Our Pittsburgh lawyers are often asked: how do I defeat a claim for non-payment of credit card debt in Pennsylvania? There are mainly two ways: one, by raising a legal defense, such as the statute of limitations or the lack of a written contract for the amount demanded by the credit card company (“bank”). The other is, by challenging the evidence in support of the claim. The focus of this article is the evidence needed to prove a claim for non-payment of money.
Sufficient Evidence to Prove a Claim
What evidence is needed to prove a claim for non-payment of money in Pennsylvania? First, it amounts to a claim for breach of contract. As such, the Plaintiff must prove the existence of an admissible contract. If the contract was written, such as a loan application or credit card application, then there should be a writing. However, just producing the writing in court is not enough. It has to be authenticated.
Authentication of Key Documents To Prove Money is Owed
This can be done three ways.
First, the plaintiff can offer a witness who was privy to the contract and can verify the wording of it. This is often tricky. Who remembers the wording of a contract? The mistake many defendants make is, they admit to the authenticity of the contract, assuming that because it’s “written” it must be accurate. In practice, many credit card companies use an “exemplar” contract: a document they claim they “would have used” to create the contract. This is not a contract, unless at least one person can verify it’s the contract.
Next, the second method is by having a records custodian testify that the alleged contract was kept in the ordinary course of business. With this exception to hearsay, the document comes into evidence as purported as such. However, debt assigned from one company to another will not have the same indication of reliability. The records custodian from the company purchasing the debt cannot say that records kept by the company originating the debt are accurate.
Lastly, the third way to prove a contract is through Rule 1305(b) of the Pennsylvania Rules of Civil Procedure. This allows business records to be admissible if served on the opposing party at least twenty (20) days prior to an arbitration. This rule governs arbitration cases only, however. Those are cases where the amount demanded is $50,000 or less (exclusive of interest) in Allegheny County.
Lack of Evidence of a Contract: Then What?
When the party seeking to prove a contract cannot prove the existence of a contract, he’s not totally out of luck. He can rely on a theory of “unjust enrichment,” instead. There, in the absence of a contract, the party having loaned one or who provided a credit card — used by the Defendant — can sue for the amount the Defendant was “unjustly enriched.” However, in the credit card debt scenario, the bank can only recover for the amount the card had been used — minus late fees, high interest, and payments made. In practice, most people make the minimum payment on their credit cards for years. In doing so, they end-up paying back the full amount to which they used the card. Thus, if the contract cannot be located, an unjust enrichment claim will likely fail.
Proof of Statements and Damages
As mentioned, the key to many debt collection cases is in the details: the claim is for the unpaid balance plus interest (25% or more!) plus late fees. These are recorded on a bank or credit card statement. However, here again, admissibility is key. Such statements are not automatically admissible. The three methods above apply. Thus, your Pittsburgh lawyer can help defend claims for payment of money allegedly owed. This time, by challenging the individual statements, as inadmissible hearsay. Call a Pittsburgh attorney at our firm for the best methods to defend such actions in court.
