Answer to Debt Collection Lawsuit (with FDCPA Affirmative Defenses) - Arizona

IN THE [☐ SUPERIOR COURT ☐ JUSTICE COURT] OF THE STATE OF ARIZONA

IN AND FOR THE COUNTY OF [____________] [☐ , [____________] PRECINCT]

Case No. [____________]

DEFENDANT'S ANSWER AND AFFIRMATIVE DEFENSES

Filed Pursuant to Ariz. R. Civ. P. 8 and 12

Defendant, [____________] ("Defendant"), appearing [☐ self-represented / ☐ by and through undersigned counsel], answers the Complaint filed by Plaintiff, [____________] ("Plaintiff"), and states as follows:

I. PRELIMINARY STATEMENT AND RESERVATION OF RIGHTS

1. Defendant timely files this Answer within the period prescribed by Ariz. R. Civ. P. 12(a)(1)(A). Defendant reserves all defenses, objections, and rights available under the Arizona Rules of Civil Procedure and applicable law, and reserves the right to amend under Ariz. R. Civ. P. 15.

2. By filing this Answer, Defendant does not admit that Plaintiff has stated a claim upon which relief may be granted, that Plaintiff owns or has standing to sue upon the alleged debt, that this Court has personal jurisdiction over Defendant, or that venue is proper under A.R.S. § 12-401.

3. Defendant does not possess the underlying account records and demands that Plaintiff prove, by admissible evidence, the existence, ownership, amount, and enforceability of the alleged debt.

II. RESPONSES TO THE NUMBERED ALLEGATIONS

4. Paragraph 1 of the Complaint: [____________]
   ☐ Admitted ☐ Denied; strict proof demanded ☐ Defendant lacks knowledge or information sufficient to form a belief as to the truth of this allegation and therefore denies it.

5. Paragraph 2 of the Complaint: [____________]
   ☐ Admitted ☐ Denied; strict proof demanded ☐ Defendant lacks knowledge or information sufficient to form a belief as to the truth of this allegation and therefore denies it.

6. Paragraph 3 of the Complaint: [____________]
   ☐ Admitted ☐ Denied; strict proof demanded ☐ Defendant lacks knowledge or information sufficient to form a belief as to the truth of this allegation and therefore denies it.

7. Paragraph 4 of the Complaint: [____________]
   ☐ Admitted ☐ Denied; strict proof demanded ☐ Defendant lacks knowledge or information sufficient to form a belief as to the truth of this allegation and therefore denies it.

8. Paragraph 5 of the Complaint: [____________]
   ☐ Admitted ☐ Denied; strict proof demanded ☐ Defendant lacks knowledge or information sufficient to form a belief as to the truth of this allegation and therefore denies it.

9. Paragraph [____] of the Complaint: [____________]
   ☐ Admitted ☐ Denied; strict proof demanded ☐ Defendant lacks knowledge or information sufficient to form a belief as to the truth of this allegation and therefore denies it.

10. Pursuant to Ariz. R. Civ. P. 8(b), Defendant denies each and every allegation of the Complaint not expressly admitted above and demands strict proof thereof.

III. AFFIRMATIVE DEFENSES

Without conceding that Defendant bears any burden of proof, and reserving the right to amend or supplement under Ariz. R. Civ. P. 15, Defendant asserts the following affirmative defenses under Ariz. R. Civ. P. 8(c). Select only those defenses supported by the facts.

☐ First Defense — Statute of Limitations. Plaintiff's claim is barred, in whole or in part, by the applicable statute of limitations. A debt evidenced by a written contract executed in Arizona, or by a credit card, must be commenced within six (6) years (A.R.S. § 12-548(A)(2)). A debt not evidenced by a written contract — including an oral contract or a stated or open account — must be commenced within three (3) years (A.R.S. § 12-543). Under Mertola, LLC v. Santos, 245 Ariz. 215 (2018), a cause of action to collect the entire credit-card balance accrues on the date of the first uncured missed payment, even absent an exercised acceleration option. The alleged debt accrued more than the applicable period before this action was filed, and the claim is time-barred.

☐ Second Defense — Lack of Standing; Failure to Prove Ownership and Chain of Assignment. Plaintiff is not the original creditor and has failed to plead or prove that it owns the alleged debt and is the real party in interest under Ariz. R. Civ. P. 17(a). Plaintiff must establish a complete, unbroken chain of assignment from the original creditor to Plaintiff, including each bill of sale and assignment specifically identifying Defendant's account. Absent such proof, Plaintiff lacks standing to maintain this action.

☐ Third Defense — Failure to State a Claim. The Complaint fails to state a claim upon which relief can be granted and is subject to dismissal under Ariz. R. Civ. P. 12(b)(6).

☐ Fourth Defense — FDCPA Violations; Failure to Validate. Plaintiff and/or its predecessors are "debt collectors" subject to the federal Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq., and failed to provide the validation notice and verification required by 15 U.S.C. § 1692g and/or engaged in false, deceptive, abusive, or unfair collection practices in violation of 15 U.S.C. §§ 1692d, 1692e, and 1692f, including filing or threatening suit on a time-barred or unverified debt.

☐ Fifth Defense — Plaintiff Not Licensed to Collect in Arizona. Plaintiff and/or its predecessors operate as a "collection agency" within the meaning of A.R.S. § 32-1001(2) and were required to be licensed by the Arizona Department of Financial Institutions under A.R.S. § 32-1001 et seq. Plaintiff has failed to plead or prove that it held a valid Arizona collection-agency license at all relevant times and is therefore barred from maintaining this action. [Verify whether Plaintiff/assignor is exempt under A.R.S. § 32-1004 (e.g., attorneys, banks, and certain financial institutions).]

☐ Sixth Defense — Payment, Accord and Satisfaction, Set-off, Discharge. The alleged debt has been paid, satisfied, settled, released, discharged (including by discharge in bankruptcy), set off, or otherwise extinguished, in whole or in part. Ariz. R. Civ. P. 8(c).

☐ Seventh Defense — No Account Stated; No Agreement to the Balance. Defendant never received, reviewed, or assented to the balance alleged and never agreed that the stated sum was a true and correct statement of the account.

☐ Eighth Defense — Statute of Frauds. To the extent Plaintiff relies on an agreement required to be in writing, the claim is barred by the Statute of Frauds, A.R.S. § 44-101.

☐ Ninth Defense — Erroneous or Unauthorized Amount; Unauthorized Fees; Usury. The amount claimed is incorrect, inflated, or includes interest, fees, or charges not authorized by any agreement, unconscionable, or usurious. Plaintiff must itemize and substantiate every component of the amount demanded.

☐ Tenth Defense — Improper Service / Lack of Personal Jurisdiction / Improper Venue. Service of process was insufficient or defective; this Court lacks personal jurisdiction over Defendant; and/or venue is improper. Ariz. R. Civ. P. 12(b); A.R.S. § 12-401.

☐ Eleventh Defense — Failure to Mitigate. Plaintiff and/or its predecessors failed to take reasonable steps to mitigate the damages alleged.

☐ Twelfth Defense — Hearsay; Lack of Foundation for Account Records. Plaintiff's account records, affidavits, and computer printouts are inadmissible hearsay and lack the foundation required for the business-records exception under Ariz. R. Evid. 803(6) and 902(11). Plaintiff cannot establish the records through a witness with personal knowledge of the original creditor's record-keeping practices.

☐ Thirteenth Defense — Reservation of Right to Amend. Defendant reserves the right to assert additional affirmative defenses, counterclaims, cross-claims, or third-party claims that become known through investigation or discovery, consistent with Ariz. R. Civ. P. 13, 14, and 15.

IV. DEMAND FOR DOCUMENTATION AND STRICT PROOF

11. Defendant demands that, before judgment, Plaintiff produce admissible evidence of each of the following:

a. The signed account agreement, cardholder agreement, or contract under which the alleged debt arose, with all amendments and change-of-terms notices;

b. A complete set of account statements from inception through charge-off, evidencing the transactions, charges, payments, interest, and fees making up the balance claimed;

c. An itemization of the principal, interest, fees, and other charges comprising the amount demanded, with the contractual or statutory authority for each;

d. The complete chain of title — every bill of sale, assignment, and account-transfer document from the original creditor through each intermediate owner to Plaintiff — with the account-level data showing Defendant's account was transferred; and

e. Proof that Plaintiff is the present owner and real party in interest entitled to enforce the alleged debt.

V. NOTICE OF POTENTIAL FDCPA COUNTERCLAIM

12. Defendant gives notice that the facts of this matter may give rise to a counterclaim against Plaintiff and/or its predecessors under the Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq., including claims for actual damages, statutory damages up to $1,000, and attorney's fees and costs under 15 U.S.C. § 1692k, and may also support a claim under the Arizona Consumer Fraud Act, A.R.S. § 44-1521 et seq.

☐ Defendant asserts no counterclaim at this time and reserves all rights.
☐ Defendant asserts the counterclaim set forth in the attached/following pleading.

VI. PRAYER FOR RELIEF

WHEREFORE, Defendant respectfully requests that this Court:

A. Dismiss Plaintiff's Complaint with prejudice and order that Plaintiff take nothing;

B. Enter judgment in favor of Defendant on all claims;

C. Award Defendant its taxable costs under A.R.S. § 12-341 and, where authorized by contract or statute, reasonable attorney's fees under A.R.S. § 12-341.01;

D. Grant Defendant any counterclaim relief asserted herein; and

E. Grant such other and further relief as the Court deems just and proper.

VII. JURY DEMAND

☐ Yes — Defendant demands a trial by jury on all issues so triable, pursuant to Ariz. R. Civ. P. 38 and Ariz. Const. art. 2, § 23. (Not available in the small claims division.)

☐ No — Defendant does not demand a jury trial at this time.

VIII. SIGNATURE

RESPECTFULLY SUBMITTED this [____] day of [____________], 20[____].

/s/ [____________________________________]
[____________________________________]
☐ Defendant, self-represented ☐ Attorney for Defendant
Arizona Bar No. (if attorney): [____________]
[Street Address]
[City], AZ [____]
Telephone: ([____]) [____]-[________]
Email: [____________________________________]

IX. CERTIFICATE OF SERVICE

I certify that on the [____] day of [____________], 20[____], I served a true and correct copy of the foregoing Defendant's Answer and Affirmative Defenses on Plaintiff's counsel of record (or on Plaintiff, if unrepresented) in accordance with Ariz. R. Civ. P. 5, by the following method:

☐ AZTurboCourt / Court electronic-filing system
☐ U.S. Mail, first-class postage prepaid
☐ Email (electronic service where permitted)
☐ Hand Delivery

Addressed to:

[____________________________________]
[____________________________________]
[____________________________________]

/s/ [____________________________________]
[____________________________________]

ARIZONA PRACTICE NOTES

• Answer deadline: 20 days after service within Arizona; 30 days if served outside Arizona (Ariz. R. Civ. P. 12(a)(1)(A)).
• Courts: Justice court has exclusive original jurisdiction in civil actions of $10,000 or less (A.R.S. § 22-201); small claims division handles up to $3,500 (A.R.S. § 22-503), where attorneys are generally not allowed and there is no right of appeal or jury; Superior Court for amounts over $10,000.
• Statute of limitations on debt: written contract executed in Arizona, or credit card — 6 years (A.R.S. § 12-548(A)(2), per 2011 HB 2412); oral contract / stated or open account not evidenced by a writing — 3 years (A.R.S. § 12-543); sale of goods under the UCC — 4 years (A.R.S. § 47-2725); judgments — generally 10 years (renewable). Credit-card accrual is governed by Mertola, LLC v. Santos, 245 Ariz. 215 (2018) (first uncured missed payment). Confirm the governing characterization.
• Licensing: Collection agencies must be licensed by the Arizona Department of Financial Institutions under A.R.S. § 32-1001 et seq. ("collection agency" defined at § 32-1001(2); exemptions at § 32-1004, including attorneys and banks). Verify Plaintiff's status before relying on the licensing defense.
• Compulsory counterclaim: An FDCPA claim arising from the collection of this debt may be compulsory under Ariz. R. Civ. P. 13(a). The Arizona Consumer Fraud Act (A.R.S. § 44-1521 et seq.) carries a 1-year limitations period.

Sources and References

• Arizona Rules of Civil Procedure: https://www.azcourts.gov/rules/Home/RulesofCivilProcedure
• A.R.S. § 12-548 (written contract / credit card — 6 years): https://www.azleg.gov/ars/12/00548.htm
• A.R.S. § 12-543 (oral contract / open account — 3 years): https://www.azleg.gov/ars/12/00543.htm
• Mertola, LLC v. Santos, 245 Ariz. 215 (2018): https://www.azcourts.gov/Portals/0/OpinionFiles/Supreme/2018/CV-17-0109-PR%20Opinion.pdf
• A.R.S. § 32-1001 et seq. (Collection Agencies): https://www.azleg.gov/arsDetail/?title=32
• Arizona Consumer Fraud Act, A.R.S. § 44-1521 et seq.: https://www.azleg.gov/arsDetail/?title=44
• Arizona Justice Court / Small Claims jurisdiction: https://www.azcourts.gov/selfservicecenter/Small-Claims
• Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq.: https://www.ftc.gov/legal-library/browse/rules/fair-debt-collection-practices-act-text
• CFPB — time-barred debt: https://www.consumerfinance.gov/ask-cfpb/can-debt-collectors-collect-a-debt-thats-several-years-old-en-1423/