The Woodlands Credit Card Defense Attorneys

Perhaps more so in today’s economy than in times past have credit card companies sued debtors who are in default. If you have tried to reduce your interest rate or work out a balance reduction with your credit card company, you have undoubtedly encountered stiff resistance. Not until you are severely delinquent will the creditor even talk seriously to you about changes in your account. This can be quite frustrating. Our Houston Credit Card Defense Attorneys and our Harris County Credit Repair Attorneys can negotiate with creditors, assisting you in the settlement of your debt and defending you against suits on open accounts (credit card and unsecured-debt suits). 

Oftentimes, people cannot make headway with their creditors and simply give up. What ensues is a full collection assault. That is, you will receive collection telephone calls and mail – a lot of mail and phone calls. There are ways to stop the onslaught of collection communications. However, that is a whole different article.

Sometimes, the creditor will employ a third party to collect the debt. Other times the creditor will sell the debt outright in bundles much like mortgages are sold on the secondary market. The debt buyer “steps into the shoes” of the original creditor and assumes all rights and obligations created by virtue of the contractual relationship established between the consumer and the original creditor, like having the right to sue to recover the outstanding debt. It is a common occurrence for a third-party debt buyer to sue the debtor in state court to recover the debt along with attorney fees and costs as allowed by Texas law. Texas law requires the suit to be brought in the debtor’s county of residence, or where the contract was signed. In most cases, there will be no “signed contract” associated with a consumer credit card account. Therefore, the proper venue for suit will be the debtor’s county of residence.

A law suit against a debtor is started by the creditor or “plaintiff” filing a petition with the court. The petition is then delivered to the debtor or “defendant” by a private process server or a constable or sheriff. Once delivered to the defendant, the time clock begins to run on the period for answering the suit. A defendant must answer the lawsuit or risk a default judgment. In small claims and justice courts, the answer requirements are relaxed to include oral answers. However, if the suit is in a district or county court, a written answer should be filed. Once the answer is filed, the plaintiff cannot get a default judgment, even if the answer was filed late.

After the answer has been filed, the parties typically engage in information gathering, or “discovery.” The discovery process in these types of cases includes formal requests for documents, requests that questions be answered under oath, that certain propositions be admitted or denied and that basic information be exchanged like the identity of persons who will testify at trial and the method of calculating damages and the amount. There are time frames associated Discovery also includes the right to take depositions, usually of the defendant and anyone listed as a person with knowledge of relevant facts. Depositions are expensive and not necessary in all instances. Care should be given when deciding to depose a witness or party to ensure there will be no waste of a party’s assets.

Sometime during the discovery process, the parties may decide to mediate in an effort to settle the case. Depending on the local rules, a court may order the parties to mediate prior to trial or by another date certain. Mediation is the process whereby the parties attempt to settle the case through a neutral third party, oftentimes a retired judge or an attorney with a lot of experience trying cases. The mediation is structured much like the car buying process without the neutral third party. In essence, the defendant (or the buyer) wants to pay as little as possible while the plaintiff (the seller) wants to get as much as possible. Usually, the parties will meet somewhere between. It has been said that when the parties settle at mediation, everyone walks away disappointed. That is, the defendant will believe he paid too much and the plaintiff will believe that she accepted too little.

If the parties reach settlement, either with or without mediation, the lawsuit is over. Once the defendant pays the plaintiff, the plaintiff will dismiss the lawsuit. If the parties cannot reach settlement prior to trial, then the case is tried to a verdict.    

If you have been sued by a credit card company, do not simply put the lawsuit papers in a drawer and forget about it. It will be almost certain that you will get a judgment against you for an amount chosen by the creditor. The better route is to seek counsel from a credit card defense attorney at Garg & Associates via telephone at 281-362-2865.  We have three offices to serve you (two offices in the Houston area and one office in Downtown Long Beach, CA).