Five Common Defenses to a Credit Card Lawsuit include reviewing consent orders, inconsistencies, contract amendments, counterclaims, and payment plans.

1. 5 Common Defenses to a Credit Card Lawsuit
Although no two clients or lawsuits at Florin
Legal are the same, here is a list of 5
common defenses to a credit card lawsuit
filed by original creditors, as opposed to
debt buyer lawsuits. This includes credit
card companies such as American Express,
Capital One Bank, Bank of America, N.A.,
Citibank, N.A., Discover Bank, TD Bank,
and others.
Consent Orders
The consent orders at issue are
agreements between credit card companies
and governmental agencies such as the
Consumer Financial Protection Bureau
(CFPB) and the Federal Deposit Insurance Company (FDIC). These agencies expose
and punish original creditors for alleged violations of various consumer
protection laws ranging from the misrepresentation of contractual terms to the addition
of fees that were not agreed upon by the consumer. As an example, American Express
agreed to immediately cease collection efforts of certain disputed debts until they are
able to provide at a minimum, the consumer agreements and any subsequent
amendments, and documentation evidencing the debt and each transaction or activity
on the debt. (American Express Bank, American Express Centurion Bank)
Inconsistencies
The credit card statements, if available, are the key documents in a credit card
lawsuit. A detailed review of the credit card statements will often uncover wildly varying
interest rates and penalty fees. In defending an original creditor lawsuit, it is important to
reference the inconsistent fees with the applicable contract to ensure the credit card
company was charging the appropriate interest rate, late payment fee, over limit fee,
etc.
Contract Amendments
Credit Card Contract Amendments are closely tied to the inconsistencies listed above.
The Contract or Cardmember Agreement memorializes the agreement between the
parties and contains the terms and conditions of the account. After opening the account,
often times the credit card company will send amendments to the credit card agreement
changing those terms which may include the interest rate, late payment fees, and over
limit fees. Only after reviewing the original agreement and each of the amendments can
you be certain that the balance alleged in the lawsuit appropriately follows the terms
agreed upon between the parties.
Counterclaims
A variety of consumer protection statutes may be used to offset a credit card lawsuit. In
Florida, the Florida Consumer Collection Practices Act (FCCPA) prohibits creditors from
threatening violence, harassing a debtor or their family with frequent collection calls,
using abusive language with the debtor or a family member, as well as other unfair
collection actions. Depending on the nature of the creditor’s action, these violations by
creditors may be used to offset the debt alleged against you or even to recover
damages.
Payment Plans
Arranging a payment plan with the creditor can often be the best solution in defending
an original creditor lawsuit. Most creditors and collection law firms will allow a debtor to
enter into a payment plan which can prevent a judgment from being entered as long as
you continue to make the payments. Depending on a great deal of individualized
circumstances, the terms of the agreement can be negotiated for less than the full
balance alleged, include 0% interest moving forward, waive attorney fees, and extended
over a certain period of time.
Conclusion
As stated in the introduction, no two collection lawsuits and personal financial situations
are the same. This is just a list of 5 Common Defenses to a Credit Card Lawsuit filed by
an original creditor. In addition to reviewing consent orders, inconsistencies, contract
amendments, counterclaims, and payment plans, Florin Legal takes the time review
your individual financial considerations and work to provide a tailored defense to the
lawsuit at issue while also considering other financial obligations and debts. If served
with a credit card lawsuit by an original creditor, please call Tampa Credit Card Defense
Attorney Scott Florin at Florin Legal, P.A. at (813)449-4287 or request a free
consultation.