Credit Card Litigation in South Florida

While default judgments are easy to get, it’s much harder for collection agencies to win when you stand up to them in court. They often don’t have the proof needed to secure a judgment, so you can finally move past this stressful point in your life. Contact us today for a free consultation. Then, your lawyer can formulate a defense to help you fight back in court.

Credit Card Lawsuit Defenses

Your South Florida credit card litigation lawyer will develop a legal strategy for you. Common defenses include:

Improper service of the complaint or summons
Statute of limitations
Violation of the Fair Debt Collection Practices Act
Lack of Standing
Fraudulent charges
Mistaken identity
Debt discharged in bankruptcy
Debt paid

Fair Debt Collection Practices Act And Credit Card Litigation

Your South Florida credit card litigation lawyer will evaluate your case to see if the creditor violated the Fair Debt Collection Practices Act (FDCPA). The act has several provisions to ensure fair debt collection practices. For instance, it states that debt collectors cannot make threats of harm or violence, use profane language, call at unreasonable hours, or call repeatedly. Collectors also cannot state that you’re going to get arrested or go to jail if you don’t pay your debt.

If the collector has violated the FDCPA, you can then file a lawsuit to collect up to $1,000 in damages, along with attorney’s fees. Also, your attorney can use the FDCPA violation as a bargaining tool to negotiate a settlement. If you think that a debt collector has violated the act, collect any evidence and speak to a lawyer.

Filing For Bankruptcy After A Lawsuit Is Filed

If you owe the debt and are concerned about a judgment against you, you can file for bankruptcy after getting served. While many people think that bankruptcy is no longer an option, you can file to stop all collection activity and discharge the debt. Your South Florida credit card litigation lawyer can discuss Chapter 7 and Chapter 13 bankruptcy to see if you want to move forward.

Keep in mind that you might have to liquidate assets if you file for Chapter 7 bankruptcy. On the other hand, you can keep your assets if you file for Chapter 13 but might have to make affordable monthly payments to pay the debt. Your attorney will help you evaluate both options so you can move forward with the one that makes the most sense for you.

Lack Of Standing

Third-party collection agencies often initiate lawsuits on unpaid debt. They purchase debt from the original creditor, and when they don’t receive payment, they sue. In many cases, South Florida credit card litigation lawyers can prove a lack of standing in these cases. The third-party collection agency has to show that it purchased the debt from another agency and must have all the documentation regarding the debt. The more companies the debt passes through, the harder it is to provide all the documentation. Remember, the burden of proof is on the creditor, and if the company cannot prove that the debt is valid, you can win in court.

Statute Of Limitations For Credit Card Debt

The statute of limitations for credit card debt is five years. The clock starts ticking with the first missed payment but restarts with each new payment. For example, assume that you haven’t paid your credit card bill for four years, and then you sent a payment. Instead of having one year left on the statute of limitations, it will reset to five years. If the statute of limitations has passed, consult with a South Florida credit card litigation lawyer before making payments.

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