When Credit Card Debt Lawsuits Are Based On Bad Information: Available Defenses for Unsuspecting Consumers

Many credit card debt lawsuits are filed mistakenly because they are based on incorrect information. There are countless instances where a person is wrongly accused of owing a debt and sued by creditors.


  • Credit card company has incorrect information. This is one of the most common defenses that arise in credit card debt lawsuits. There could be a case of mistaken identity, an accounting mix up, or inaccurate updating of records as the root cause for the debt collection lawsuit. When the debts are not yours, or you have proof that you paid the debt against you, defending a credit card debt suit is fairly straight forward.
  • Debts were discharged in bankruptcy. When the alleged debt is included in a bankruptcy schedule for the consumer, the outstanding credit card debt will be wiped out with the bankruptcy. You must show proof that the debt has been discharged as part of the bankruptcy proceedings in order to assert bankruptcy discharge of the debt as a defense to the credit card debt suit.
  • Debt is the result of identity theft. When debts are attributed to you, but were the result of fraudulent activities stemming from an identity theft, you are protected from having to pay those debts. However, it is important to present evidence that you did everything that you could to help yourself recover from the theft of your identity, including presenting evidence that you took action upon learning of the identity theft to notify the police and the credit card company of the fraudulent activity.
  • Debt is too old to collect. Debt collection claims have a statute of limitations, meaning that debt collection proceedings must be brought to the attention of the court within a certain amount of time after the debt went unpaid. If the original creditor is located in New York, then the debt collection case must be filed within 6 years of the debt going unpaid. But if the creditor is located in a different state, the statute of limitations will likely be that of the other state, which can vary between 3 and 6 years. For example, if the original creditor is located in Delaware, the statute of limitations for the original creditor or debt-buyer to sue in New York is only 3 years – that is, the Delaware statute of limitations – but many unscrupulous companies will sue after three years anyway. Even though this is illegal, without a knowledgeable consumer-protection attorney, unsophisticated consumers will frequently find themselves hornswoggled.
  • Creditor lacks standing to sue. A creditor must prove that it has the right (i.e., standing) to sue you for a debt. All too often, a creditor buys a block of accounts from another creditor and attempts to collect on those accounts. If the new creditor does not specifically own the right to collect on your account, and cannot prove that it owns your account, the new creditor lacks standing to sue and the case will be dismissed. Here too, however, consumers frequently don’t know that New York consumers have to allege lack of standing when they answer a debt-collection complaint.


Contact A New York Debt Defense Attorney

Many people find themselves bogged down by debt collectors and debt lawsuits, but you should never have to pay for a debt that is not yours or when you are legally no longer required to pay. If you are facing a credit card debt lawsuit, contact an experienced debt defense lawyer at the Bromberg Law Office, P.C. today to schedule an appointment.