Above The Laws News

Learning how to fight a credit card lawsuit starts with arming yourself with as much information as you can particularly when the plaintiff will file a Request to Admit facts. Remember, just like creating your Answer, you are only given by the court a limited time to answer any questions from the plaintiff and if you did not answer on time, you could lose your case.

If you want to learn how to fight a credit card lawsuit, it is important to note that Interrogatories and Request for Documents are critical during the Discovery phase of the lawsuit. As far as defending yourself goes, the Request to Admit Facts is the most important part of the Discovery phase which is why it is imperative that you answer on time.

What makes this phase intimidating to debtors who do not know how to fight a credit card lawsuit is that junk debt buyers and collection agencies will go all out in this phase. They will conveniently leave the fact that you have only limited time during Discovery and use your state’s court rules to bring a favorable decision to them.

To learn how much time you have to file all necessary documents during the Discovery phase, it is best to review your court rules. Check the Discovery or Request for Admission page. Usually the defendant and the plaintiff are given thirty (30) days to Answer the Request to Admit Facts otherwise, they will be deemed admitted (which your plaintiff is counting on when it’s your turn). The plaintiff is hoping you don’t know how to fight a credit card lawsuit and you are not aware of your state’s local court rules allowable period to answer the allegations.

If you failed to answer on time, your creditor will quickly file a Motion to Deem Admissions! So better get crackin’ and file the documents on time! If you leave out any question, it will be deemed admitted. If you check the questions that your plaintiff arranged for you, you will see that they are making you admit that you own the debt, you own the credit card account, you admit that you made payments and you agreed to sign anything that pertains to the debt so be careful when answering these questions.

Consequently, your creditor also has a limited time to answer your Request to Admit Facts. As soon as you mail your request, the clock starts ticking. If your creditor failed to answer on time, you can file a Motion to Deem Admissions.

So if you do not know how to fight a credit card lawsuit, the answer is obvious, find answers! Check the local court rules and look for any helpful information online. Consult a debt attorney and learn what strategies will work best for your own case. Most importantly, do not ignore the summons! Answering the summons on time is probably the best way to assert that you are well-aware of your rights and you are not afraid to fight creditors off in court.

Unpaid credit card debts are a lawsuit waiting to happen. Save yourself from a lot of headache and learn what you can do to reduce your debt quickly and efficiently.

Check The Statements

Not only should you check your card statement but also your bank statements. The statement shows how much money you owe to your card company while the bank statement shows you where your accounts are. Now, compare these statements with your monthly income, divide a chunk of your salary into portions, in which you need to repay your card company. This is where you will discover if your monthly income is sufficient to cover your debts. In addition, not all records are accurate so always search for errors on your monthly statements as well.

Use Low Interest Cards

If you have multiple cards with varying interest rates, it’s best to check which cards have the lowest interest rates and use them instead of credit cards with higher interest rates. The fact is, cutting off credit cards with a long history of credit could do more harm than good. Instead of cutting them off completely, focus on using lower interest cards and use higher interest cards once in a while.

Use Cash/Debit Cards

Generally, using credit cards is more expensive as opposed to paying cash or using debit cards to make purchases. An average credit card’s APR is around 5% and most card companies require a monthly or annual membership fee. Save more by using cash instead of your cards. You’d be surprised at how much money you can actually save by using your credit cards during emergencies alone.

Create Expenses Plan

Always manage your expenses. By mapping out a daily or monthly budget, you will not only manage your money, you will also discover where you spend your money the most. Of course, planning your expenses is one thing, executing the plan and sticking to it is a different story. If you create a budget, be sure to stick to your budget. Otherwise, your careless spending could be defeating the purpose of creating a budget for manageable debt.

Better financial situation starts with keeping tabs on your expenses and managing your debt effectively. By keeping track of your expenses and card use, you should have no problems making payments on time, each month. This will help avoid any trouble with your creditor that could possibly lead to a credit card lawsuit.

Facing credit card debts is challenging particularly at this time when the economy is at its worst. Unfortunately, some unscrupulous companies are trying to capitalize on this worsening problem, taking advantage of unsuspecting victims who are trying to find card debt relief. Essentially, all credit card debt relief scams offer the same thing, they promise people relief from debt later for payment now.

Several years ago, lump-sum debt settlement was the number one debt relief scam because fly by night companies charges exorbitant fees before their customers even pay their creditors, which is a step back towards better credit management. Thanks to new federal rules, formalized in 2010, it is now illegal to ask for upfront payments for debt settlement services. In this article, we will discuss various scams you should watch out for as you find credit card debt relief programs.

Redemption Certificate or Bond For Discharge of Debt

The Federal Reserve Bank and the Office of the Comptroller of the Currency has identified this credit relief program as a type of “fraud” because this may cause criminal liability to the debtor. So don’t enter into any agreement without reading the contract or seeking the help of an attorney.

Arbitration Awards

Unfortunately, many credit card agreements still feature an arbitration clause in them. This clause states that you and your card company agrees to settle disputes with arbitration, not court action. This means you will be charged hundreds of dollars when you get an arbitration award from a licensed arbitration firm that says you do not owe any money on your account. Anyone who uses this strategy risks having poor defense for any potential court action.

Companies That Purchase Your CC Account and CC Debt

Some credit card agreement indicates that an account may be sold to another entity. However, because credit card debt are unsecured type of loan and being handed to a corporation, card banks will have no choice but to charge it off.

Novation

Novation refers to the substitution of a new contract for an old one or the substitution of a party in contract with the other party. The act of using the card under the new contract is regarded as the holder agreeing to the new terms and conditions. It’s important to check the new terms and conditions as most card company use this type of agreement to trick you into not paying your bills without establishing a legal defense or dispute for doing so.