Sued By a Credit Card Company: Facts About Old, Charged Off Credit Card Accounts

For many people who are being sued by their card company, the process that led them to the very situation they are in now is somewhat hazy. This article aims to help delinquent debtors know more about what charged off account meant and what information can help their cause when they are sued by a credit card company.

A charge off card account refers to delinquent debts that card companies write off their books. Card companies and banks are required by law to charge off certain debts that has met a certain level of delinquency. For example, credit card debt will be charge off once it reaches 180 days of not being paid while personal loans only has 120 days before it will be charge off.

Apart from credit cards, charge off may be used with other types of debts as well including those that stem from mortgage, vehicle loans, etc.

If an account is charged off, what will happen next?

Unfortunately, many delinquent debtors tend to think that once their accounts have been charged off, they can forget about the unpaid balance. The fact is, debts don't just disappear on their own and yes, debtors are still held responsible for paying the money they owe. Charge off accounts will continue to be counted against the credit companies' reserve funds as a loss and will still hold relevance to the card companies' taxes. Before being sued by a credit company, agents will try to collect from delinquent debtors. If the card company can no longer handle the collection, they have the option to sell the account and let a junk debt buyer handle the collection.

Debtors are legally liable to pay the unpaid debts otherwise; they might get sued by their credit card company, regardless whether or not their accounts have been charged off. In order to determine how the period in which you have to repay your debt, you need to check with your state's statute of limitations.

Note that charged off accounts will remain on debtors' credit report for seven and a half years following the first delinquency. This means, you will get a bad mark on your credit rating, making it extremely difficult to secure any type of loan in the future. So don't wait until you get sued by your card company to repay your debts. Start taking action and you'll be saving yourself from a lot of headache.

Statute of Limitations: Defense Against Credit Card Lawsuit

The most effective defense against card lawsuit is also one of the most confusing. The Statute of Limitation or SOL refers to a period in which a bank or credit company may go after a delinquent debtor. One of the most confusing issues with regards to SOL is which SOL will apply, will it apply to state from which the CC company is based or the location of the debtor? Another notable issue is what SOL will apply for debtors who moved from another state after incurring debts. And for those with multiple debts in different states, which SOL should apply in their case?

The general rule of thumb is, the SOL that will apply is the one enacted on your current state or previous state you were based in when the card contract was signed. However, there are certain stipulations to the rules.

Although statute of limitations make great defense against card lawsuit, note that all states in the US feature different statutes of limitations laws and in some states, jurisdiction issues are still largely unclear. Card companies may file for a card lawsuit in the jurisdiction below:

1. The state that the card company is located
2. The state that the debtor is based when the credit card was opened
3. The current state that the debtor livesâEUR¢ The state that the outstanding charges were made

Factors To Determine Which Jurisdiction To Pursue

One: Certain states, like New York, passed laws that prevent credit card companies from taking advantages of longer statutes. Some states do not allow card companies from one state to sue debtors in another state.Two: Some card company will try to take advantage of states with precedent to get a more favorable outcome.Three: There are card agreements that with clauses for choice of venue. Simply put, the agreement dictates which court will preside over certain conflicts, including when being sued by the credit card company. That said, because many state judges are not fond of such clauses, they might not hold much significance.

When faced with a  credit card lawsuit , it is always important to determine the right defense against credit card lawsuit otherwise, you could be missing a critical fact that would otherwise drop the case altogether. Make sure you exhaust all efforts looking for the right information online and even offline (get advice from a debt attorney) to discover which steps to take when defending yourself in court  Pro Se .

Robo-Signing: Inaccuracies in Credit Card Lawsuits

Over the last couple of years, an issue with mortgage industry’s robo-signing has been a subject of controversy. Robo-signing refers to documents against homeowners whose homes are about to be foreclosed, which were allegedly reviewed by are in fact, inaccurate. Instead of presenting the right information or correcting errors, someone will sign the declarations and affidavits and disperse them to the recipients.

One notable company that practices robo-signing was Chase bank. In a credit card lawsuit, Chase bank was found that necessary steps to correct certain errors in their documents were not taken. The fact that Chase bank was caught red-handed in applying questionable practices resulted in the bank halting all credit card lawsuits against consumers as they correct the “underlying internal issues” in document accuracy.

For debtors who are facing credit card lawsuit, this can be both a good thing and a bad thing. For one, because major banks are admitting to have internal issues in document accuracy, the debt claims will be subjected to intense scrutiny first before a summons is handed out. On the other hand, some judges don’t want to hear the argument and will move the credit card cases through the court thus, debtors will not have a fair chance of arguing their cases.

The issue also prompted the Federal Trade Commission and Department of Justice to take action against junk debt buyers who do not try to verify the debt they claimed was owed to them by consumers. The FTC and DOJ is working out a framework which will guarantee that debt claims will remain factual and find a balance between fair and accurate processes for both debtors and creditors.

Of course, it is important that debtors who are facing credit card lawsuit should demand verified, accurate information or seek the help of an attorney to tackle the issue. Although major banks are claiming that the practice of rob-signing is not widespread, the fact that supporting documents for debt claims are not produced readily points to the opposite. In most cases, old, charged-off accounts have been sold and re-sold so many times that getting the necessary documents that proving the ownership of the debt is not as easy and many delinquent debtors achieved favorable ruling from credit card lawsuit just by demanding the right documents to prove whether or not the debt is theirs.

So the next time you receive a summons or quite possibly, looking at a credit card lawsuit, make sure to check your own credit report to see if the figures are in line with the ones indicated on the summons and request proof that you own the debt from the creditor.

Facts To Consider When Dealing With Credit Card Lawsuit

Thousands of people across the country are facing creditcard lawsuit for unpaid debts that this actually turned into a billion dollar business for junk debt buyers, who make a living by purchasing old, credit card accounts for pennies on the dollar. In a somewhat twisted way, opportunist are actually benefiting from hapless debtors who are struggling to make ends meet as it is. Junk debt buyers have a reputation for applying questionable collection practices just to get what they want.

The good news is, delinquent debtors don’t have to put up with this kind of scheme at all. Federal and state laws are in place to protect consumer rights from predatory debt collection companies who harass people with credit card lawsuit via threatening phone calls and letters. If you are looking at a possible credit card lawsuit, there are certain factors you have to consider first prior to taking action.

One, apart from answering the summons, you need to request a debt validation letter to the junk debt buyer. This will not only help buy you time to cook up a plan, the other party will also have a hard time pinning the debt under your name. The fact is, junk debt buyers do not have access to original documents that could effectively identify the owner of the debt. Instead, they rely on old credit card statements and your personal information, which do not hold much weight in court at all.

Second, check your state’s policy about the statute of limitations. The statute of limitations refers to the period by which the creditor or the junk debt buyer can file a lawsuit against the debtor. The days are numbered from the late date that the debtor made a payment. Because statute of limitations vary greatly from state to state, you will need to check your own state’s statute for more information. If the account is out of statute, your debtor cannot pursue your case in court.

If you do not have any means to repay the credit card debt at all, you can opt to file a bankruptcy claim. This is best for those who are being hounded by several creditors and have no way to hire a defense attorney. That said, filing for bankruptcy has its own disadvantages including causing a negative impact on your credit rating so make sure you exhaust all efforts looking for other ways to deal with the credit card lawsuit before you consider this option. 

Credit Card Lawsuit: How To Defeat Summary Judgment

Essentially, Summary judgment will be ruled if the facts presented during the course of the card lawsuit proceedings are undisputed, and accurate. Many credit card companies who are pressing charges against delinquent debtors are hoping for a summary judgment because it's basically a quick way to get the money they wanted with very little cost. On the other hand, if the debtor fights against and actually defeated summary judgment, the creditor and their plaintiff are in for a long haul.

So is it possible? How does one defeat summary judgment when facing a credit card lawsuit? The short answer is yes, it is quite possible to work your way out of a summary judgment. It starts with filing a motion to strike the evidence that the plaintiff attached to his motion to declare that there are no facts to dispute. If done successfully, the court will rule that the facts are in dispute so they will not award a summary judgment in favor of the plaintiff.

However, you could be blindsided by a Motion to Strike by the plaintiff is you failed to present notarized affidavits that support the evidence attached to the Summary judgment motion. In general, a custodian or an assistant custodian of reports will notarize the affidavits, attesting to the plaintiff's business practices and methods. The custodian will also personally check the debtor's own business records and account, stating the card debt amount.

Also, note that every state has its own notarization law so make sure you check your state's notarization law. In addition, you must check the guidelines for credit card lawsuit cases, which were filed in your state but its affidavit was notarized in a different state. If the out of State notarization does not comply with your state's own requirements, you need to strike the affidavit by a motion to strike.

When faced with a credit card lawsuit , it is critical to know more about the laws and guidelines mandated in your state before you file any documents in court, even an Answer to the summons. In some states, defendants are not required to send an Answer to the credit card lawsuit summons so to avoid any confusion or mistakes that could otherwise, derail your chances of winning the credit card lawsuit , do your own research! In addition, you can search for credit debt lawyers who can give you an idea how to deal with your creditor and quite possibly, how to negotiate a better deal with them.

Credit Card Lawsuit Defense: Facts About Proof of Judgment

Many delinquent debtors who are currently facing credit card lawsuit might come across the term "judgment proof". What does this mean and how to determine whether or not you are judgement proof?

Being judgment proof either refers to debtors who do not own any assets which could be attached or seize by creditors to satisfy a debt. If your creditor files a credit card lawsuit against you and they won the case, they do not automatically get the right to take your money straight from your bank account and liquidate your properties to get their money.

Of course, know that just because you are judgment proof does not mean you cannot be sued at all. There are cases wherein the creditors will receive a judgment just so they can collect from delinquent debtors in the future, because judgments will last for years and they may be renewed. So if you are judgment proof and your creditor discovers this, they could either drop the credit card lawsuit or wait it out until you are able to repay the debt. In addition, even if say, they are willing to wait and ends up just renewing the judgment, the statute of limitations in your state could prevent your creditor from collection the money.

How do you know if you are judgment proof or not? The best way to do it is to consult with a bankruptcy lawyer in your local area. An attorney can check your situation and can review whether or not your property is safe from preying creditors. An attorney can also advise you on what steps to take in order to keep charge of your own financial situation.

If ever you are judgment proof, you need to send a Cease and Desist letter to your credit card company, explaining your situation. Once they received the Cease and Desist letter, they cannot contact you except to acknowledge the letter you sent or to let you know that they will file a credit card lawsuit against you.

Most creditors feel it is not worth pursuing cases wherein the debtors are judgment proof. Credit card lawsuits are very expensive, lengthy and tedious with very little profit so rather than waste time, effort and resources hiring an attorney and continue pressing charges, creditors just move on to other debtors. This does not mean that one is guaranteed to avoid a credit card lawsuit once he or she is judgment proof but majority of creditors do case any collection efforts once the debtors are proven judgment proof.

Credit Card Lawsuit: Collection Agencies Modus Operandi

The number of people who are faced with credit card lawsuit is in all time high simply because it's big business as far as collection agencies and junk debt buyers are concerned. These days, buying and selling charged off account is a billion dollar industry where junk debt buyers and collection agencies pay pennies on the dollar. Imagine how much they stand to profit from a single account.

Once a debtor defaults on payments, the original creditor will try to collect the debt several times, which may come in a form of a letter or two or a couple of phone calls. Most creditors will not attempt to go all out in terms of collecting the debt because this is just a small part of their business. So, if the debt is not paid they will sell the account over to a collection agency or a junk debt buyer for pennies on the dollar.

Once a collection agency obtained the account, agents will hound the delinquent debtors vigorously but this will only be for a short period of time. If they can't collect debt, they will re-sell the account for even fewer pennies on the dollar. This time, the new account owner will apply illegal debt collection practices, which include harassment via phone calls to you, your neighbors, your family and even your employer as well as threatening letters. From here, the debt collector could either re-sell the account or file a credit card lawsuit.

An account, which has been resold multiple times, has its own advantages. Since only limited information about the account is being sold and not the entire account, that leaves very little basis of the credit card lawsuit. Debt collectors cannot approach the court with just your name, address, account number, and old credit card statements. They will need hard evidence and most of the time, they do not have access to these evidences.

Therefore, a credit card lawsuit will be futile. Junk debt buyers and collection agencies are better off striking a deal with a delinquent debtor rather than pursue the case all the way to court.

If there's any silver lining to dealing with credit card lawsuit , it's that it's very easy to defend yourself, you won't even need a lawyer most of the time. The fact is, many collection agents are hoping they get no response out of the summons they send out and they send out a lot in one go.

They expect an easy victory through a default judgment and get the money they were after. As long as you know how to defend yourself against a credit card lawsuit , there is no way for your collectors to win.

Credit Card Lawsuit Defense: Facts About Collection Laws

The Fair Credit And Fair Debt Collection Practices Act provide protection against abusive debt collectors against dirty collection tactics including outright threats, intimidation, incessant phone calls, and other techniques formerly used to satisfy a debt. With this act, mean-spirited debt collectors can now be held responsible for their nasty collection efforts.

One example is the usual practice of debt collectors of asking a debtor's bank account or card details when collecting debts. A few years ago, consumers have no choice but to give the information but thanks to FDCPA, they can now refuse to take phone calls. When a debt agent gets in touch with you, you are given a month to question the debt as well as make the collector prove that you own the debt. During this time, they are forced to stop all collection efforts and present documented proof that the unpaid balance is indeed, yours. If they cannot present proof of the debt's ownership, the lack of evidence can e used for credit card lawsuit defense.

In addition, collection laws now prevent collectors from interacting with the debtors. Collection agencies are prohibited from using vulgarities, threats, and obscenities to repay a debt. They can no longer berate, belittle, or humiliate a person into paying the debt. They can no longer give empty threats to people around you once you are not able to repay the debt and they cannot threaten you that they will file a credit card lawsuit or take your income unless they obtain the right to legally do these. These laws make great credit card lawsuit defense against obnoxious collection agencies and agents.

Debtors no longer need be a victim of incessant phone calls by a collection agency. By filing a Cease and Desist letter, you will stop these unwanted phone calls. Just make sure you send the order by certified mail with no return receipt requested. If they ignored this, they are in violation of the mandated credit card collection laws in your state.

In the past, collection agencies and collection agents will not hesitate contacting a debtor's family, neighbors, friends and even employers in an effort to humiliate the debtor into paying the debt. Today, they can no longer contact any person close to you and instead, they are only allowed to send correspondence from a third party mediator to get in touch with you. They cannot discuss your situation with them. In addition, they are also prohibited from any contacts with your friends, family colleagues, neighbors or employer unless the mediator specifically asks a call back.

It's important to learn the right credit card lawsuit defense before and after a lawsuit. You cannot simply allow debt collectors into providing all the information they need because you have the right to pursue them legally if they violate the law. So don't be a victim. Learn more about consumer act, your local laws, and other credit card lawsuit defenses that will help your cause.

Credit Card Lawsuit: Getting A Judgment Against You

If you are sued for unpaid credit card debt and you somehow lost the case, what are the things you need to do in order to satisfy the debt in question? The obvious answer is pay what is due, but if you can't pay the debt, what do you do?

Apart from paying the due amount, you also need to know the state which the judgement is ruled who is your creditor is,what belongings you own, etc.

One of the most common ways to stop a judgment is filing for bankruptcy. When you file for bankruptcy you will get protection that blocks most judgments or encourage creditors to lower the debt cost. However, there are serious and lasting financial consequences to filing a bankruptcy so seek the advice of an attorney first to learn more about bankruptcy protection. Note that you cannot fake a bankruptcy claim because pacers are used by many creditors to determine a person's bankruptcy status.

If say, you're not ready for bankruptcy, another way of working your way out of a judgement is to wait for the creditor to collect their judgments. Most creditors will not bother collection the judgments or wait too long and judgments would reach expiration unless they review them so you can wait and see if your creditor will take action from the judgment they received.

If you lost the case by default because the summons was not sent to you properly, you just might get the court to set aside the ruling but the chances are very slim and when it is set aside, your creditor can just file for a credit card lawsuit again. This time, you cannot claim the summons was not served properly.

Note that when it comes to enforcing judgment and settling the credit card lawsuit, your assets play an integral part of your creditor's pursuit of the debt. If they know that you don't have any form of assets and monthly income that are non-exempt, recovering the debt is very slim. However, if they know that you have several assets and income, you can expect your creditor to apply all collection efforts in the book.

For less complications, you can always try to negotiate a settlement with your credit card company. Many creditors are willing to forgive as much as 50% of the credit debt so sitting down and working on a deal should be considered.

There are times when even if the creditor is aware that the debtor have cannot repay the debt or when the judgment is nearing its expiration, they will refuse to accept the deal because of a grudge against the debtor. If such is the case, it would be best to consult with a judgment broker who can choose the enforcer to buy the judgment from the creditor. This is so you can save money while also fulfilling the judgment. This might be a long shot and usually this will only work if your card company is not a big company or is just a single person.

A broker can help you in various cases. One example is when you try to contact the creditor politely and the card company's own emotions prevented them from settling the case. An enforcer of the judgement may offer to purchase the judgement cheaply. In some cases, the same card company that refuses to settle with you might say yes to the one willing to buy the judgement. If the broker settled a deal, they could purchase the judgment and may satisfy your judgment at a lower rate. If the broker earns a profit, you could be saving a lot of money.

On the other hand, collection agencies and big credit card companies and banks tend to refuse third parties trying to buy their judgment so if you want to reach a settlement; you need to reach out to them directly or through their collection attorney or agency.

It's important to get a stamp of satisfaction from the court who ruled the judgment when you repay it. This court-stamped satisfaction of a judgment is a process that will require the documents to be calculated, filled out, and finally, notarized and stamped by the court where the credit card lawsuit judgment was ruled.

After you satisfied the judgment, you can file for a certified copy of the document along with a county recorder or send a copy of the judgment satisfaction to a credit reporting agency or to anyone that needs proof that you paid the amount due.

Learn how you can handle answering a summons on your own and WIN your case! This groundbreaking eDocument will help you end all debt claims and fight credit card lawsuit ! Visit http://answeringasummons.com for more information.

Validation Letter: Temporary Solution When Being Sued By A Credit Card Company

Thousands of Americans are embroiled in credit card debts that the number of people being sued by a credit card company is on the rise. Unfortunately, many people think that they can get away with not paying their credit card debt when their accounts were marked as a charged off on their credit report.

The fact is, junk debt buyers, collection agencies and of course, the original creditor would still want to collect even a portion of the debt and to do this, they will have to file a card lawsuit. In doing so, they could get legal authorization to garnish wages, empty bank accounts or worst, debtors' properties may actually be seized once they are being sued by a credit card company.

The good news is, you can do something about it. You can prevent your creditor from getting a-hold of your money or property when being sued by your credit card company and even thwart possible lawsuits. How?

One effective but temporary solution to get more time to determine the next step is to request a validation letter when being sued by your credit card company. By requesting a debt validation letter when being sued by a credit card company, the other party will be required to send you a signed document that verifies the card debt in dispute. If they send this document, all collection efforts go to a grinding halt. From there, you will gain enough time to determine what you can do next to handle the credit card lawsuit.

You can either go ahead and study how to defend yourself in court or by hiring a lawyer or you can negotiate a deal with your creditor. To negotiate a deal with your creditor, you will have to contact the person with the authority to handle such accounts, and not discuss the issue with a random customer service representative.

Once you get a-hold of the right person, discuss the issue, and let him or her know that you are serious about paying the debt. If you are going through a difficult time, like a loved one being sick, you've gone through accidents, disasters or any events that could've led to depleted funds, let your creditor know and he or she just might give you a break. They could either drop the credit card lawsuit altogether or they just might agree to get only a portion of the debt with a sensible payment plan to boot.

If things work out in your favor, make sure you get everything in writing! Don't expect your creditor to do exactly what they promised because let's be honest, some will say just about anything just as long as they get the money. Get everything in writing, have the representative of the company, and yourself sign the agreement.