Industrial
Strength Representation
|
About our Texas credit
card defense
practice:
Below are some commonly asked questions about credit card defense
suits. Please contact us if you have more
questions, or would just like to talk about your case. You can also visit our blog for more frequently asked questions about credit card defense.
A credit
card company has put my account into collections. Can they sue me
wihtout my knowing it?
Not exactly. If you are sued, then by law you have to be given notice.
You have
the right to tell your side of the story, either to a judge or a jury.
Credit card companies win many cases against individuals simply because
the individuals fail to protect themselves. However, if you avoid
service, the credit card company may be able to notify you by leaving a
copy of the notice on your door.
I received notice of a
lawsuit. What happens next?
If you receive notice of a lawsuit, then you have to answer the suit
within the specific time period (the time depends on the court.) These
time periods are typically very short. If you
fail to answer the suit within the appropriate time period, you may
lose
the case (this is cause a default.) It becomes much more expensive to
reverse a default judgment, so timeing is the key. Once you answered
the suit, the
"discovery" portion of the case begins. During this phase, either side
can ask questions of the other side regarding the case.
I received notice of a
lawsuit. What happens if I ignore it?
If
you
fail to answer the suit within the appropriate time period, you lose
the case (this is called a default.) You cannot go back in time, and you
may lose valid defenses against the debt. This is a VERY bad
idea. You should answer the lawsuit and provide a defense.
The amount the credit card
is suing for is different from the amount I think I owe. What can I
do?
Most defendants think that they owe the credit card company somthing,
and attempt to make montly payments. The problem is that the
credit card company (or the collection agency) may not have accurate
information, may have included additional fees or costs which you may
or may not owe, or may include amounts barred by the statute of
limitations. You should have an attorney review the most recent
statement you have, copies of the demand letters and any other
correspondence or written instruments before attempting to settle the
debt.
I am being sued by a
company for credit card debt, but it is not the credit card company.
What is going on?
A credit card company may sell your debt to a collection agency. If
done properly, and within a specific time limit, they have "standing"
(the legal ability) to sue you for the debt. Under Texas law, as a
defendant, you are entitled to know that the collection agency suing
you has standing to sue you over the debt. If the
collector is different from the original credit card company, you are
entitled to see the chain of ownership that establishes whether the
debt collector owns the right to sue on the debt. Further, the
collection agency may not have followed the appropriate procedures to
obtain the debt in the first place. If they fail to follow these
procedures then they may not be able to sue you and you may have a
valid defense to the claim. Furhter, you need to be sure that you are
obligated on the debt. Just because they say you owe the debt doesn't
mean that they necessarily have the legal right to collect the debt.
How may a debt collector contact you?
A
collector may contact you in person, by mail, telephone, telegram, or
fax. However, a debt collector must not do such at unreasonable times,
such as before 8:00 a.m. or after 9:00 p.m., (unless you agree.) If a
collector is contacting you at unreasonable times, or making
unreasonable threats, then you must make absolutely sure that you
document every time they called, the date, and with whom you spoke.
Also take detailed notes of the conversation.
Can a debt collection agency contact my work?
A
debt collector also may not contact you at work if the collector knows
that your employer disapproves of such contacts. You will need to
notify the collector that you do not wish to be contacted at work. You
should notify them in writing, via certified mail, return receipt
requested. Keep a copy of the notice letter you send them.
Can I stop a debt collector from contacting me?
You
can stop a debt collector from contacting you by writing a certified
letter to the collector telling them to stop. Also, if you hire a
lawyer, the collector will instead contact your lawyer. This only stops
the phone calls. The collection agency can still sue you.
I was contacted about a debt that I don't owe. What can I do?
A
collector on a consumer (nonbusiness) debt must give you infomraiton
about the debt, and a chance to dispute it. You may dispute the debt
within thirty days. The dispute must be in writing, and should be
mailed certified, return receipt requested. Make sure you keep a copy.
If the collector has proof of the debt, they may contact you about it
again.
I've done all that and the collection agency is still harrassing me. What can I do?
It
is imperative that you document everything you can about the
communications--the date and time the collectors called, with whom they
spoke, what they said, etc. Keep a dairy or log by the phone. Save any
messages that they leave on your machine. Their conduct may violate the
Texas Debt Collection Practices Act or the Federal Fair Debt Collection
Practices Act. You should seek counsel to prosecute such offenses. You
can also file a complaint with the Texas Office of Consumer Credit
Commissioner (OCCC) by clicking here.
If you have a problem that you do not see listed here, please feel free
to contact our law firm online,
or call us at (214) 696-0021 (click to call). You can also visit our blog for more frequently asked questions about credit card defense.
Click here to return to our law firm home page.
Click here to contact our law firm in Dallas, Texas.
Click here to visit our legal blog for more frequently asked questions about credit card law.
|
Copyright
(c) 2008, David L. Leon, P.C., Dallas Business Attorneys.
The Texas lawyer responsible for this site is David L. Leon.
Primary office in Dallas, Texas.
Matters may be worked on jointly or
referred. Please our disclaimer before
contacting our firm.
Contact with our firm alone does not create an attorney client
relationship.
Not specialized by the Texas Board of Legal Specialization.
090320 /
|
