Email Us
(404) 635-6883

Is Denying a Credit Card Debt Enough?

Get Help from Diwan Law, LLC

Contact Us

Suppose a credit card company sues you for an unpaid balance. In that case, you need to file an Answer with the court.

But, filing an Answer may only be the beginning of your defense. Contact Diwan Law at 404-635-6883 for a free case evaluation.

The Georgia Court of Appeals decision in Melman v. FIA Card Services, N.A., 312 Ga. App. 270, 718 S.E.2d 107 (2011) shows what can happen when a creditor supports a motion for summary judgment with business records and sworn testimony, while the defendant fails to present evidence creating a genuine dispute.

What happened in Melman v. FIA Card Services?

FIA Card Services [the "Creditor"] sued John Melman, alleging that he owed approximately $38,560.00 on a credit card account. Melman filed an Answer generally denying the debt.

The Creditor later moved for summary judgment. It submitted an affidavit from an operations analyst who stated that she was familiar with the Creditor's business records and that those records showed Melman had obtained credit, made purchases and received advances, and owed the claimed balance.

The supporting documents included credit card statements and information explaining the relationship between Bank of America and FIA Card Services following a merger.

Melman argued that the Creditor had failed to provide sufficient evidence. But, he submitted no evidence in opposition to FIA's motion for summary judgment.

That distinction proved critical.

Does the creditor have to prove its case?

Yes.

The Court explained that to obtain judgment on the credit card account, the Creditor had to establish that Melman entered into an agreement or established an account, accumulated a balance, and failed to pay it. The Creditor also had to provide the pertinent records relied upon and referenced in its supporting affidavit.

FIA satisfied that burden. The records included an agreement explaining that the Bank of America account would be issued and administered by FIA and statements bearing Melman's name and address.

Why was a general denial not enough?

This is one of the most important lessons from Melman for Georgia consumers.

Once the Creditor supported its summary judgment motion with evidence sufficient to establish its claim, Melman could not simply rely on the general denial in his Answer. The Court explained that a party opposing a properly supported summary judgment motion must present specific facts showing that there is a genuine issue for trial.

And, Melman did not do that.

Because he did not submit evidence showing that the account records were incorrect or otherwise creating a factual dispute, the trial court properly entered summary judgment.

The worst thing you can do is nothing.

Can you raise defenses on appeal?

Generally speaking, no.

Melman also argued on appeal that there were discrepancies involving the account number and the creditor's name. But, the Court noted that he had not made that argument before the trial court.

The Court emphasized that parties have a duty to present their case when the summary judgment motion is being decided. Waiting until after judgment can be too late.

WHAT SHOULD YOU DO IF YOU ARE SUED?

If a credit card company, bank, junk debt buyer, or collection agency has sued you in Georgia, do not assume that filing a basic Answer is the end of the process.

A creditor may file affidavits, account statements, business records, and a motion asking the judge to enter judgment without a trial. When clients ask me whether they need to do more than just file an Answer, I tell them that the creditor's evidence should not go unanswered.

Unfortunately, many consumers assume that simply denying the debt is enough to stop a judgment. Melman shows 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.

Conclusion

If a creditor is suing you for credit card debt or any other consumer debt, contact Diwan Law, the credit card defense attorney, to discuss your legal options. Call Diwan Law, (404) 635-6883, for a free consultation.

About Diwan Law

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:

  • Debt buyer debt collection lawsuits (i.e. Midland Funding, Portfolio Recovery Associates, Asset Acceptance, Cavalry Portfolio Services, Unifund, etc.);
  • Original creditor debt collection lawsuits (i.e. American Express, Citibank, Suntrust, etc.);
  • Debt collection lawsuits arising from credit cards, automobile repossession deficiencies, apartment leases, and other contract-related matters;
  • Dormant judgment revival; and
  • Garnishment actions on bank accounts or wages.

Diwan Law Handles Cases in:

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 debt, credit card lawsuit, summary judgment, business records, debt collection defense, 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.

Call Diwan Law
Email Diwan Law
Service Areas
Debt Collection Help

Related Blog Posts

View More