Credit Card Lawsuit: What To Do When Sued By Your Creditor

Credit Card Lawsuit: What To Do When Sued By Your Creditor

When debtors are served with a summons for unpaid credit card debt, most are left to wonder whether filing for bankruptcy will help their cause. However, before you go and file for bankruptcy to avoid the lawsuit, remember that the burden of proof rests with your creditor. This means that as a plaintiff, the creditors are obligated to prove that the debtors owe the debts in question before pursuing the credit card lawsuit.

When a credit card company files a lawsuit against a debtor, they need to present proof that:

  • The credit card account is owned by the debtor through a signed agreement
  • The debtor has agreed to the terms of the account including paying the principal charges, default rates, interest charge and others
  • To prove that a default action has occurred

The creditor has the responsibility to present solid proof that the debtor has either physically or digitally signed a document that authorizes a replacement account and if they failed to provide any evidence of such thing taking place, the case will collapse. The creditor needs to prove that the debtor not only agreed to the terms of the card account, but also that the creditor did not, in any way, amended the terms throughout the loan, which might nullify the agreement. In addition, the card company needs to state clearly the possibility of terms amended on the contract and send the new terms of agreement to the debtor once enforced.

Finally, the card company should provide evidence that the forfeiture of the terms have occurred. Payment default happens when a debtor did not pay his or her financial obligation to a credit company as denoted on the signed contract. If a debtor has not paid any payment on the scheduled date, then the creditor needs to provide proof of the missed payment to the court. This is something you need to watch out for, if ever you choose to defend yourself against credit card lawsuit Pro Se. You need to make sure that the plaintiff does not have entitlement to the case, particularly from the three factors presented in bullet form above.

If you received a summons from your creditor, don’t panic. There are ways to settle the matter in and out of court. You can either defend yourself in court or find a way to settle the dispute peacefully.

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