Answering a Summons

Credit card companies may press charges against delinquent debtors whose accounts are left unpaid for a specific period of time. If you are facing a credit card lawsuit, you will be notified via a summons and complaint sent to your last known address. A summons is a request that you have to appear in court, served by the sheriff or an appointed person who has no involvement to the case. The summons may also be sent via certified mail return receipt requested.

When the summons and complaint is received, you are given a specific period of time to file your response. In most state, defendants are given 20 days to file their answer to the summons. If you don’t file the answer to the summons in time, the judge has no choice but to rule a judgment against you. This is why it is critical to send an answer on time. Being sued by a credit card company may seem daunting but if you know the process, you can get away with a favorable decision without hiring an attorney. 

If you received a summons and complaint for unpaid credit card balance and you have no idea how to draft an appropriate response to a summons, here’s a quick, step by step guide on how to respond to a summons the right way:

Step 1: Read The Summons Thoroughly

When being sued, you will receive two types of documents, the summons and complaint. From the summons, you will know pertinent information relating to the lawsuit while the complaint will list down the allegations made against you. The best place to start is to check the case caption which is listed at the top of the complaint.

Step 2: Know How Much Time You Need To File an Answer

Filing an answer to the summons is important. Civil lawsuits require the defendant (that’s you) to file an answer within a specified period. The specified period to file the answer will depend on the nature of the case and the jurisdiction. Check the summons how much time you have to file an answer or contact your local court clerk and ask for the specified period to do so. In most state, respondents are given 20 days to file an answer. Approach the court clerk to ask for the Notice of Appearance document. Fill out the form, sign it and return the document to the court clerk. This has to be done whether or not you really owe the debt.

Step 3: Determine The Debt’s Age

If you know you owe the debt, check its age. Each state has an imposed period where creditors may pursue delinquent debtors legally, known as the Statute of Limitations (SoL). To check your state’s SoL, you may either call your Attorney General’s office or check online.

Step 4: How To Respond To a Summons for Credit Card Lawsuit

Once you find out the nature of the lawsuit filed against you, you should start drafting an answer to the summons and complaint. From the Notice of Intention to Defend, fill this section with a response. Your response should include a detailed explanation as to why you are not responsible for the debt. The reasons for not being legally responsible for a debt may range from simple mistaken identity or the debt is out of statutes. Filling up this section confirms that you will appear in court and are expected to present your defenses for the allegations.

After completing the response, cut the Notice of Intention to Defend and file it to court. In turn, the court will notify the opposing party of your intention to defend the claim. Usually, the opposing party will think twice about going further with the case at this point.

Most creditors or debt collection companies assume that debtors don’t know a thing about defending themselves in court so they expect an easy victory. By answering the summons and showing your willingness to defend yourself in court, most creditors would rather drop the case instead of spending more money on legal costs. If they see that they will have to wrestle a judgment from you, they will stop pursuing the case altogether. So make sure you know the basics of drafting a response to a summons and check local court rules for more information.

Credit Card Debt Basics - On Debt Responsibility II

Receiving a collection call for a deceased family member’s unpaid balance does throw someone off the loop. The first thing that comes to mind when receiving a debt claim after recently losing a family member is if you are really responsible for it or not. Unfortunately, some debt collectors are not above using dirty tricks, including misrepresenting, to collect the debt. Don't be too quick t repay the debt. You need to know who is really responsible for paying a deceased family member's debt. We’ve compiled tips on how you can resolve the issue:

Know The Rules

Each state has its own rules and guidelines when it comes to resolving debt claims therefore, you need to conduct your own research about the issue and if possible, consult an attorney. Know that there are times when the responsibility of a deceased’s family member will be turned to you. One instance is if you are a co-signer or if you shared a joint account with the deceased. However, if your spouse has a separate account, you are not responsible for the debt, even if the debt collector is claiming otherwise.

Same goes for the children of the deceased. If they were not listed as joint owner of the account or co-signed the debt, they cannot be held responsible for said debt.

Call the Executor of The Estate

Usually, the executor of the estate should be the responsible party for a deceased’s debt dispute. Direct the debt collector to the executor of the estate and let them iron out the issue. Instruct the debt collector that you are not the right person to call and if they tried calling you again, they are crossing the line. A Cease and Desist letter is needed to stop them from further collection efforts.

Familiarize Yourself with the Fair Debt Collection Practices Act or FDCPA

It’s pathetic how some debt collection companies will try to cash out over grieving families. The good news is, there’s no reason why you should be a part of a growing statistics. You can do something about unlawful, abusive and totally inappropriate collection efforts by filing a complaint. If you are receiving incessant collection calls or debt claim notices despite sending a Cease and Desist letter via certified mail with return receipt requested, talk to your attorney and file a complaint.

This will not help you get back at abusive collection companies; you can also collect a fine if you proved that they did engage in unsavory collection practices. To make things easier, do keep a good record of correspondence or conversation between you and your creditor. You can present this as evidence once the proceedings start.

Credit Card Debt Basics: On Debt Responsibility

It’s not surprising that many debt collection companies will try to take advantage of grieving families to cash in on a deceased’s account. In fact, some do call up a grieving family member and would try to use the deceased’s name to make their kin pay for the outstanding balance. Under the FDCPA, debt collectors are not allowed to use deceitful collection efforts to satisfy a debt.

Unless, you are the debt’s co-signer or shared a joint account with the deceased, you do not have responsibility over the debt at all, even if you were the spouse. The same can be said for the deceased’s offspring, they are not responsible for the debt after death.

Settling a Deceased’s Debts

The executor of the estate is the one responsible for all dealings, including outstanding balances, of the deceased. This is why the debt collector should contact the executor of the estate to collect, not the immediate family of the deceased. Unfortunately, some debt collectors do prey on unsuspecting family members so make sure you don’t fall for this tactic and start familiarizing yourself with the Fair Debt Collection Practices Act or FDCPA. Below is an outline of steps you can take to avoid being taken advantage of debt collectors:

One: A Cease and Desist letter has to be sent via certified mail with return receipt requested for persistent collectors who kept calling you or sending you notices about the deceased’s outstanding debts.

Two: Create a good record of all conversations with the debt collector, especially if they are trying to make you feel guilty or use unsavory language just to collect the debt. You can consult an attorney and file a complaint for violating the Fair Debt Collection Practices Act.

Three: Make the executor if the estate request validation of the debt before you hand over the payment! Don’t just pay for anyone’s debt just because you were told by a debt collector about it. Remember, everyone can call someone up and claim that they owe him or her money. It is within your rights to obtain verified information about the debt before resolving the problem.

Always keep the above tips in mind if you are dealing with a debt collector from a dead relative’s due debts. Remember; don’t be too quick to hand over your hard earned cash just because someone claims that a debt has been left unpaid by a deceased family member. Check if the debt is valid, within statutes and make the executor of the estate demand a debt validation.

Making Debt Collectors Play Nice

It used to be that debt collectors had the upper hand when it comes to dealing with debtors. These days, the table has turned, giving thousands of debtors a fighting chance against abusive debt collectors. If you are dealing with a debt collector and you have little clue on how to make them play nice, we compiled helpful tips below:

Demand Debt Details

In the past, debt collectors would use just about every scare tactic in the book to make debtors pay for debts that they may or may not owe. When the Fair Debt Collection Practices Act was passed in Congress, debtors can now demand for information pertaining to the debt. For instance, if you are unsure that the debt is indeed yours, you can dispute the debt claims within 30 days. In turn, the debt collection company has to resent evidence that the debt is indeed yours. The debt collection company is not allowed to collect the debt during this time.

Limit Communication/Correspondence

Gone are the days when a collection agent can call you at work demanding for money or scaring you into paying by threatening to discuss your debt with your employer. By law, they are prohibited from calling you at work or at certain hours during the day and night. They cannot repeatedly call you to threaten, harass or use harsh language to get you to pay. They are not allowed to discuss debt information with other people, including your relatives. If you hired an attorney, they are only allowed to discuss the debt through your attorney.

Cease and Desist Letter

Debt collectors are infamous for their persistence. Put a stop to all collection efforts by sending a Cease and Desist letter via certified mail with return receipt requested. Let them know that you no longer wish to be in communication with them and would rather communicate via mail and nothing else. Most collection agents will stop once they received a cease and desist letter and will only hear from them once they file a credit card lawsuit. However, for others that did not stop, you can file a complaint and receive a fine for it.

The Fair Debt Collection Practices Act helps you deal with abusive debt collectors and prevent them from ever harassing you again so make sure you learn more about local and state rules in your area before you start discussing the debt you allegedly owe with a debt collectors.

A Thing Of The Past: Unfair Debt Collection

Evidence of deceptive, abusive and gross misrepresentation by debt collectors companies have been found in abundance with years of unsavory behaviors on record. As such, Fair Debt Collection Practices Act or FDCPA was passed by the Congress in 1977 to minimize the escalating cases of abusive and unfair debt collection practices in the country.

One of the most common concerns regards unpaid debts include the number of attempts collection agents can call regarding the owed money. It can be quite a nerve-wracking experience to be on the receiving end of these collection calls and letters. Under the FDCPA, debtors can set boundaries as far as collection efforts are concerned. Collection companies can no longer call debtors at the dead of the night or extremely early in the morning to collect. They can no longer call them from work without permission. They can no longer call at any time they want. If they do, debtors can file a complaint and collect a fine. However, debtors need to provide documented evidence proving that abusive debt collectors or junk debt buyers have violated their rights.

Very old, out of statutes debts can no longer be collected. This means collection companies can no longer threaten debtors with a credit card lawsuit or file a credit card lawsuit for out of statutes debts, for that matter. Even if the debt is within statutes, collection companies cannot simply threaten debtors with a credit card lawsuit without any follow through.

It is important to check the statutes of limitations as well as the local court laws in your state if you are dealing with debt claims. The fact is, nothing is preventing debt collectors from making false representation on debt statuses at all. This is why it is important for debtors to take the liberty of knowing more about consumer rights laws and how to deal with abusive collection companies. This is why you should never pay a debt unless you are sure that all information given to you are verified. Anyone can send collection letters and phone calls but if these debt claims don’t come with all information that pins down the ownership of the debts to you, you have to dispute the claim.

If you are disputing a debt, make sure you have all the evidences you need to prove your own claim. You will need to have documented proof if you want your claims to hold weight in court.

Of Statutes Of Limitations And Debt Collection Agencies

Although debt collectors are known for their aggressive and often, illegal collection practices, consumers now have the upper hand with the Fair Debt Collection Practices Act or FDCPA enacted by the congress. Unfortunately, many debtors remain clueless when it comes to their rights as well as the concept of time-barred debts. This leaves many debtors vulnerable to debt collection harassment and is bullied into paying for debts when they don't really need to.

Now, every debt can be collected until a specific date. Known as the statute of limitation, the length of time until the debt validity expiration will vary from state to state. Because each state's statute of limitations will differ it is up to the debtor to determine how much time he or she have until the debt's validity expires. If your debt is already out of statutes and you still get collection calls from debt collecting agencies, you need to know the limits imposed on such situation.

For example, although the debt is out of statutes, the debt collection agency can still make attempts to obtain payment. Attempting to collect out of statute debts is by no means, an illegal practice. However, debt collector's efforts to do so is now limited. For instance, they can no longer threaten to file a credit card lawsuit. It's common for many collectors to use a credit card lawsuit as way to scare delinquent debtors into paying the debt. On out of statute debts, they cannot file a credit card lawsuit even if they followed through with the threats because the debt is no longer valid for collection. If you have old, unpaid credit card debts that are on the verge of reaching out of statutes status, do not repay the debt because this will just restart the statutes clock!

Some debt collection companies go at great lengths to collect debts, including re-aging old, out of statutes credit accounts to buy them more time for collecting the money by filing a credit card lawsuit. This means if a debt is beyond the statutes of limitation in your state, they can fool you into paying by starting the statutes clock to file a credit card lawsuit.

If you suspect that your debt has been re-aged, you can request a credit report from major credit reporting bureaus and examine the information on the report. If things do not add up to the information released by the debt collector pertaining to the old debt, take note of it, point it out and report the agency for re-aging your debt account. Do note that in some states, re-aging charged off accounts is legal as long as the debtors acknowledge that they own the debt.

Fair Credit Reporting: What You Need To Know Now

Debt collectors have always been linked to harassment, threats and use of profane language to extract debt payments, especially old debts, despite laws enforced to protect consumer rights. Out of statutes debts will be sold and resold and often, those who purchased the accounts will not hesitate to step on a few toes just to make a successful collection.

Unfortunately, unpaid debts, old and new, will cause a negative impact on your credit. Worse, some debt collectors will even try to falsely report negative remarks on major credit reporting bureaus without verifying the identities of the debtor or without waiting for the debtor to dispute the alleged debt.

This isn’t exactly a new collection tactic; many debtors will even try to report out of statutes debts in a bid to cause negative effects on debtors’ credit report. This is a major concern for many because employers and even landlords usually checks the credit of an applicant and if they see bad marks on one’s credit, their application will be rejected.

Now, the good news is, there are actually laws in place which gives consumer more rights to their own credit reports. For example, you can dispute a false claim that has been made on your credit report, in writing. You will also need to get in touch with the credit reporting agency to have them investigate the discrepancy on your report and report the result of the investigation to you. If the statement made by the debt collection company is indeed false, the statement will be removed from your report.

This means it is important to request a copy of your credit report, especially if you have old, charged off credit card accounts with unpaid debts.

Under the Fair Credit Reporting Act or FCRA, everyone is entitled a free copy of credit report from the three major credit reporting bureaus once a year. To request a copy of your credit report, go to a credit reporting bureau's website and request for one. The Fair Credit Reporting Act or FCRA give debtors the power to control their credit history and dispute false debt claims that could cause negative effects on credit reports.

Once you receive your free credit report, you can check outstanding balances that need to be repaid or, if you have an existing credit dispute with a debt collector agency or creditor, you can check if the debt in question is within or beyond statutes.

Collection Agency Laws: What Debtors Need To Know

Despite laws enforced to prevent consumer rights violation, it's not unusual for debt collection agencies to cross the line and talk their way into extracting money from debtors. Unfortunately, not all debtors are aware of the Fair Debt Collection Practices Act or FDCPA. To shed light on consumer rights laws, read

One: The Fair Debt Collection Practices Act was passed specifically for consumer debt. This means people with business debt are exempted from this act. Debtors who have business debts do not have the same rights as those with consumer debts.

Two: Debt collection agents are prohibited from calling debtors very early in the morning or beyond 9 in the evening. While the FDCPA did not specify how many times a collector can call up debtors, they are prohibited from threatening or harassing debtors into paying the alleged debt.

Three: Under the FDCPA, debt collectors cannot threaten debtors jail time for unpaid credit card debts. They cannot issue a warrant for arrest because only a court of law can send such warrants. Any debtors who threaten debtors with jail time or arrest warrants are violating the FDCPA.

Four: Collection agencies can file credit card lawsuit against delinquent debtors. However, they cannot use a credit card lawsuit as a threat unless they already acted on it. Debtors need to check if the age of the debt is out of statute. If such is the case, debt collectors can no longer pursue the debt via credit card lawsuit as it is already time barred. Debt collectors who plan to file credit card lawsuit should only.

Five: Statute of limitation varies from state to state. Usually, the statutes will range from three to ten years. It's best to check your state's statute of limitations for credit card debt to be on the safe side. Once a debt is out of statute, debt collectors can no longer file a credit card lawsuit nor can they collect the money in any other means.

Six: You can stop the credit harassment. If a collection agent is calling you on your home number or in your office, spewing threats and using profane language, or attempt to discuss the debt with a third party, they are violating your rights as a consumer and you can take legal action against such harassment.

Knowing your rights is the first step towards dealing with debt collectors, abusive or otherwise. Most debt collectors assume debtors have no idea about consumer rights and continuously use threats as a way of extracting debt repayments. So know your rights and stand up against abusive debt collection practices.

Credit Collection Laws And You

The Fair Debt Collection Practices Act and the Fair Credit Act has helped thousands of debtors free themselves from collection agents and junk debt buyers who act like complete Neanderthals when collecting debts. Junk debt buyers, collection agencies and sometimes, even original creditors are known mostly for their unforgiving, intimidating and often illegal collection tactics to extract money from debtors. Since laws have been enforced, consumer rights are protected against mean-spirited credit collectors, which is why it is important to educate yourself with credit collection laws to minimize the chances of being harassed by creditors or collection agencies.

One of the most common ways debt collectors obtain information from debtors is asking for their bank or credit card information. In the past, debtors have no other choice but to divulge such sensitive information from creditors or collection agencies. However, things have changed, laws are enacted and junk debt collectors and collection agencies can no longer make a person give his or her credit card and bank information.

Once contacted by a debt collector, debtors are given 30 days to dispute the debt and make the debt collector prove the ownership of the debt in dispute. The bottom line is, you don’t need to pay anything just because someone claims you owe them money. If they can’t produce proof that you owe them money, they can’t collect the money nor can they file a credit card lawsuit.

Apart from proving the debt’s ownership, collectors can no longer threaten, use profanity, vulgarities or use demeaning language to scare debtors into paying the debt. They can no longer humiliate you or talk to third parties about your financial problems. They can no longer discuss confidential debt information to other people. They can no longer threaten to garnish your wages, put lien on your properties when they haven’t gained legal authority to do so. They can only obtain a portion of your paycheck if they win the credit card lawsuit they filed otherwise, no such threats are allowed under the FDCPA.

If debt collectors continuously call you at the dead of the night or early in the morning, you can send them a Cease and Desist letter, information them that you do not wish to be contacted via phone calls and will respond only in writing. In response, the debt collector can only notify you about their next step, usually filing a credit card lawsuit, in writing. If they refuse to comply, they are violating the mandates of collection laws and will be brought to justice.

Debt Collectors: Rising Complaints For Abusive Collection Tactics

According to the Federal Trade Commission, gathered by the Consumer Financial Protection Bureau, debt collectors have the highest number of consumer complaints.  Both the Consumer Financial Protection Bureau and the Federal Trade Commission gathered all data and found that debt collectors routinely violate the FDCPA for their aggressive and unsavory behavior when collecting debts.

Now the question becomes, why are they rude when they collect credit card debt? Why do they cross the line routinely just to collect money from debtors? Below are some of the possible reasons why:

Commissions: Most debt collectors earn money each time they successfully collect the credit card debt. This is their prime motivation, if they cannot collect, they won’t get paid! This makes you wonder just how much they are getting the way they aggressively seek out debtors. From the looks of it, a lot of money is at stake.

Shady Employees: Did you know that some collection agencies actually hire convicted felons to collect credit card debt? Worse, others are caught red handed running scams, like making other people pay alleged debts they don’t really owe. These collection agencies have been routinely caught by the Attorney’s General and have paid hefty fines to bail themselves out of trouble. Unfortunately, the Attorney’s General does not have enough manpower to totally eliminate these scoundrels and some continuously cross the line, violating the rights of debtors.

Ignorant Debtors: One of the most likely reasons why collection agencies even try their luck at bullying debtors is they know most of them do not even know anything about consumer rights laws. They go crazy scaring people out of their wits for unpaid credit card debt and getting more than the actual debt owed. If consumers do not know anything about the law, they cannot make debt collectors accountable for their actions. Debt collectors are always on the lookout for new ways to squeeze every last cent out of debtors so it’s important to educate yourself about the FDCPA and learn what you can do to stop abusive collection efforts.

All these factors play a role in encouraging debt collectors to obtain money through dubious and often illegal collection efforts. The important thing to remember is that there are lows enforced to control these unsavory strategies and you can bet that if you show your debt collectors that you know a thing or two about the FDCPA, they will think twice before they try to bully you into paying.

Avoiding A Credit Card Lawsuit: Negotiating With A Tough Creditor

With the looming economy, inflation and hundreds of people dealing with various financial problems, it's not surprising that many are also facing credit card lawsuit for unpaid debt. The good news is, there is a way to avoid such problems, like meeting up with your creditor and striking a deal. However, these agreements do not always result in favorable repayment option for debtors.

If you want to negotiate with your creditor and avoid a potential credit card lawsuit, you need to contact your creditor immediately; this can be done by phoning them as personal meet ups might be difficult to pull. Note that it's much easier to negotiate with the original creditor rather than just the collection agency who purchased your account from your old card company. Usually, creditors or collection agents would notify you whether or not they will file a credit card lawsuit against you. Whichever the case, negotiating a deal would most likely require you to pay a onetime lump sum.

The deal will boil down to the payment amount. Of course, the creditor has a drawn out amount they expect to be paid. If they disagree with your offer, you can go ahead and offer a payment plan that fits your budget. Whatever the agreed amount is, make sure you can afford to pay it each month. To avoid a potential credit card lawsuit, you have to be proactive and contact your creditor as soon as you can. This not only helps protect your creditor score from being impacted negatively, and prevents the creditor from selling your account to a collection agency.

It helps to be diligent in terms of responding to your creditor's proposed payments. When it comes to card debts, repayment is always better than an uncollected account. Some creditors might try to modify the offer while others will refuse to accept the payment plan you propose. If the creditor refused your offer, ask them what acceptable amount they can accept. If say, both parties has agreed on a payment plan, always put everything in writing. Additionally, a receipt will be given, stating the debt has already been paid in full.

Putting everything in writing is important because you cannot count on your creditor to keep their word every time! A written payment is a viable proof of your good faith to the judge, in case, things turned for the worst and your creditor filed a credit card lawsuit in the end.

Other Illegal Debt Collection Practices To Watch Out For

Credit debt collectors are known for their abusive and in some cases, downright illegal collection practices. In this article, we will discuss some of the other illegal debt collection practices you should watch out for.

Unpermitted Calls To Debtors’ Offices

Sometimes, when creditors or debt collectors are running out of ideas how to hound debtors, they go the extra mile to ensure the debtors will get in trouble for their unpaid debt, even going as far as calling their work office despite not having permission to call the place. Know that under the FDCPA, creditors and debt collectors cannot contact the debtor at work of the employer does not permit such calls. To stop a creditor from calling you from your office, tell your creditor to stop calling you from that number and follow up in writing. If the creditor continuously call you despite warnings, it’s best to press charges.

Divulging Confidential Debt Information To Third Parties

Under the FDCPA, debt collectors cannot contact other people and divulge sensitive information about the debtor, including the debt information, to another person. This rule covers families, friends, relatives, employers, colleagues, neighbors, etc. Debt collectors cannot discuss a person’s debt unless that person is a co-signer, spouse or the debtor’s attorney! If a creditor is found to have discussed a debt with another person other than the specified personalities, talk with a consumer debt attorney and file a complaint. Make sure to take a record or evidence of the incident.

Failure to Validate The Debt

Creditors should present documented evidence that will validate the owed money by the debtor when the latter sent a debt validation letter. Creditors are given 30 days to completely validate the debt and they should stop trying to collect the debt within this period. In addition, if the debt has been reported to major credit reporting agencies, the creditor has to report that the debt is being disputed.

Continuous Collection Efforts Despite Sending A Cease and Desist Letter

If you want to make your creditor stop contacting you, all you need to do is to send a Cease and Desist letter. This will allow your creditor to contact you through written correspondence only and when they do, it’s only to notify you of their next action, which is filing a credit card lawsuit most of the time. That said, do not send a Cease and Desist letter when you know you owe the debt and that you are only doing it just so you can continuously ignore the debt. You leave your creditor no other choice but to file a credit card lawsuit against you.