Credit Card Defense
As the economy becomes worse and consumers begin to become unemployed or get behind on their bills, you can be sure the debt collectors will be thriving in this environment. Debt collections are sure to raise in this bad economic cycle that we are in right now. Of course, what that means for American consumers is more harassing phone calls, letters, and lawsuits by debt collection agencies. Most consumer debt consists primarily of credit card debt. The idea of putting that expensive pair of shoes or purse on the credit card did not seem as burdensome when you had the ability to pay the bill, however, now that the economy is in recession, thousands of consumers now face constant phone calls and letters from debt collectors demanding payment. In some instances, debt collectors and credit card companies will sue a consumer in hopes of obtaining a judgment and collection payment. It is important to remember that even if you are sued by a creditor/debt collector, that you still have rights.
First of all, if you are sued make sure that you file an answer by the date specified by that particular court. Depending on the amount owed, creditors may sue you in district court, county court, or a justice of the peace court. It is important to file an answer and not let a creditor or debt collector obtain a default judgment against you in lawsuit. In fact, many creditors and debt collectors realize that a high percentage of debtors never file an answer in lawsuit. Many creditors or debt collectors business models and profit margins are based upon their expectations of debtors failing to file an answer and contesting the lawsuit. Thus, many debt collectors are unprepared to properly prove-up their cases when a consumer unexpectedly files an answer and obtains adequate legal representation to defend themselves in court. The creditor or debt collector just can not simply come into court and assert that a consumer owes them money, the creditor or debt collector must prove it by a preponderance of the evidence under the law. There are usually several elements that must be proven before a creditor or debt collector can prevail in a lawsuit. Thus, a consumer with proper legal representation will know how to put on an adequate defense in these cases. It is important that a consumer sued by a creditor or debt collector seek legal representation immediately. An attorney defending a consumer in debt collection cases should be familiar with the substantive law and the rules of evidence. A consumer law attorney would be able to assist a consumer in defending him/herself against the creditor or debt collector. For example, a debt collector must show that it has standing to sue (basically debt collector must be able to show it owns the debt), and must be able to prove how much debt is actually owed by a particular consumer. Sometimes, if a debt has been sold to many debt collectors over a period of time, a debt collector that sues a consumer might have trouble proving its case in court. In addition, there may be affirmative defenses that an attorney would assert on behalf of a consumer against a creditor or debt collector, such as statute of limitations. Under Texas law, the statute of limitations for credit card debt is generally four (4) years from the time that an account went past due and the last payment was made to the account, however there are certain exceptions to this general rule. In addition, a debtor might have potential counterclaims against a debt collector for violations of the Federal Debt Collection Practices Act (FDCPA), Texas Collection Practice Act (TCPA), or other causes of action under federal or state law.
A proper defense against a credit or debt collector may result in your case being dismissed. Of course, there may be cases in which a dismissal may not result, but a debtor may still be able to negotiate a more favorable settlement or outcome of the case. Thus, it is generally always in a consumers best interest to seek adequate legal representation and file an answer, if you have been sued by a creditor or debt collector. DO NOT LET A DEFAULT JUDGMENT BE ENTERED AGAINST YOU!!!!
Consumer Law, Credit Card Defense, Debt Collection Practices
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