Credit Card Defense

Have you been sued by a credit card company? A debt buyer or collection agency?

The past several years have seen a significant increase in the number of collection lawsuits filed nationwide. Dallas County and the surrounding counties are certainly seeing their fare share of lawsuits. Many of the lawsuits are being filed by companies who have bought up credit card debt or automobile deficiency claims. These “debt-buyers” file suit in great numbers in justice of the peace courts, county and district courts.

Do not assume just because you have been sued that a judgment will be rendered against you. The filing of a lawsuit is just a document with allegations. The Plaintiff must prove the debt in court before they will be awarded a judgment. That is, unless no response to the lawsuit raising defenses is filed. Often, the debt buyers lack sufficient documentation to substantiate their claims. There are numerous defenses which can be raised. For example, suits must be filed within the statute of limitations to file a suit or the debt is barred from suit. And, as in every lawsuit, the Plaintiff (person filing the suit) always has the burden of proof on all issues.

With regard to automobile deficiency suits, the creditor or debt buyer has burdens of proof associated with the handling of the sale of the repossessed automobile. Many creditors or debt buyers are unable to provide the needed evidence and, if the appropriate defense is raised, will be barred from recovering the deficiency.

Being represented by a Dallas area attorney who is knowledgeable about the burdens of proof, the required documentation and possible defenses can make the difference in the outcome of collection lawsuits. The ups and downs of the economy have left many people unable to keep up with credit card payments and sometimes they get sued for the debt. Do not assume your only options are either to allow judgment to be entered or to file bankruptcy. My practice does not include bankruptcy. I have handled a number of credit card collection cases in Dallas County, and surrounding counties, and obtained favorable outcomes for my clients, including preventing judgments from being rendered, in many cases.

If you have been sued, it is important that you act quickly to hire representation. There are deadlines by which responses must be made in order to defend such lawsuits. Especially, if you have been sued in a Justice of the Peace court, since deadlines are shorter, action should be taken promptly.