Disputing credit card debt collection in court

Credit card debt collection efforts are increasingly being rejected by courts when disputed.

We all know that credit cards issuers often make mistakes and it is very hard to dispute them successfully, partly because their records are lousy. In court, however, this lack of good records can work to your advantage. According to the NY Times, one judge, in Brooklyn, says that “…roughly 90 percent of the credit card lawsuits [he sees] are flawed and can’t prove the person owes the debt.” Judges are beginning to throw these flawed collection efforts out of court.

One reason credit card companies have been able to get away with this behavior is that 95% of people being sued don’t bother to show up and contest the debt. This results in a summary judgement which allows the credit card company to garnish your wages or freeze your bank accounts in order to get its money.

In order to win your case and avoid garnishing of your wages or freezing of your bank accounts, you have to show up in court when you are summoned. If you can’t afford a lawyer, bring your own records, and tell the judge why you dispute the debt. Maybe they did not record all your payments; or their late fees were incorrect and excessive; or maybe there were charges that you dispute. Whatever it is, tell the judge. If they do not have good records for your account (and they probably don’t), they will not be able to prove you owe the debt. Have your day in court and there is a good chance you could win.

Comments are closed.