Are you being sued for credit card debt in Georgia? Have you received a lawsuit from a bank, credit union, or debt collector?
You need to respond quickly when a debt collection company serves you with a lawsuit. Contact Diwan Law at 404-635-6883 for a free case evaluation.
A recent Georgia Court of Appeals decision shows why examining the creditor's evidence can make or break a case.
In Brown v. Service Credit Union, 924 S.E.2d 783 (Ga. App. 2025), the Georgia Court of Appeals reversed a summary judgment that had been entered in favor of Service Credit Union [the "Credit Union"] in a credit card collection lawsuit.
The Credit Union sued Carlos Brown for breach of a credit card agreement. The Credit Union alleged that Brown obtained a Visa credit card, failed to make the required payments, and owed an outstanding balance.
Brown admitted that he had applied for the credit card. But, he disputed that he had defaulted or owed the balance claimed.
The Credit Union moved for summary judgment and relied heavily on affidavits from two employees. Those employees referred to credit card statements and other account records to support the claimed debt.
The trial court granted judgment in favor of the Credit Union.
Brown appealed and won.
The Court of Appeals agreed with Brown that the Credit Union had failed to properly authenticate the business records [the "Records"] supporting its claim.
Under Georgia law, a plaintiff seeking summary judgment on a credit card account must establish that the defendant created an account, accumulated a balance, and failed to pay it. And, when the creditor relies upon records pertinent to the debt, those records must be properly presented to the court.
Generally speaking, Georgia's business-records exception requires a proper foundation. This includes evidence concerning when the record was made, the knowledge and business duty of the person supplying the information, and whether it was kept in the regularly conducted course of business.
The Credit Union's witnesses stated that the Records were kept in the ordinary course of business.
The Court disagreed.
The witnesses did not adequately establish that the Records were made at or near the time of the events. They also did not establish that the information came from someone with personal knowledge and a business duty to report it.
So, the Court concluded that the foundation was insufficient and that the testimony constituted inadmissible hearsay.
Without competent evidence establishing that Brown accumulated the balance and failed to pay it, the Credit Union had not made the required prima facie showing for summary judgment.
The Georgia Court of Appeals reversed the trial court's grant of summary judgment.
The worst thing you can do is nothing.
If you do not respond to the lawsuit, the creditor will get a default judgment against you. Armed with the default judgment, the debt collection company can garnish your wages and bank accounts.
Brown v. Service Credit Union illustrates an important principle. A creditor's allegations are not the same thing as admissible proof.
Even when a consumer recognizes the account, there may still be questions about the amount owed, the payment history, and whether the evidence is legally admissible. When clients ask me if they should fight a credit card lawsuit, I tell them that the creditor still has to prove he or she has a case.
Unfortunately, many consumers assume that because a creditor filed a lawsuit, the creditor automatically wins. That is not true.
Diwan Law will assert all viable defenses you may have, file the appropriate motions, and negotiate with the creditor. We have the knowledge and experience to defend you in every aspect of your case.
No matter where you are in the collection process, you deserve to know your rights and what to expect. Give us a call at 404.635.6883.
If a bank, credit union, junk debt buyer, or collection agency has sued you for credit card debt in Georgia, do not ignore the lawsuit. Contact Diwan Law, the debt defense lawyer, today at (404) 635-6883 to schedule your free case evaluation.
Diwan Law is dedicated to getting our clients the best result possible.
Diwan Law handles debt collection actions against consumers in the Magistrate, State, and Superior Courts of Georgia.
Diwan Law represents clients facing:
Gwinnett County Magistrate Court; Dekalb County Magistrate Court; Cobb County Magistrate Court; Fulton County Magistrate Court; Henry County Magistrate Court; and most other magistrate courts in Georgia.
Tags: Attorney, consumer rights, credit card lawsuit, debt collection defense, business records, summary judgment, Service Credit Union, fdcpa
* The information presented in this article does not constitute legal advice. All information, content, and materials presented on this website are for general informational purposes only. If your business is sued, we encourage you to contact Diwan Law before taking any action.
