Defenses to Collection Claims

AuthorDaniel A Edelman
ProfessionLawyer
Pages63-70
63
Defenses to Collection
Claims
CHAPTER
16
There are a number of substantive defenses that may exist in a collection lawsuit. Some of these are de-
scribed in this chapter. Many of these issues are highly technical, and we suggest that you retain a lawyer
familiar with consumer credit and debt issues to review your case and present any arguments that apply.
Bogus Charges on Credit Card Accounts
There have been a number of consent judgments and orders against major credit card issuers that involve
unauthorized charges for credit insurance and similar products. The card issuers include Capital One, American
Express, and Discover Bank (http://files.consumerfinance.gov/f/201207_cfpb_consent_ order_0001.pdf;
http://www.occ.gov/static/enforcement-actions/ea2012-212.pdf; http://files.consumerfinance.gov/f/2012-
CFPB-0002-American-Express-Centurion-Consent-Order.pdf; http://www.fdic.gov/news/news/press/2012/
pr12108a.pdf).
Other issuers, such as Chase and General Electric/Synchrony/CareCredit, have been involved
in litigation that casts serious doubt on the accuracy of their records and the validity of the accounts
(Consumer Financial Protection Bureau (CFPB) consent orders 2013-CFPB-0007 (Chase) and 2015-
CFPB-0013 (Chase); Office of the Comptroller of the Currency consent orders AA-EC-13-76 (Chase) and
AA-EC-2014-64 (Chase); CFPB consent order 2013-CFPB-0009 (CareCredit)). If a credit card account
involved one of these issuers, and especially if the facts of your case resemble the conduct at issue in the
prior cases, it may be very hard for the issuer, or anyone claiming to have acquired the debt from the
issuer, to prove anything.
Edelman53574_Ch016.indd 63 22/05/17 10:29 AM

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