lawsuits


Opening Credits, the Q & A section of Creditcards.com, recently interviewed me about the law in Alabama as applied to minors who obtain credit cards in their own names.

Ms. Erica Sandberg writes a periodic advice column on the popular credit advice website CreditCards.com.  One of her readers had a question about the enforceability of a credit card contract entered into by a minor.  In Alabama, minority is a defense to a breach of contract lawsuit.  To enforce a contract, the creditor must show that there was an offer, an acceptance of that offer, consideration exchanged, capacity, and legality.  The age of the person entering the contract can create an issue regarding the person’s capacity to enter into a contract.  The general rule in Alabama is that contracts entered into by minors are voidable.  See Ex Parte Odem, 537 So.2d 919 (Ala. 1988).  This means that they aren’t automatically invalid, but the minor cannot be compelled to perform their obligations under the contract if they do not choose to do so.

This includes contracts for the extension of credit, such as a credit card.  In other words, if a lender is dumb enough to lend money to someone who isn’t old enough to enter a contract, the law doesn’t have much sympathy for them.  That’s why so many student loans are co-signed by parents or spouses.

Keep in mind, however, that lying on a credit application about your age or income can be considered fraud, and that could create a separate route for a creditor to take legal action against you.  Though to be honest, in hundreds of debt collection cases I’ve dealt with, I have never seen a credit card company or debt collector sue for fraud on a credit application.

The original Creditcards.com article can be found here:

https://www.creditcards.com/credit-card-news/can-minor-be-sued-for-defaulted-card-debt.php


“Asset Recovery Associates” sued for FDCPA and Fair Credit Violations

Financial Credit Service, Inc., also known as “Asset Recovery Associates, Inc.” has been sued in Alabama for violating the Fair Debt Collection Practices Act and Fair Credit Reporting Act. Our client is a recently retired docks worker.  He has good credit, good income, and has made it a practice of […]


Chuck Stevens Chevrolet Found Liable for Defrauding Alabama Woman – Consumer Rights Attorney Judson E. Crump

Chuck Stevens Chevrolet of Atmore, Inc. sold Tamie Shufford a car that had about 1,000 more miles on it than they certified in their sale contract. Their salesman told her the car was new and had only 67 miles on it.  The paperwork and the odometer disclosure forms said the same […]


Alabama Legislature Proposes to Help Credit Card Companies Sue their Customers – Alabama Debtor’s Rights Attorney Judson E. Crump

The Credit Industry Lobby has Succeeded in Convincing the Alabama Legislature to Make it Easier to Sue Customers. Once again, a big business lobby has convinced some of the fools in Montgomery to propose a bill that would help the huge-money finance industry at the expense of ordinary working people. […]


Hired Ferry & Nicholas? Consider Getting a Refund – Alabama Debtor’s Rights Lawyer Judson E. Crump

Ferry & Nicholas Sends Advertisement Letters to Debtors in Alabama.  I believe they may be sending false advertisements. If you have been sued by a debt collector or credit card company in Alabama, you’ve probably received a letter from a company called Ferry & Nicholas.  They claim to be “professional […]


Alabama Woman Sues Comerica Bank over Direct Express Debit Card Dispute – Alabama Consumer Credit Attorney Judson E Crump 32

Last Thursday, we filed suit against Comerica Bank, issuer of the popular Direct Express Debit MasterCard, alleging that the bank failed to investigate purported errors, despite my client having disputed the errors both orally and in writing.  The allegations are summarized below: The Direct Express card is a debit card […]


Who is Ferry & Nicholas? Why you should not hire them. – Alabama Consumer Credit Attorney Judson E Crump

If you have received a letter from a “firm” called “Ferry & Nicholas,” it means that you have been sued by a credit card company or debt collector.  Ferry & Nicholas runs a clever little scheme.  See, they’re not lawyers, which means that they don’t have to comply with the Alabama […]


Why I defend People From Credit Card Lawsuits – Alabama Consumer Credit Attorney Judson E Crump

I regularly go to court to fight lawsuits against people who legitimately do owe some money to the people suing them. Is that morally acceptable? Is it ethical for me as an attorney? Yes, because being in financial trouble is not a crime. The people I represent have already tried to pay their bills, but their creditors have chosen to sue them instead of make affordable settlement arrangements. By fighting these suits, I send a message that you should consider working with your delinquent customers before taking them to court. Because if you go to court against a well-defended debtor, you may end up with nothing at all.

Moreover, the banks I fight are all based in big cities far away from my community. I consider it a duty to do what I can to keep as much of the hard-earned money of the people of South Alabama as possible right here. Our local businesses need customers whose wages aren’t being shipped out to Delaware or New York. Everyone wins if the justice system isn’t twisted into some giant collection machine.


How to Answer a Collection Lawsuit in Alabama – Alabama Consumer Credit Attorney Judson E Crump 2

When you’ve been served with a lawsuit, the most important thing is to take action immediately.  Answer it before the deadline.  How do you answer?  It’s really simple: you just write down your response to the lawsuit on a piece of paper and take it to the clerk of court.  […]