Credit Card Defense

A Third-Party Debt Collector is any bill collector who was not an original party to the transaction giving rise to the debt. A prime example of this situation occurs when an unknown bill collector is contacting you (or suing you) based on a credit card  that you believe was "charged off" and closed. It has become regular practice for credit card companies to "charge off" an account when the payments have stopped coming in. The right to collect the debt associated with the account prior to "charge off" is then bundled and sold to Third-Party Debt Collectors at a steeply discounted rate. The Third-Party Debt Collectors use a business model based predominantly on the idea that if the debt is known to the consumer, then the consumer will not defend the law suit or collection effort. Third-Party Debt Collectors can typically settle your account for less than the original balance.

Unfortunately, most people assume that since they recognize the credit card as the source of the debt there are no defenses. THIS IS NOT TRUE. Before a Third-Party Debt Collector has the right to a judgment against you, the Third-Party Debt Collector must prove that they are the proper party to enforce the debt. In the court system this is called standing. Various case law and rules of evidence require a documentation of the transfer of the collection rights.  Additionally, the debt that the Third-Party Debt Collector attempts to collect may be considered ZOMBIE DEBT (discussed below).

As with most litigation timing is everything. Even when there were valid defenses available to consumers, once judgment has been entered it will be enforceable in Florida for a term of 20 years. Having an attorney experienced in debt defense involved in the litigation early can save thousands. Even when a complete defense is not available, having an experienced attorney in your corner can assist you in reaching a possible reduced settlement. Keller Legal is eager to help.