New York City Debt Collection Defense Attorney

The Langel Firm Swiftly Causes Dismissal of $86,473.47 Bank Lawsuit

Regions Bank sued our client in for a line of credit issued for $90,000.00. This blog details our defensive strategy to combat the lawsuit and secure a favorable outcome for our client.

Challenging Service and Statute Limitations: A Dual-Pronged Defense

We attacked the bank's case on the grounds of bad "service" (improper notice). Our client supplied proof that he had not had any connection to New York since 2007. Therefore, we argued that any service upon him in New York was defective.

We also attacked the bank's case on the grounds that its lawyers misrepresented (and violated) the "statute of limitations" (time in which to sue—in this case, 6 years). The bank's lawyers asserted that liability arose from the date of the debt's charge-off. New York law, however, in Ely-Cruikshank v. Bank of Montreal, holds that liability arises from the date of the default—not the date of charge-off.

We argued that the above misrepresentation of law triggered potential consumer violations under the Fair Debt Collection Practices Act.

The bank promptly agreed to discontinue its case without settlement.

Understanding Credit Card Default vs. Charge-Off

When facing credit card debt, you’ll likely hear the terms “default” and “charge-off” used a lot. But what do they actually mean?

Simply put, a default occurs when you fail to make monthly minimum payments on your credit card, violating the cardholder agreement. This default typically happens before a charge-off.

Once an account has been in default for a prolonged period, generally 180 days without payment, the bank will often charge off the account. This means the bank removes it from its books as an asset and sells it to a debt buyer.

The key difference is that default may potentially be reversible if payments resume, while a charge-off is when the bank gives up on collecting and hands your debt over to third-party collectors.

So, in plain language:

  • Default - You stop paying your credit card bill
  • Charge-off - The bank says, "enough is enough," and proceeds to collection

Understanding this distinction is helpful when disputing credit reporting or dealing with debt collectors. And if you face aggressive collections on charged-off cards, contact our legal team right away to protect your rights.


This case highlights the power of knowing your legal rights and having a strong defense in debt lawsuits. Contact our law firm for a consultation for expert legal advice and defense against debt claims. We're here to protect your rights and secure a positive outcome.

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