Defending credit card collection suits

Failure to pay on a credit card is a breach of contract in Illinois. There are many more defenses to a credit card collection case than there are in most breach of contract claims. In fact, each time a credit card is used a new contract is formed between the card holder and the bank.

The parties suing on a debt collection for a credit card must establish the following:

  1. A signed credit agreement attached to the complaint.
  2. The statute of limitations should be interpreted in credit card cases to be only 5 years.
  3. If a collection agency is pursuing a debt, the collection agency must be licensed.
  4. Section 8d(b)(e) of the Illinois Collection Agency Act prohibits a creditor’s assignee from filing a collection Complaint in its own name without attaching to the Complaint an actual written assignment signed by the assignor specifically stating the effective date of the assignment and the consideration of the assignment.
  5. The attorneys for the bank are not entitled to submit a summary of outstanding accounts, but must actually submit the underlying documents to the court to make them available for inspection.

At Newland and Newland, LLP, we can negotiate a debt settlement, credit card debt, mortgage debt, loan debt, and almost any other type of debt.

  • Newland & Newland LLP, Attorneys, Arlington Heights, IL