If you have credit card debt and a lawsuit has not been filed, do not feel you are alone. Many Americans are battling with credit card debt and there is something you can do about it.
Do not settle with the credit card company. The fear is you could be paying off the wrong creditor. Who are you talking to on the phone? How do you really know they are with American Express? How do you know your debt was not sold?
Remember: Paying off the wrong creditor is not a defense to paying off the correct creditor.
What can you do?
We highly recommend forcing the creditor to VALIDATE the debt. The validation process is a cost effective way to put the burden of proof on the creditor.
We send a validation letter to the bank and then analyze the documents that are returned by the bank. The bank is required to send us certain documents. If they cannot supply these documents, they have a problem on their hands.
Once the financial institution files a lawsuit, you may have waived some of your rights including, but not limited to, the validation process. This does not preclude you from being able to win the lawsuit. In most cases, the credit card company suing you has a very weak case. Of course, we cannot say that with certainty without first evaluating your case. We do offer a free consultation where we can advise you on whether you should try to settle or defend yourself in the lawsuit. In most cases, defending yourself in the lawsuit is the best course of action.
Some possible causes of actions:
- Breach of contract – The bank is unlikely to have a copy of the contract and we are seeing this cause of action less and less.
- Unjust enrichment – The bank will attempt to say you used the card so you should have to pay for it. You cannot just walk into the courtroom and state, “I didn’t do it”. Instead, by providing you with affirmative defenses and exercising your rights under the rules of evidence, this cause of action is unlikely to stick.
The truth of the matter is if a creditor is attempting to collect from you, we can help end those phone calls and turn the table on the creditor. If they choose to sue, we can help provide you with an effective defense.