How to Get a Credit Card Lawsuit Dismissed

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Finding yourself in a situation where a debt collector is taking you to court, such as being sued by Capital One, can be an intimidating and stressful experience. This scenario is not uncommon, as major creditors like Capital One often take legal action to recover debts.

Understanding your rights and legal options is crucial, especially when facing judgments or threats from a collection agency threatening legal action. Knowing how to navigate these challenges can significantly impact the outcome of your case.

For those seeking additional avenues of relief, exploring credit card debt relief grants may offer a viable solution to mitigate financial burdens, especially for individuals facing undue hardship. Maybe you had some financial setbacks and fell behind on credit card payments years back. Now, out of the blue, you are slammed with a lawsuit demanding payment in full. It's essential to understand when credit card companies might sue over unsecured debts.

It may feel like you have no chance of winning against big banks and powerful debt collectors. But take a deep breath - you have more options than you think. In many cases, through careful preparation and assertive legal tactics, you can get the credit card lawsuit dismissed entirely. This is particularly true in areas like Austin, where credit card lawsuit defense strategies have proven effective for many consumers.

Arm yourself with the knowledge of your rights and take comfort in the fact that creditors must prove their claims. You have more power than you realize. It's worth noting that there's often a minimum amount for which a collector might sue. Let's begin!

If you have an overwhelming amount of debt, skip the article and click here for a free consultation with our debt specialist.

Verify the Debt is Yours

Receiving a summons for debt, which notifies you that you're being sued for credit card debt, can be an incredibly stressful and anxious experience.  Your mind races with questions – do I owe this debt? Who is suing me? Is this some kind of mistake? Before you do anything else, the first step is to verify that the debt belongs to you.

It's surprisingly common for debt collectors to mistakenly target the wrong person when filing a lawsuit. When debts are bought and sold multiple times on the secondary market, errors can creep in. Important information gets lost in translation.

For instance, understanding whether is Texas a debtor state can influence your approach to debt verification and defense, given Texas' unique laws regarding debtor rights and protections. That's why it's crucial to verify that the plaintiff suing you has the right person and is seeking the correct debt amount. Don't just take their word for it – make them prove it.

Here are some steps you can take to validate the debt:

• Review the Original Creditor Name: The complaint should identify the original creditor with which the debt is associated. Do you recognize this credit card company or bank? Make sure it aligns with your records.
• Check the Account Number: Every credit card or loan has a unique identifying account number. Verify that the account number on the complaint matches an account you know you had.
• Compare the Debt Amount: Add up any charges, interest, and fees. While the total may have grown over time, the original balance should be familiar to you. If the amount is completely foreign, it may not be your debt.
• Confirm Your Details: Double-check that your name, current address, Social Security number, and any other personal information is correct on the summons. If any of these details are off, it suggests a case of mistaken identity.
• Request Debt Validation: You have the right under the Fair Debt Collection Practices Act to request debt validation in writing. This forces the collector to provide proof this debt belongs to you. If they can't validate it, they don't have a case.
• Review Your Credit Reports: Mistakes happen, and you could be the victim of identity theft or credit card fraud. Review your credit reports to see if any unknown accounts have been opened in your name.
• Search Past Statements: If you have records of your previous credit card statements and payment history, review them for any clues about the debt in question. This can help jog your memory.

Do not simply take the creditor or the debt collection agency or collector's word that you owe this debt. Make them prove this account and amount are legitimately associated with you. If it's not your debt, you have strong grounds for dismissal.

Check the Statute of Limitations

Once you've verified the debt belongs to you, the next step is to check whether the statute of limitations has expired. This refers to the window of time creditors or debt collectors have to legally pursue you for repayment of a debt by filing a lawsuit. When checking the statute of limitations, consider how long before debt collectors sue. This timeframe can vary by state, and understanding it can provide a strategic advantage in your defense.

The statute of limitations varies by state and type of debt but generally ranges between 3-6 years. The clock starts ticking from the date of your last payment or account activity. You can research your state's statute of limitations for credit card debt specifically. In many states, it is between 3-5 years. For example, if you defaulted on a credit card in 2017, and then moved to Texas, the debt collector would have until 2022 to sue you in Texas civil court, familiarizing yourself with North Carolina debt collection laws can provide strategic advantages.

These laws not only define the statute of limitations but also outline specific debtor protections and collection practices allowed within the state. After the Texas statute of limitations of 4 years passes, the debt collector sues and is considered time-barred. It's worth noting that in cities like San Antonio, credit card lawsuit defense is a common issue, and understanding local laws is crucial.

If the statute of limitations has lapsed on the account in question, you have grounds for dismissal. However, be aware the court will not automatically dismiss a lawsuit over an expired debt. You must assert the statute of limitations as an affirmative defense in your written response. Essentially, you have to point it out and provide evidence that the unpaid debt amount is older than the legal time limits in your state.

You can use items like old account statements, credit reports, and bank records to demonstrate when the last payment was made. If it was longer than the statute of limitations, politely ask the judge to dismiss the case since the debt collector is barred from suing over debts that old.

Checking the statute of limitations should always be one of your first steps when facing a debt collector filing a collections lawsuit. Don't let debt collectors intimidate you into repaying a legally uncollectible debt. Know your rights!

Ensure the Debt Collectors Followed the Law

If you find yourself getting sued by a third-party debt collector, an important step is to ensure they follow the law during the process of trying to collect the debt from you. Debt collectors are required to adhere to strict rules under the Fair Debt Collection Practices Act(FDCPA). This federal law prohibits abusive, deceptive, and unfair practices by all debt collection agencies and collectors.

Ensuring that debt collectors follow the law is paramount. If a collection agency is threatening legal action without adhering to the Fair Debt Collection Practices Act (FDCPA), they may be violating your rights. This oversight can be a significant point in your defense strategy.

Illegal behavior banned by the Fair Debt Collection Practices Act include:

• Harassing you with excessive phone calls, especially after being told to stop.
• Contacting you at inconvenient times or places, like before 8 a.m. or after 9 p.m.
• Discuss your debt with third parties like your friends, family, employer, or coworkers.
• Making threats to sue or have you jailed if you do not pay.
• Using profane language or making false statements about the debt.
• Failing to provide written validation of the debt when requested.

If a debt collector violated any of these FDCPA regulations when contacting you, you have grounds for a counterclaim. Under the law, you can sue the debt collector for up to $1,000 in statutory damages per violation. For instance, if the debt collector called you 10 times in one week after you sent a cease and desist letter, that constitutes 10 violations at $1,000 each. You could potentially sue for $10,000 in statutory damages!

Any evidence you have of FDCPA violations, such as recorded phone calls or written correspondence, can be used to support the dismissal of their lawsuit against you. At a minimum, having proof of illegal debt collection calls and practices gives you leverage to negotiate a favorable settlement. Let the debt collector know you are aware of your rights under federal law. If they cross the line, they may back down rather than risk losing their lawsuit against you.

File for Bankruptcy if Applicable

If you have previously filed for bankruptcy, that provides another potential angle for getting a credit card lawsuit dismissed. When you file for bankruptcy, an automatic stay goes into effect. This immediately stops any other debt collection lawsuits and efforts against debts that are eligible for discharge in your bankruptcy case.

The two most common types of consumer bankruptcy are Chapter 7 and Chapter 13. In both cases, unsecured debts like credit cards, medical bills, and personal loans can be discharged. This means those debts are eliminated and creditors are prohibited from trying to collect on them ever again. Your bankruptcy discharge acts as a permanent injunction.

So if you find yourself getting served papers over a credit card debt that was already discharged in your bankruptcy, that is illegal. Collectors are essentially violating the discharge injunction if they sue you post-bankruptcy for a discharged debt.

Any communication trying to collect on discharged debt, let alone a full-blown lawsuit, is forbidden. Make sure to keep copies of your bankruptcy paperwork and discharge order to prove the debt falls under your bankruptcy protections.

You can ask the judge to dismiss the credit card company's lawsuit since they have no legal standing to sue you over a debt erased by your bankruptcy. Let the judge know that the creditor is violating federal bankruptcy law by bringing this lawsuit against you. This abuse of the legal system may warrant the dismissal of their lawsuit.

Respond Properly and On Time

If you've determined the debt is legitimately yours and there are no other grounds for dismissal, the next crucial step is responding properly and on time.

You cannot simply ignore the summons and complaint sent by the credit card company or debt collector. Doing so means you lose the lawsuit by default. The summons you receive outlines your rights and responsibilities as a defendant in a debt lawsuit.

It provides important information like:

• The court handling the lawsuit
• The plaintiff suing you and the amount they are seeking
• The deadline to submit your response
• Instructions on how to submit an answer

You typically have 20-30 days from the date you are served to file your response, depending on your state's civil procedure rules. This deadline is critical.

If you miss it, the court will automatically rule in favor of the plaintiff without even hearing your side of the story. This results in a default judgment against you.

A default judgment gives the plaintiff permission to aggressively collect through means like garnishing your wages, levying your bank account, or placing liens on your property. Don't let it get to this point because of inaction.

You can submit your response in one of two ways:

1. Hire a Consumer Lawyer - They can handle drafting and filing your answer for you properly. This takes the burden off your plate. Look for lawyers experienced in defending consumer debt collection cases.
2. File Your Response Using Court Forms - If hiring a lawyer is not feasible, your court's website should have instructions and any required forms to help you submit an answer. Make sure to follow all directions closely to avoid procedural errors. You'll likely have to pay a small filing fee unless you obtain a fee waiver due to low income.

Your written response needs to directly address each claim made and admit, deny, or explain your defense to each. Make sure to assert any affirmative defenses like expired debt or identity theft. Evidence helps strengthen your case but is usually not required at this stage.

Responding on time and accurately is critical - it keeps the legal ball in your court. Don't make it easy for the credit card company by ignoring this important step.

Raise Affirmative Defenses

A key part of responding to a credit card lawsuit is raising affirmative defenses in your answer. Affirmative defenses refer to any facts or legal arguments you present to defeat the plaintiff's claim. They provide reasons why you should not be held liable for the debt and the case should be dismissed in your favor.

Some examples of common affirmative defenses in debt collection cases include:

• Identity theft/fraud: You did not authorize the charges or open the credit card account being claimed.
• Statute of limitations expired: The debt is older than the allowed time limits in your state to sue.
• Improper service: You were not properly served notice of the lawsuit according to state laws.
• Debt amount discrepancy: The claimed total debt does not match your records, statements, or understanding.
• Debt previously settled/paid: You already paid, settled, or discharged this debt through other means.
• Lack of documentation: The plaintiff cannot provide adequate proof that you owe the debt or that they have the right to collect.
• Bankruptcy discharge violation: This debt was already eliminated through your bankruptcy but they are suing you anyway.
• FDCPA violations: The debt collector broke federal and state debt collection laws.

The key is to review all the facts of your case and identify any affirmative defenses that apply. The more you can raise, the more pressure it puts on the plaintiff to prove their allegations.

Be sure to include your affirmative defenses in your written answer. Provide any supporting evidence if possible. Raising solid defenses makes it much harder for the credit card company to win the lawsuit against you. Play both offense and defense!

Make the Plaintiff Prove Their Case

A common misconception is that the burden of proof falls on the credit card companies or the defendant in a debt collection lawsuit. In reality, it is the plaintiff that must prove their case. This means the credit card company or debt collector suing you must provide evidence.

Effectively convince the judge that:

• This debt belongs to you
• The amount they claim you owe is accurate
• They have the legal right to collect on this debt

As the defendant, you have no burden to prove anything. The plaintiff chose to bring this lawsuit, so the onus is entirely on them.

Many debt collectors file suits expecting you not to fight back. They anticipate winning easily by default. When you do show up and force them to prove their claims, creditors often stumble.

According to the Federal Trade Commission, debt collectors sometimes cannot even locate the account records, credit card lawsuits, and documents necessary to prove their case. Without this proof, their lawsuit falls apart.

This is especially true when debt buyers purchase defaulted debts for pennies on the dollar, and then attempt to collect without proper documentation. They are essentially gambling you will not call their bluff and challenge them.

But you have power in this situation. Force the plaintiff to provide complete account records, produce the original signed credit agreement, demonstrate how the debt amount was calculated, prove they notified you properly at every stage, etc.

If they can't pony up legitimate proof that you owe this exact debt to them, request that the judge dismiss the lawsuit for lack of evidence. There is a good chance the case gets thrown out if you vigorously hold the plaintiff accountable.

Negotiate a Settlement Offer

Once you have formally responded to the complaint, you open up the possibility of negotiating a settlement offer, a crucial step in settling a debt after summons. This approach is particularly relevant when you've been served with a lawsuit and need to find a resolution that avoids further legal proceedings. 

Settlement simply means agreeing to pay the credit card company or debt collector a lump sum payment that is less than the full amount claimed in the lawsuit. It essentially splits the difference and settles the debt. Why would the plaintiff agree to this? To avoid the time, expense, and uncertainty of proceeding with litigation.

Most creditors just want to recoup something - a reduced payout is better than investing more in legal costs for a case they might lose anyway. Settlements are typically conveyed as "this amount for that." For example, you could offer to pay $3,000 to fully settle a $5,000 credit card lawsuit.

If both parties sign a settlement agreement, the plaintiff dismisses the lawsuit and you pay the lower negotiated figure as satisfaction of the debt. It wipes the slate clean. Negotiating a settlement offer can be a viable option if the lawsuit progresses. It's often in the interest of both parties to avoid prolonged legal battles. An attorney for debt collection can provide valuable assistance in these negotiations, ensuring you reach a fair and reasonable settlement.

Some tips for effectively negotiating a debt settlement:

• Make sure any offers and counteroffers are in writing - verbal promises won't cut it.
• Start low to leave room for back and forth. Creditors often initially ask to settle for 90%+ of the debt.
• Do not make any payments until a written settlement agreement is signed by both parties.
• Get confirmation the lawsuit will be dismissed once you make the one-time settlement payment.
• Request a letter stating the debt has been "paid in full" for credit reporting purposes after paying.

With some savvy negotiating, you could settle hundreds or even thousands of dollars lower than the amount demanded in the credit card lawsuit. That makes settlement an appealing option in many cases.

File a Motion to Dismiss

If you have a strong argument supported by evidence as to why the credit card lawsuit has no merit, you can take an aggressive approach and file a motion to dismiss. A motion to dismiss asserts that even if the facts stated in the complaint are assumed to be true, there are legal grounds requiring the judge to dismiss the lawsuit.

1. Motion to Dismiss for Failure to State a Claim

This argues that the plaintiff's complaint does not establish an enforceable legal claim against you even if all facts presented are true.

For example, you could demonstrate:

• The statute of limitations has expired.
• The debt has already been discharged in bankruptcy.
• The complaint lacks enough detail or facts to support its allegations.

2. Motion to Dismiss for Lack of Subject Matter Jurisdiction

This claims the court itself lacks the legal authority to adjudicate the lawsuit and decide the outcome.

Examples include:

• The court is the wrong venue for this dispute
• The plaintiff lacks standing to sue you over this debt
• The amount is below the minimum for this type of civil claim

The standard for a judge to grant a motion to dismiss is quite high, so you need very strong evidence and legal reasoning. But it can be done in the right circumstances. If successful, filing a motion to dismiss ends the lawsuit immediately with a win in your favor.

The best situation is persuading the plaintiff to simply drop the case voluntarily once they are served with the motion. Even if not granted, a strong motion could push the creditor or collection agency to reconsider whether the juice is worth the squeeze and propose a favorable settlement.

Take Advantage of Arbitration Clauses

If your original credit card agreement contains a binding arbitration clause, you may be able to use this provision to compel arbitration and avoid going to court altogether. Arbitration is essentially a private trial process that takes place outside of the court system. It involves presenting your case to an arbitrator, who acts like a judge and issues a final decision.

Creditors and debt collectors usually dislike arbitration because they have to cover all the fees and costs. This could amount to thousands of dollars if you vigorously contest their claims in arbitration.

Many plaintiffs will immediately dismiss a debt collection agency lawsuit when faced with a motion to compel arbitration from the defendant. It ruins their return on investment and almost guarantees they will spend more in arbitration costs than they could ever recoup from you.

To take advantage of this, first check if your credit card contract includes a valid arbitration provision. If so, you can file a motion along with your answer to the complaint requesting the judge order the case to arbitration.

There is a strong likelihood the creditor will simply drop the lawsuit rather than proceed to expensive arbitration over a questionable debt. Don't hesitate to call their bluff if you have an arbitration clause in your back pocket.

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