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sunny07 · Sep 17, 2007, 07:48 PM

Is anyone out there actually won the case defending against credit card debt collector? I've read many posts on this site and have not found any posting regards to winning their case. I just wonder how well the steps that discussed here are working or worked for anybody...

Justice Matters · Sep 17, 2007, 08:09 PM

Our single largest client is a credit counselling agency. If any of the agency's members are sued in the Small Claims Court we defend them - often successfully. However, what we define as a "win" is one where the creditor's interest rate is significantly reduced (ie. From 36% to 6%) and where a payment planned based on the debtor's ability to pay is implemented.

Strictly speaking there is no way for any civil court to deny a creditor their principal (bankruptcy courts being the sole exception) unless there is an accounting error, limitation issue or some type of fraud.

We are aware of cases where the court refused to grant judgment to a creditor due to a debtor's complete inability to pay (eg. A 98 year old woman in a nursing home on a fixed pension). However, such cases are very rare and result from a combination of a judge's compassion and appreciation that there is no reasonable probability of payment on behalf of the debtor. To grant judgment against a perpetual "judgment proof" debtor is an excerise in futility and effectively a waste of court resources.

In Ontario, where we practice, there are several statutes that we rely on that enable the Small Claims Court to impose the aforesaid "winning" conditions. Such similar statutes may not exist in your jurisdiction.

sunny07 · Sep 17, 2007, 08:22 PM

Originally Posted by Justice Matters

Our single largest client is a credit counselling agency. If any of the agency's members are sued in the Small Claims Court we defend them - often successfully. However, what we define as a "win" is one where the creditor's interest rate is significantly reduced (ie. from 36% to 6%) and where a payment planned based on the debtor's ability to pay is implemented.

Strictly speaking there is no way for any civil court to deny a creditor their principal (bankruptcy courts being the sole exception) unless there is an accounting error, limitation issue or some type of fraud.

We are aware of cases where the court refused to grant judgment to a creditor due to a debtor's complete inability to pay (eg. a 98 year old woman in a nursing home on a fixed pension). However, such cases are very rare and result from a combination of a judge's compassion and appreciation that there is no reasonable probability of payment on behalf of the debtor. To grant judgment against a perpetual "judgment proof" debtor is an excerise in futility and effectively a waste of court resources.

In Ontario, where we practice, there are several statutes that we rely on that enable the Small Claims Court to impose the aforesaid "winning" conditions. Such similar statutes may not exist in your jurisdiction.

Good info. But is this true in the states? I read many posts on this site that members are asking for steps to defend their case. I would like to know if anyone has taken these steps in defending themselve and actually have their case dismissed other then SOL.

mr.yet · Sep 18, 2007, 04:19 AM

It's not about winning, if you owe the money than you should pay it. The reason anyone is in court is because the agreement was been broken and one party failed to live up to their part of the deal.

Credit companies, banks, loan co. are protecting their right to collect on a contract someone sign and agreed to.

Now you have to protect your rights as well. In today's world they charge off the loans and sell them to Debt Collectors at a discount price. The Debt Collector is supposed to follow the rules for collecting, but some do not, so you must defend your rights.

If everyone who is in debt would just be honest with the banks, credit card co, etc, most would work with you to pay the debt. It's is when people avoid their obligations and let them fall behind the banks, credit card co. etc, sue or sell off bad debts, to Debt Collectors.

Now before you sign any contract READ IT!, the terms are written in the contract, if you done understand what they stated, ASK QUESTIONS!

It is far easier to pay and be honest, than try to cheat.

That's my opinion!

Yes, I have won in court and I have lost! That is why I don't have Credit Cards. It is too easy to over spend and go beyond you're your means to pay. The best advice I can give to Pay off Credit Cards ,and spend wisely. If you need money go to your banks at get a personal loan, not credit cards.

ScottGem · Sep 18, 2007, 05:50 AM

There have been a few people who have come back and reported that they had their case dismissed. Either because the creditor didn't show or because they couldn't produce proper documentation.

ratchel33 · Sep 19, 2007, 10:38 AM

Originally Posted by sunny07

Is anyone out there actually won the case defending against credit card debt collector? I've read many posts on this site and have not found any posting regards to winning their case. I just wonder how well the steps that discussed here are working or worked for anybody.....

I won, but only on a technicality. The credit card company did not file their response to my court action in time. However, I do not know what this means. No one has been able to tell me if a they can sue again or if it is over. I do know that I have not heard from them in over 4 months.

sunny07 · Sep 19, 2007, 01:42 PM

Originally Posted by ratchel33

I won, but only on a technicality. The credit card company did not file their response to my court action in time. However, I do not know what this means. Noone has been able to tell me if a they can sue again or if it is over. I do know that I have not heard from them in over 4 months.

Did your judge dismissed your case since they did not respond in time?

ratchel33 · Sep 21, 2007, 07:41 AM

It was dismissed, but I'm not sure this would prevent them from suing me again.
Believe me when I tell you that my goal was never to get out of my debt. It's just that my desire to pay them far exceeds my ability to do so. It became a battle when the debt of $1200 turned into $2400 and then froze my checking account dibilitating my ability to feed my children -- literally. (I found they had frozen my account at the walmart checkout.) I was just going to court to ask for leniency, my money back so I could provide for my family and some time.

sunny07 · Sep 21, 2007, 07:14 PM

Originally Posted by ratchel33

It was dismissed, but I'm not sure this would prevent them from suing me again.
Believe me when I tell you that my goal was never to get out of my debt. It's just that my desire to pay them far exceeds my ability to do so. It became a battle when the debt of $1200 turned into $2400 and then froze my checking account dibilitating my ability to feed my children -- literally. (I found they had frozen my account at the walmart checkout.) I was just going to court to ask for leniency, my money back so I could provide for my family and some time.

Once your case is dismissed, they can not sue you again. They did not reponded in time and judge has dismissed the suit. I know it is very stressful to have these debt collector hounding you but if they can not prove it, they loose.

ScottGem · Sep 21, 2007, 08:53 PM

Originally Posted by sunny07

Once your case is dismissed, they can not sue you again. They did not reponded in time and judge has dismissed the suit. I know it is very stressful to have these debt collector hounding you but if they can not prove it, they loose.

That is NOT true! A dismissal is not he same as a jury verdict. There are different types of dismissals. If its dismissed WITH prejudice, then yes, the plaintiff's case has been found to be incorrect and they are considered to be lost. But that doesn't preclude an appeal.

But itf its dismissed WITHOUT prejudice then no adjudication of the facts was made and the plaintiff can refile.