How should I respond to a breach of contract lawsuit from a credit card company?

Full question:

How to respond to Court for a lawsuit filed against me for breach of contract with a credit card company?

  • Category: Debts and Credit
  • Subcategory: Credit Cards
  • Date:
  • State: Florida

Answer:

If you are served with a complaint for a debt, you must file an answer within the specified time. Failing to do so may result in a default judgment against you. The discovery process allows you to gather information from the opposing party, including business records and written answers to questions.

If the plaintiff wins a judgment and you cannot pay, they may seek a judgment lien, attach assets like bank accounts, or garnish wages. At the hearing, arrive on time and dress appropriately. Bring all relevant documentation, such as receipts and billing statements.

Common defenses against credit card debt collection include the statute of limitations, improper plaintiff or defendant, invalid debt transfer, and violations of the Fair Debt Collection Practices Act. When addressing the court, speak respectfully and clearly, avoiding long-winded explanations or outbursts.

In some cases, you might negotiate a settlement, though this is harder once a lawsuit is filed. Creditors may accept a lesser amount if you are insolvent, as receiving something is better than nothing. Ensure any settlement includes a release so the creditor cannot pursue the full debt later.

According to the Fair Debt Collection Practices Act, debt collectors must provide specific information about the debt within five days of their initial communication. If you dispute the debt in writing within thirty days, the collector must cease collection until they verify the debt (15 USC 1692g).

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

To defend against a credit card lawsuit, first file a timely answer to the complaint to avoid a default judgment. Gather evidence such as billing statements and payment records. Common defenses include disputing the debt's validity, claiming the statute of limitations has expired, or asserting violations of the Fair Debt Collection Practices Act. Attend all court hearings, present your case respectfully, and consider negotiating a settlement if appropriate. Always ensure any settlement agreement includes a release of the debt to prevent future claims.