Defaults on credit card accounts are at an all time soaring. A lot of consumers get hold of too many cards and then cannot pay with the amount they owe. If a credit card company files a lawsuit against you after a default, they must provide evidence in certain issues in order to prevail their case.
First of all, they must prove that they are entitled to begin a lawsuit against you. This can be made in several ways. The credit card company must produce some sort of documentation showing that you are of the same mind to establish an account with them. This typically would be by way of a written application that has your signature. If they fail to create such a document, you may have a justification or opposition to their lawsuit.
Today there are so many credit accounts opened over the internet, or via telephone. In those instances, the credit card company should be able to produce an electronic signature page for internet applications, or, they should be able to provide a written documentation that at a minimum summarizes the oral telephone application. If they fail to produce such credentials again, you may have a valid justification or opposition to the lawsuit.
The next thing that the credit company must prove is the terms of the account. This would comprise the terms of payment, the principal charges, the default rate, the interest rate, and the remedies in the event of a default. These terms are typically forwarded to you after you have opened your account, or are included with your written application. Often times, the credit companies are changing the terms of the agreement while your account is active, and they are constrained to send you a copy of the new terms of the agreement. This becomes a crucial factor of a credit collection case. The company must prove which terms apply to which charges on your account. A failure to do so on their part can provide a reasonable defense or objection for you as the customer.
Another thing that the credit card company must prove is that a default occurred, and that they are entitled to charge you. This can often be shown by merely presenting support of a missed payment. If a credit card company cannot provide enough proof of all of the foregoing, then you may have a valid defense to any lawsuit that may be filed against you. Please be sure to discuss with your local attorney regarding the laws of your state, as well as the credit card collection cases.
Want to find out more about debt collection lawsuit, then visit Allan Henry’s site on how to choose the best advice if you are beingBeing Sued by a Credit Card Company.