Sued For a Debt?
Our Pittsburgh lawyers successfully defend claims for unpaid credit card debt and all other debt collection lawsuits in Pennsylvania. We challenge in court claims for an unpaid auto loan, student loan, mortgage debt, claims on co-signors, stake debt, junk debt, and other defense issues.
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Non Payment of Credit Card Debt
★★★★★
“I was sued for the non-payment of credit card debt. 300 page credit company card lawsuit! I thought we were toast. Mr. Elliott filed objections to the lawsuit against me. Mr. Elliott argued a technicality and was able to get the case dismissed.” D. H.
Affordable Defense of Debt Collection Lawsuits
Our Pittsburgh lawyers are happy to discuss with you the defense of any collection matter, including credit card debt cases. Our Pittsburgh attorneys navigate changes to debt collection and credit card suit rules in Allegheny County & Western PA!
Excellent attorney"
★★★★★
Mr. Elliott was representing me against a big bank and didn't seem threatened by them at all. He was on top of everything and never faltered. We received a wonderful conclusion.
“Rock Star."
★★★★★
by Ross M. I don't think I'll ever be able to express the extent of my gratitude!
Flat Fee Representation
Sued for a debt? Call to find out how easy and cost-effective it can be to get the case against you negotiated down dramatically or dismissed. Further, might also have a counterclaim for your costs, damages, and attorney fees if the debt collector violated the Fair Debt Collection Practices Act. Likewise, a creditor making false or misleading statement to you can be countersued for violating PA's Unfair Trade Practices and Consumer Protection Law or the FCRA. We also advise how to clean up your credit rating or credit report.
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412.342.0992
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“Great to Deal With."
★★★★★
"Attorney Todd [Elliott] handled my claim quickly and very professionally. He always responded to emails fast and he answered all of my questions. He is very knowledgeable about the law and is a great attorney to have on your side. Will definitely use this firm again if I have to."
Frequently Asked Questions
What is the Statute of Limitations For Suit For Unpaid Debt?
It's 4 years, in Pennsylvania, to sue for non-payment of debt.
However, your contract -- which created the original debt -- can lengthen or shorten the time period for suit. Plus, the four year period starts running on the date of the first missed or late payment, not the date of the debt's inception. So if you took out a loan 10 years ago, and made payments until six months ago, when your payment was late, your creditor still has 3.5 years to sue. Lastly, when you sign an instrument "under seal," it can extend the statute of limitations to twenty (20) years.
What Defenses Exist to Collection Lawsuits in PA?
The defenses are many.
First, the party suing you has the burden to prove through admissible evidence (not hearsay) the existence of a valid contract -- having an offer, acceptance, and something exchanged for value (consideration). The Plaintiff must also prove reasonably specific terms. This can be difficult. Likewise, Pennsylvania precludes a party from "penalizing" another via contract, so "penalty fees" should never be enforceable.
Plus, the creditor must file suit within four (4) years of the breach in Pennsylvania, otherwise the PA statute of limitations will bar the claim for recovery. Moreover, even if the court has entered judgment against a debtor -- by default or from losing in court after a trial, additional defenses exist (see below).
What Advice Can You Give Right Now?
First, do not communicate with the credit card company or anyone calling on its behalf.
Why? They probably want you to acknowledge the debt, which will frustrates our ability to defend you in court. Plus, the statute of limitations may have already run regarding their claims, unless you say something to acknowledge the debt. Hence, do not be tempted to pay them anything until you talk to us. If you agree to any type of payment plan, you risk validating the debt, but if you have, we can still help.
Also, the debt collector may have violated the Fair Debt Collection Practices Act, which may entitle you to recover money for your aggravation and attorney fees, if the debt collector has engaged in improper behavior. Plus, if it's the credit card suing you directly, the Fair Debt Collection Practices Act does not apply, but Pennsylvania's Unfair Trade Practices and Consumer Protection Law might apply, if the credit card company made false representations (about the amount of the debt) and/or attempted to charge a "penalty," which is not enforceable in PA.
Does Your Debt Defense Group Defend More Than Credit Card Debt?
Yes. Our lawyers defend every kind of civil lawsuit -- large and small, for breach of contract, or negligence, non-payment of vehicle loans, or other debt. We provide a defense in court to just about any claim involving a demand for money.
Am I a Bad Person For Beating a Debt Collection Case?
Absolutely not. OK, you got behind on loan or credit card debt. Way behind. No problem. Our Pittsburgh lawyers never judge you. Just the opposite.
The payments you've made (prior to default) may have already paid back the debt. Often, the issue in debt collection is the highly questionable interest rate charged and/or late fees and other ridiculous costs added to your debt. Such fees mainly exist to enrich the bank or credit card company. Click here to learn about our Pittsburgh lawyers.
I Never Signed a Written Contract to Pay a Debt. Can I be Sued?
Unfortunately, yes.
A contract to pay a debt need not be in writing, in Pennsylvania. Also, there is potential liability under "quasi-contract" theories. One such theory is "unjust enrichment." This is where no contract exits, but it would be unfair for one party to be "enriched," or benefited, at the expense of another.
Another "quasi-contract" theory is called "account stated." Here, one party regularly makes payment to another based on a billed account. The original agreement for the "account" need not be in writing.
What Can Your Lawyers Promise About Reducing a Debt?
Our job is to work extremely hard get the claims dismissed or negotiated down dramatically. So you need not consider bankruptcy or breaking your budget to re-pay a credit card company or loan creditor. This is especially true if the original creditor has assigned the debt to a debt collector or other third party. Then, the plaintiff suing you must prove two contracts: one concerning the underlying debt, and two, the assignment, which is a second contract. Click here for more.
Overall, we cannot promise any particular result but we can promise you this: if retained, we make the debt collector's job extremely difficult, to give them the incentive to give up, or settle for much less than they are demanding.
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What Results do your Pittsburgh Lawyers Obtain?
No two cases are exactly alike. No results can be guaranteed. However, our Pittsburgh lawyers regularly get debt collection cases resolved for small fraction of the amount demanded. For example, we negotiated down a fully secured, second mortgage (Dollar Bank) from $80,000 down to $2,000, by (creatively) asserting that the State of California's three (3) years statute of limitations governed this Pennsylvania second mortgage.
Moreover, in many cases, we can get the claims dismissed entirely, meaning, you do not have to pay anything to the creditor, including a credit card company or its assignee. In fact, we have a long and successful track record of defeating lawsuits filed by credit card companies for $5,000, $10,000, $20,00 and more.
What Type of Debt Defense Representation Do I Need?
When hiring a Pittsburgh lawyer to defend a claim for debt collection, you should have two goals: (1) getting a fair price for legal services and (2) hiring a lawyer who focuses on the current state of debt collection law -- in other words, not a general practitioner.
Very recently, the appellate courts -- and local judges -- have made it more difficult (but certainly not impossible) to defeat debt collection lawsuits immediately. Your Pittsburgh lawyer's experience level with the current law will matter. Our Pittsburgh attorneys have successfully defended these claims notwithstanding numerous changes in the debt collection law.
Can I Be Sued For Co-signing For the Debt of Another?
Yes. Creditors often sue the defendant as "co-signor" or "co-buyer," for allegedly co-signing or co-buying a product or vehicle. Here, again, the Plaintiff has the burden of proof, subject to the statute of limitations. Plus, the person co-signing must be given something of value -- or consideration -- for co-signing. Call our Pittsburgh lawyers any time for more.
Does Your Firm Handle the Defense of Debt Assigned to Another?
Yes. Sometimes the party suing you is not even the same party to your credit crd or debt. For example, the debt may have been has transferred or "assigned" by one company to another. However, in court, there must be proof of an assignment via documentation. Otherwise, the court can strike down the assignee's attempt to enforce a claim for credit card debt.
Are there Defenses to a Judgment For an Unpaid Debt?
Your civil defense attorney may be able to petition to open the debt collection judgment, in certain circumstances.
Plus, sometimes you are protected by a corporate shield, if your business was incorporated at the time you incurred business debt. Further, if you are married, the person making a claim on you needs a judgment against both spouses. Otherwise, it cannot execute a judgment to garnish the the jointly owned marital assets.
All that said, a judgment should be taken very seriously, as it can be used to garnish bank accounts, vehicles, personal property, and even your home at a sheriff's sale. Call for assistance, especially if you received "interrogatories in aid of execution," or your bank account has been frozen.
Does My Insurance Cover my Defense of a Debt Collection Claim?
Generally, no, as to the debt, but your legal defense costs may be covered.
This is to say, liability insurance will not pay one's alleged debts. However, one kind of insurance -- often through work or other prepaid legal plan -- will pay your lawyer fees to defend a claim for non-payment of a debt. For example, companies such as MetLife and Evergreen pay our Pittsburgh law firm directly (at no cost to you) to defend you when sued for a debt collection claim.
Plus, if you have fallen into debt because of some event -- such as a motor vehicle accident, a fire, flood, or even disease such as COVID-19) or you have business interruption insurance -- the debt may be covered by insurance. Plus, our lawyers can also bring a claim against the party causing the event (such as physical injuries or property damage), such that their insurance (the negligent party's liability carrier) may pay for your claims. We seek a recovery for all your late fees and other costs related to the debt.
What's New in Credit Card Defense Law? (Lots!)
Until recently, the courts would automatically dismiss any lawsuit (a civil complaint) by a credit card company unless it included a copy of the actual credit card application the debtor had endorsed. In practice, very few credit cards companies keep track of the original application. Thus, it was relatively easy to defeat a credit card debt claim by filing objections, especially when the debt had been assigned to another party that sued the debtor.
Then, all that changed on November of 2011 with the holding of Discover Bank v. Stucka, 2011 PA Super 241 (2011). There, the Superior Court of Pennsylvania opined that the Plaintiff-debt collector need not attach to its complaint the endorsed credit card application so long as the Plaintiff produces a copy of all the credit card statements going back to a zero balance. In practice, this is relatively easy for a credit card companies to do, because statements are more likely to be stored electronically than hand written credit card applications signed at the mall, for example.
What are Your Options, Post Stucka?
What happens if, Post-Discover v Stucka, a credit card company (or its assignee) sues you and attaches all the statements going back to a zero balance. Do you give up on debt defense? We don't.
Despite Stucka, our Pittsburgh lawyers continued defend all debt collection cases aggressively, including credit card cases. We continued objecting to debt collection lawsuits, before a local judge Stanton Wettick, alleging Plaintiffs still had to plead how the contract was formed -- was it in writing over the phone? - unlike Stucka. We argued to the Court:
With Discover Bank v. Stucka, 2011 Pa.Super 241, 33 A.3d 82 (2011) clearly distinguishable, the failure to attach a relevant writing to a pleading is generally considered to be a fatal defect, see Atlantic Credit & Finance, Inc. v. Giuliana, 829 A.2d 340, 345 (Pa.Super.2003), app. denied, 577 Pa. 676, 843 A.2d 1236 (2004), and “[o]rdinarily, a complaint should be stricken for failure to attach an essential document.” Adamo v. Cini, 656 A.2d 576, 579 (Pa.Cmwlth.1995)."
This helped create the local "Allegheny County Rule," which ignored most parts of Stucka. Judge Wettick has since retired. However, his replacement, Judge Colville, followed the "Allegheny County Rule," dismissing cases unless the credit card application was attached to the lawsuit -- along with and all bank statements to a zero balance.
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How Are Credit Card Debt Cases Handled in Allegheny County, Currently?
Note that Judge Colville has since left the Court of Common Pleas of Allegheny County for a federal judge position in the Western District of Pennsylvania.
With this, Allegheny County has shifted to a rotating judge system for debt collection matters, discussed in greater detail here. This has had a net-positive effect for debt collectors, at the expense of debtors, but debtors still have legal options...
Do Your Pittsburgh Lawyers Still Attack Debt Lawsuits?
Yes. Our Pittsburgh attorneys often file objections to lawsuits to strike all debt collection claims: for unjust enrichment, breach of contract, and account stated. We also argue that the penalty clauses for late payments are punitive in nature and therefore not enforceable in Pennsylvania. Click here for more about penalty clauses.
We defend these cases filed on the small claims court docket (where the creditor may obtain award for up to $12,000 plus interest and court costs), compulsory arbitration docket (where, in Allegheny County, the limits are $35,000), and the Court of Common Pleas.
Does Liability Insurance Cover Debt Collection and Credit Card Debt Suits?
No.
Liability insurance -- such as home owners or renter's insurance -- will not pay your defense costs or any part of a claim against you for non-payment of debt. Click here to learn more about why liability insurance coverage in Pennsylvania does not apply to debt related cases.
However, some forms of insurance will at least pay -- or help pay -- your defense costs for defending a debt, such as a prepaid legal plan you obtain directly or through your employer, discussed above.
The bottom line: any time a creditor or debt collector sues you -- or threatens to sue you -- for non-payment of debt, check all sources of insurance coverage you may have in place for coverage to at least help out with defense costs.
Going On the Offensive
"Predator Becomes the Prey"
You might also have a counterclaim (countersuit) of your own for the debt collector's violation of either:
(1) Pennsylvania's Unfair Trade Practices and Consumer Law, which creates a cause of action for detrimental reliance on a deceptive statement made to a consumer, or
(2) The Federal Fair Debt Collection Practices Act, which allows you to sue those collecting on the debt of another in certain circumstances. Click here for more.
Given the above obstacles that creditors face when filing suit on the court of Common Pleas, many debt collection attorneys are now filing on the small claims court docket. Talk to an attorney about the best strategies to employ, before you aspire to defend yourself. Otherwise, you risk acknowledging the debt, which will restrict our ability later to assist you.
Got More Questions?
We have answers.
Click here for more answers to Frequently Asked Questions about debt defense.
Consultation and Flat Free Representation
Contact our experienced Pittsburgh, PA credit card defense lawyers and get a question or two answered for free.
New Number: 412.342.0992
We look forward to hearing from you!
What is the Recent News about Credit Card Debt Suits in PA?
News about debt defense:
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- Forbes - state-by-state, can a judgment for a credit card debt can be used to garnish wages or a bank account? (for more). Answer: PA: wages, no, bank account, yes.
- CNBC News: Almost 90% of Americans are able to erase this $30 credit card fee just by asking. Learn more.
What are some legal updates for credit card debt lawsuits?
Here are recent Pennsylvania cases involving appeals of credit card cases:
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- Originally a non-precedential decision, Discover Bank v. Booker, 2021 PA Super 139 - Pa: Superior Court 2021 involves interesting facts There, the trial court found that the evidence of bank statements was enough to establish a contract between the parties with reasonable precision as to the terms, despite the actual contract not being before the court. That said, note the precise evidence before the court which does not normally exist in these cases: "Discover produced Booker's cardholder application, some of Booker's credit card statements, some of the checks Booker sent to Discover as payment, and a 2010 updated credit card agreement." As such, Booker should likely make a difference in credit card litigation, unless the credit card company (or party suing in its stead) can produce the credit card application, for example. It's noteworthy that Booker is precedential, per here.
- Bank of America, NA v. Reilly, Pa: Superior Court 2021 (dismissal of the counterclaim by a credit card debtor).
- The Plaintiff-credit card company obtained summary judgment in its favor against the Defendant-debtor, who appealed. The appellate court found the appellant's two page analysis to be "disjointed" and quashed the appeal. AMERICAN EXPRESS BANK, FSB v. Reilly, Pa: Superior Court 2021.
- Discovery Bank v. Bagdis- judgement on the pleadings was granted.
