These state laws limit the amount of time creditors have to bring a case in civil court for an outstanding debt. That’s because of statutes of limitations on debt collection. If the debt is old enough to be considered "time-barred,” it’s too late to sue you. The next question to ask yourself is whether this is an old debt. ![]() We talk more about mounting a defense below. You may have already paid or settled the debt with the original creditor or there may have been some error in the purchase procedure. If the credit card company sold a list of accounts to another agency, the debt buyer may not have the legal right to sue you. ![]() Get a free credit report to make sure any claimed debt is yours and has not been reported twice. Also remember that debt buyers and even credit card companies get names and addresses wrong, too. Learn how to protect yourself against identity theft and report credit card fraud. Mistaken identity: Someone opened a credit card account or did business with a company you don’t recognize.Ĭlerical error: The credit card company made a mistake in its recordkeeping.Īll of these cases involve mistakes that are not your fault. Identity theft or credit card fraud: You didn’t make or consent to the purchases. If you are served with a summons to appear in court but you have no idea who the plaintiff is, the situation could be a case of: If you don’t recognize this debt, you have the right to request the original creditor’s name and/or other information about the debt by writing a debt verification letter. This validation notice should include basic information about the debt. The federal Fair Debt Collection Practices Act (FDCPA) and related regulations requires debt collectors to send you a validation notice either before they contact you about a debt or within five days after the first contact. What If You Don’t Recognize the Debt or Debt Holder?Īlmost all debt collectors will make some attempt to contact you about the debt before filing a lawsuit. The party being sued (defendant) should be you or a co-signer of the account. The suing party (plaintiff) should be the credit card company, a financial institution where you have a bank account, or a company that has purchased outstanding debt that originally belonged to one of these entities. Taking into account a high interest rate and late penalties, the amount should still be one you recognize. When you’re sued, you’ll be served with two legal documents:Ī court summons ordering you to appear in court, giving the time, date, and locationĪ legal complaint describing the basis of the claim and stating how much you owe If you’ve been making good faith repayment efforts, the creditor filing suit may be going after the wrong person. Sometimes creditors or debt collectors target the wrong account holder. ![]() If you’ve been sued, the first question to ask yourself is whether the debt is actually yours. This is especially true for third-party debt collectors who purchased the debt from another party. Creditors are often unprepared to prove this in court. This burden of proof can be a tough requirement to meet. If you’ve filed for bankruptcy, did your case include this debt?Įven if you think that you legitimately owe the creditor money, you should still make credit card companies meet their “burden of proof” by proving to the judge that you owe the exact dollar amount they’re claiming. Is the debt old? Check the statute of limitations for debt collection in your state.ĭid the debt collector break the law when trying to collect the debt? Know and protect your rights. Start by asking yourself a few questions: Get Started with Upsolve What To Do if You’re Sued by a Credit Card Company In other words, you may have a better chance of beating a credit card lawsuit than you think. Because facing a no-show is easy, creditors and debt collectors may come to court unprepared and without the documents needed to prove their case. After all, when you don’t show up, they win by default - which happens in more than 70% of cases according to a Pew Charitable Trust report. Most credit card lawsuits are brought by debt buyers who don't expect you to show up to court. What Are Your Chances of Winning a Credit Card Lawsuit Against You?īetter than you might think! But you have to fight back.
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