How to Fight a Credit Card Lawsuit

by Allan Henry

When choosing how to fight a credit card lawsuit, there are a few important things to think about. First, is an original creditor or a third party debt collector suing you? Second, did you sign a contract with whoever is suing you? Third, what is your current financial situation? In this article I am going to address all three of these questions.

Understanding who is suing you will determine a large part of your defense strategy. 9 out of 10 times the plaintiff (party suing you) will be the creditor. It is fairly rare to see a third party debt collector take a consumer to court to attempt collection. Creditors will sue only in the event that it becomes their least costly option for collection. If you can keep your bank or creditor from feeling this way, you will rarely if ever get sued.

If a creditor does sue you, you will need to defend yourself using the strategy of requesting documentation that the bank or creditor had money in their possession which they then lent to you. You will be requesting proof that the money that was supposedly loaned to you was in their possession previous to the agreement, as well as a valid, signed and dated contract between you and the bank or creditor.

Often times the bank or creditor will not be able to provide these things for you. By continually requesting these items that prove that the bank or creditor did in fact loan you money that was previously in their possession, you will expose that the bank did not have a valid contractual agreement with you. In most cases this will be enough evidence to support your defense in a motion for summary judgment.

On rare occasions the third party debt collector will sue you. If this happens you will need to proceed differently. Whenever a third party debt collector files a lawsuit, you will need to request valid proof of assignment. For a proof of assignment to be valid it must contain the following: Written agreement from the original creditor stating that the debt has been assigned, or transferred, to the third party debt collector. This statement from the bank must be signed and dated by the bank or original creditor, the third party debt collector, and most importantly the consumer.

Without valid proof of assignment the third party debt collector cannot legally collect on your account. It is rare for a third party debt collector to have a valid proof of assignment. Thus, in these cases you can almost always get the case dismissed.

The second concern to address is whether or not you signed a contract with the plaintiff. If you did sign a contract you will need to request it to be produced in order to make sure that you are only required to adhere to the terms you originally agreed to. If the bank or creditor cannot produce a contract signed and dated by the consumer, it will be much more difficult for the bank or creditor to make a successful case against you.

The final concern is your current financial situation. If you have money to spare your choices will probably be quite different than the consumer who is heavily in debt with nowhere to turn. No matter which case you are in I strongly suggest gathering as much knowledge as possible to increase your chances for a favorable ruling. The best way to get this information quickly is to take the 10-day email mini course offered through this site. This mini course will provide the most powerful resources for you to use immediately.

For more detailed knowledge and help through the entire litigation process, I would strongly recommend reading How To Beat Collectors In Court. It is a comprehensive guide compiled from years of watching and consulting on every type of credit card debt. For any consumer debating what to do and how to fight a credit card lawsuit, it is a must read.