Defending Against a Credit Card Debt Collection Lawsuit: A Practical Guide for Non-Lawyers

Thomas Fox, J.D.

A step-by-step process for verifying, investigating, and defending a lawsuit effectively.

I. Introduction: Understanding the Debt Collection Lawsuit Process

Purpose of This Guide
- Who this guide is for
- What this guide will help you do
What Happens When You Are Sued for a Credit Card Debt?
- The typical process of a debt collection lawsuit
- What the plaintiff (debt collector) must prove
- Your rights and options as the defendant
Common Pitfalls to Avoid in Debt Collection Lawsuits
- Default judgments
- Admitting liability unintentionally
- Making partial payments that restart the statute of limitations
- Failing to challenge weak or missing evidence

Checking for Fraud: Is This Lawsuit Real or a Scam?
- How scammers impersonate courts and collectors
- How to verify lawsuit authenticity with the court clerk
- Signs of a fraudulent or deceptive lawsuit notice
Understanding Your Legal Deadlines
- The deadline to respond to a lawsuit (varies by state)
- What happens if you miss the deadline (default judgment risk)
- Requesting more time to respond (when applicable)
Determining Whether a Written Answer is Required
- General civil court vs. small claims court procedures
- State-specific variations in court rules

Step 1: Identifying the Plaintiff (Who is Suing You?)
- Is the plaintiff the original creditor or a debt buyer?
- Common debt buyers and their legal tactics
- How to verify the plaintiff’s corporate status and legal authority
Step 2: Verifying the Debt Collector’s Legitimacy
- Checking state registration and licensing requirements
- Looking up the plaintiff and their attorney in Secretary of State records
- Checking for past violations with the Consumer Financial Protection Bureau (CFPB) and state consumer agencies
Step 3: Checking the Debt Collector’s Legal Right to Sue (Standing)
- What is "legal standing," and why does it matter?
- How debts are bought and sold (chain of title issues)
- Common problems with debt ownership documentation
Step 4: Validating the Debt (Does This Debt Actually Exist?)
- Sending a Debt Validation Letter under the Fair Debt Collection Practices Act (FDCPA)
- How debt collectors often fail to prove debt validity
- Errors in debt amounts, interest charges, and fees

How to Draft and File a Formal Answer
- The structure of an Answer (admissions, denials, affirmative defenses)
- Common affirmative defenses in debt lawsuits
- What happens if you don’t file an Answer
Common Legal Defenses Against Debt Collection Lawsuits
- Statute of Limitations Defense (Is the debt too old to be collected?)
- Lack of Standing (Can they prove they own the debt?)
- Failure to Provide Sufficient Evidence (Does the plaintiff have the necessary documents?)
- Improper Service of Process (Were you properly served the lawsuit?)
- Debt Discharged in Bankruptcy
When and How to File a Motion to Dismiss
- Situations where a motion to dismiss is appropriate
- How to draft and file the motion
- Possible court rulings on dismissal motions
What If You Have No Defense? Negotiation and Settlement Options
- When to consider negotiating a debt settlement
- What to ask for in a settlement agreement
- How to avoid restarting the statute of limitations

Understanding Discovery in a Debt Collection Lawsuit
- What is discovery, and how does it work?
- Key discovery tools:
  - Requests for Production of Documents (forcing the plaintiff to show proof)
  - Interrogatories (written questions for the plaintiff)
  - Requests for Admissions (forcing the plaintiff to admit or deny key facts)
How to Use Discovery to Expose Weaknesses in the Plaintiff’s Case
- What to request in discovery (account agreements, chain of title, billing statements)
- Common missing documents that can lead to case dismissal
- How debt buyers often fail to meet the burden of proof
How to Respond to Discovery Requests from the Plaintiff
- What to do if the plaintiff sends you discovery questions
- How to avoid admitting liability in discovery responses
- Objecting to improper or overbroad discovery requests

How to Prepare for a Court Hearing or Trial
- Understanding court procedures and expectations
- How to organize your defense and present evidence
- Tips for responding to the plaintiff’s arguments
Cross-Examining Debt Collectors in Court
- Questions to ask a debt buyer’s witness
- Exposing weaknesses in their documentation
- Challenging hearsay evidence and improper affidavits
What Happens If You Lose? Post-Judgment Options
- How to challenge an unfair judgment (appeals, motions to vacate)
- Understanding wage garnishment and bank levies
- Bankruptcy as a last resort option

State-Specific Resources and Legal Aid Contacts
- Links to Secretary of State databases
- List of state attorney general consumer protection offices
Sample Forms and Templates
- Debt validation request letter
- Sample Answer to a debt collection lawsuit
- Sample Motion to Dismiss template
Recommended Further Reading
- Books and websites on consumer debt defense
- Relevant laws: Fair Debt Collection Practices Act (FDCPA), Fair Credit Reporting Act (FCRA), and state consumer laws