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  1. #1

    Default Sued for Credit Card Debt and Legal Fees

    My question involves collection proceedings in the State of:My question involves collection proceedings in the State of: Virginia.

    I have a summons for a court date this month. I'm being sued by my credit union regarding a unpaid Visa credit card. The debt has not been sold. The credit union has retained an attorney to sue me. My credit card debt is 18K. The attorney's fees are additional $4500 + $75.00 court cost. With the summons they have also attached an affidavit, old credit card statement, transaction printout of 10 charges with redacted account number. I have verified that the person who has signed the affidavit still works at the credit union. I also also verified that the notary public who stamped the affidavit is in good standing.

    I was mailed the summons. I have not responded. I will show up in court and ask for a continuance. This may give me time enough to see if I can fight this. Can you give me any suggestions? Also, I'm thinking about asking for an additional 3 months. Is that ok? Does that seem unreasonable? When I called the court, I was told that the other side has to agree to the date. If not, then it's up to the judge. This is Virginia and things are pretty conservative. Any suggestions on how to ask for more time?

    I'm also concerned about the affidavit. There is verbiage in the affidavit that states that not only due I have to pay the 18K debt and $4500.00 lawyers fees and $74.00 court cost but I will also have to pay a 18% interest rate until paid in full. Is this legal?

    Thanks for all of your assistance.

    -Jen
    Virginia

  2. #2
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    Default Re: Sued for Credit Card Debt and Legal Fees

    You need to file a timely answer to the complaint, along with any affirmative defenses you wish to assert. Unless and until the court actually schedules a hearing, there's nothing to adjourn.

    If you go to court and simply say "I need three additional months to prepare", you can expect your motion to be denied. You need to provide an actual basis for requesting an adjournment, and an actual reason why you cannot prepare within the time frame defined by the court in its scheduling order.

    If you agreed to pay 18% interest on your debt, then it's reasonable for the plaintiff to ask that you be charged the interest you agreed to pay.

  3. #3

    Default Re: Sued for Credit Card Debt and Legal Fees

    Quote Quoting Mr. Knowitall
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    You need to file a timely answer to the complaint, along with any affirmative defenses you wish to assert. Unless and until the court actually schedules a hearing, there's nothing to adjourn.

    If you go to court and simply say "I need three additional months to prepare", you can expect your motion to be denied. You need to provide an actual basis for requesting an adjournment, and an actual reason why you cannot prepare within the time frame defined by the court in its scheduling order.

    If you agreed to pay 18% interest on your debt, then it's reasonable for the plaintiff to ask that you be charged the interest you agreed to pay.

    Thank you all for the response. I do have a follow-up question(s).

    Firstly, I'm being charged for interest at 18%. That was the last interest rate on my Visa. However, attached to the affidavit on the summons I was given was a Visa account statement but it did not have the "terms and conditions" which is always located on the backside of each statement. I went back to my old Visa statements and found "terms and conditions" on the backside of the statement. For some reason, it was not there when I received the affidavit. Again, this determines how the interest is accrued and how penalties are assessed. Can I strike their desire to have accrued interest continue because they've not attached terms and conditions that states this fee can be continued?

    The "term and conditions" only talked about how Finance Charges are accrued and penalties assessed.

    Secondly, there is nothing attached to the affidavit that discusses how this is to be handled in the event that the account goes into delinquency/charged off. So, for instance if the Visa agreement mentioned arbitration or something else, I have no idea. Don't get me wrong, I realize if your credit goes into delinquency you can be sued. However, usually there is verbage regarding what jurisdiction the case is to be handled in. Or whether this will go to arbitration first. Again, I have no idea because nothing discusses this in the affidavit of documentation they've attached. I went back to my old Visa bills I can't find anything in the terms in conditions or anywhere. I'm thinking, this information could have been in the original credit card application I signed when I applied for credit. Unfortunately, my credit union is not talking to me and I'm unable to find out this information. However, I figured I can just go the the credit union and see a credit card application because this may have this information? Any other suggestions?

    Lastly, if I ask for you a continuance and it is granted, and a new court date is given, will I be charged more attorney fees?

    -Jen
    Virginia

  4. #4
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    Default Re: Sued for Credit Card Debt and Legal Fees

    Quote Quoting Jennifer Williams
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    Firstly, I'm being charged for interest at 18%. That was the last interest rate on my Visa. However, attached to the affidavit on the summons I was given was a Visa account statement but it did not have the "terms and conditions" which is always located on the backside of each statement. I went back to my old Visa statements and found "terms and conditions" on the backside of the statement. For some reason, it was not there when I received the affidavit. Again, this determines how the interest is accrued and how penalties are assessed. Can I strike their desire to have accrued interest continue because they've not attached terms and conditions that states this fee can be continued?
    No.

    What you have to understand is all the complaint says is what you are being sued for. There is no requirement that any evidence or documents be attached to it. Exchange of documents occurs during the discovery period which begins after you have filed your answer to the complaint.

    Quote Quoting Jennifer Williams
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    Secondly, there is nothing attached to the affidavit that discusses how this is to be handled in the event that the account goes into delinquency/charged off. So, for instance if the Visa agreement mentioned arbitration or something else, I have no idea. Don't get me wrong, I realize if your credit goes into delinquency you can be sued. However, usually there is verbage regarding what jurisdiction the case is to be handled in. Or whether this will go to arbitration first. Again, I have no idea because nothing discusses this in the affidavit of documentation they've attached. I went back to my old Visa bills I can't find anything in the terms in conditions or anywhere. I'm thinking, this information could have been in the original credit card application I signed when I applied for credit.
    I don't think so. Every credit card I've ever applied for sent the cardmember agreement along with the credit card. You can sometimes find generic credit card agreements online with the credit card company but I have never been successful at finding the actual agreement for any particular card and always had to wait until it comes in with the card and then I scan the agreement to my computer where I can keep it forever.

    Quote Quoting Jennifer Williams
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    Lastly, if I ask for you a continuance and it is granted, and a new court date is given, will I be charged more attorney fees?
    Yes. The credit union's attorney will continue billing the credit union by the hour for any work he has to do on the case, which includes reading your motion and responding to it. You can bet if the attorney fees are $4500 now, they will be 3 or 4 times that amount in 6 months.

    Which brings me to my next point. You really don't need a continuance. Just file your answer by the deadline and then the discovery period starts. That could take a few months and that will give you time to consult an attorney of your own. If you can't afford an attorney, one will NOT be appointed for you for free.

    One more point. If you actually owe $18000 (you probably do and you know you do) you're going to lose whether you go to trial or go to arbitration. Arbitration doesn't mean an easy win. All the arbitrator has to do is see your account history and he'll rule in favor of the credit union anyway.

    You might be wise to consider bankruptcy. It's a lot cheaper to pay a lawyer to file bankruptcy (if you qualify for Chapter 7) than it is to hire one to defend a lawsuit that you are bound to lose. Judgments in VA are good for 8 years and might even be renewable. They allow wage garnishment and bank account seizure. They allow liens to be filed on your real estate that you own or will own at any time during the life of the judgment.

  5. #5

    Default Re: Sued for Credit Card Debt and Legal Fees

    Thank you for your response. It is much appreciated.

  6. #6
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    Default Re: Sued for Credit Card Debt and Legal Fees

    You are subject to the terms you initially agreed to, plus any modifications they sent you for which you used the card after. Not saving your account terms is not their fault.

  7. #7

    Default Re: Sued for Credit Card Debt and Legal Fees

    Quote Quoting Disagreeable
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    You are subject to the terms you initially agreed to, plus any modifications they sent you for which you used the card after. Not saving your account terms is not their fault.
    Thank you for your quick response. I guess I'll only find this information out if I file a discovery.

    -Jen

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