Review Debt
First, request that the credit card company verify your debt. This involves reviewing personal information, such as your name, address and Social Security number, as well as account information and balance history. Creditors must verify debt before issuing a credit card debt lawsuit, so be sure that they have first verified that the account in question is actually yours.
Similarly, be sure to review any records that the creditor uses to prove your debt. Make sure that payments and balances have been correctly calculated.
Statute of Limitations
Next, check your state’s statute of limitations to find out the legal time frame for initiating a credit card debt lawsuit. Usually, a creditor cannot initiate a suit if 6 or more years have passed since the last debt payment. State regulations differ, so call your county court to find out if the time frame for a lawsuit has passed. If it has, you may argue this point in court. If the time limit has not passed, the lawsuit still stands.
Write a Denial Letter
States offer the defendant a chance to deny the charges brought against her with a written statement of denial. The defendant generally has to write a denial response within a certain period after having received the initial notice of the suit. Again, check with your county court to find out how much time you have to submit a response. Often, if you fail to write a denial response within the allotted time, the creditor will win the lawsuit by default.
Be upfront and genuine in your letter. If there is erroneous information in the lawsuit itself (e.g., an incorrect balance request, a statute of limitations violation or a lack of evidence of debt), point this out in the letter. Once you’re finished, submit a notarized copy of the denial letter to the court.
Ask for and Gather Evidence
In a credit card debt lawsuit, the defendant has the right to ask the creditor to provide evidence of debt, as well as witnesses. In most states, creditors must provide the defendant with the evidence they plan to use against her, so that the defendant may prepare her case. To defend yourself, you may need to get copies of old bank records, billing statements or canceled checks. Compare your evidence to the evidence being brought against you and look for any inconsistencies or mistakes on the creditor's part. Often, credit card debt lawsuits are dropped due to lack of evidence or a request for an incorrect sum.
