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.

What To Do When Negotiating Settlement For Debts

Working out a settlement deal with a creditor or a debt collection might sound intimidating but it's actually easy when you know what to expect. Apart from getting a reasonable amount to repay the debt, you can also minimize the damage the debt will cause to your credit report. The good news is, a large majority of collection companies and creditors are willing to take less than the original amount of money owed.

Debtors can either shoot for an installment basis of repayment or pay a lump sum to get rid of the debt completely. Whichever way you chose to repay the debt, it is important to know what you can and hat you cannot do during the negotiation period. Below are some tips you should keep in mind when dealing with a debt collection company or creditor:

Set Your Emotions Aside
Don't let anger, guilt, shame or embarrassment break down communication between you and your creditor. It's best to address the issue calmly and be honest about your financial situation with your creditor. Getting upset or crying will only make communication difficult so set aside whatever emotional issues you have attached with the debt and ask for options instead. Choose the option which suits your current financial situation and settle the debt as soon as you can.

Stop Spending!
If you have mounting credit card debts to think about, the only logical thing to do is to stop using your credit cards and close most of your accounts to stop the accruing interest charges and minimize penalty fees. Once you closed these accounts, try to negotiate for a smaller amount of repayment and set it in an installment basis. Offer as low as 30% of the original debt amount and work from there.

Repair Your Credit
Unpaid debts cause negative impact on one's credit report which is why it is important to repair your credit as soon as you start paying off what you owe. Here's a great tip, ask your creditor or collection company to note that the debt is paid off satisfactorily rather than less than what was due. This might not entirely remove the bad marks but it will improve your credit history that you will be able to apply for bigger loans and mortgages easily in the future.

Keep all the tips above in mind to reach a reasonable settlement. However, if you are not sure about negotiating with your creditor or collection agency on your own, you can always consult an experienced debt collection lawyer to guide you through this ordeal.

Practical Ways To Deal With Unexpected Debt Claims

The slightest misstep in a debt claim could result in costly consequences, which is why it is important to determine how to deal with a debt collector the right way. Under the Fair Debt Collection Practices Act, debtors have a fighting chance against abusive collection agents who are willing to cross the line for a few thousand dollars in credit debt. Below are simple steps on how to handle a debt collection letter from the mail:

Validate the Debt First

You can’t pay for something without verifying whether or not you really do owe money. Unfortunately, many debt collection agencies send collection letters to the wrong address! Under the Fair Debt Collection Practices Act, debtors have the right to ask for debt validation from the collection company. Five days after you first contacted the debt collector, they must present a letter telling you the specifics of the debt’s ownership.

Raise a Dispute

In some cases, collection companies will try to collect out of statutes debts. If the debt is extremely old, it is best to check your state’s Statutes of Limitation on consumer debt. If your debt is out of statutes, the debt collection agency can no longer collect nor can they file a credit card lawsuit. If your debt collector is threatening you with a credit card lawsuit on out an out of statutes debt, you can turn the tables and go after them for crossing the line.

Limit Interaction

Under the FDCPA, you have the right to outline when and how a debt collector can contact you. For example, if you do not want to be phoned at certain hours, you can notify them. If you do not want to be phoned at work, you can inform them and should they persist with collecting the money the way they want at the time they choose, you can file a complaint and go after them. If the collection agent or agency was found to have violated your rights, under the FDCPA, they will have to pay you for damages done for harassment.

In addition, you can stop debt collectors from using threats or foul language to scare you into paying the debt. If you show that you will not tolerate such behavior, they are likely to take the message and back down.

Don’t be fooled into thinking that your debt collector has the upper hand when it comes to debt claims. It is important to know your rights and learn how to protect yourself from unsavory behavior in debt collecting.

Protecting Consumer Rights Under The Fair Debt Collection Practices Act

Debtors are expected to repay the debt they incurred within the given terms of the contract. Unfortunately, a number of debtors got debts so high, they are unable of repay them at all. Creditors have the right to collect the debt, with a few limits, of course. The Fair Debt Collection Practices Act or FDCPA is enacted by the congress to stop abusive debt collectors from applying aggressive collection efforts, including using threats or intimidation to get debtors to pay up.

The FDCPA protects consumer rights related in personal and household debts or consumer debts including phone bills, credit card bills, medical bills, etc. Do note that this Act is only pursuing debt collection and not creditors.

As a debtor, it is important to know what you can do to protect your rights against unscrupulous debt collectors. Below are debt collection efforts that debt collectors cannot apply under the FDCPA:

* Calling at 8 in the morning or 9 in the evening, your local time
* Phoning you at work after telling them not to
* Calling you when you have a legal representation (contact the agency and leave your attorney's contact details for future communications)
* Contacting you through postcard
* Misrepresentation, profane, obscene, language
* Discussing confidential debt information to a third party
* Publishing your personal details
* Reporting inaccurate information to credit bureaus
* Threatening you with a credit card lawsuit
* Threatening you with wage garnishment
* Threatening you with property lien
* Using fake names or claiming to work in a credit bureau

Debtors' Rights:

One: You have the right to arrange a payment plan that both parties can agree to (get this in writing and include the date, the name of the person and the time).

Two: You have the right to request collectors to stop contacting you.

Three: File a complaint to the Federal Trade Commission when a collection agency violated your rights as a consumer.

Four: Take legal action against a collection agency when your rights are violation. You will need to hire an attorney who has extensive experience in fighting debt collectors.

As a consumer, you should be aware of your rights and what you need to do in order to protect yourself against abusive debt collectors. Therefore, educating yourself about the enforced law against unscrupulous collection practices is a must. Start with knowing more about consumer rights laws under the FDCPA as well as local court rules in your state, in case your creditor decides to file a credit card lawsuit for your unpaid balance. This is one of the best ways to fight deb claims without hiring an attorney.

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! 

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