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

STATE OF MINNESOTA DISTRICT COURT

[____] JUDICIAL DISTRICT — COUNTY OF [____________]

Case Type: Consumer Credit Contract

Court File No. [____________]

DEFENDANT'S ANSWER AND AFFIRMATIVE DEFENSES

Served Pursuant to Minn. R. Civ. P. 8 and 12

Defendant, [____________] ("Defendant"), appearing [☐ pro se / ☐ by and through undersigned counsel], for Defendant's Answer to the Complaint of Plaintiff, [____________] ("Plaintiff"), states and alleges as follows:

I. PRELIMINARY STATEMENT AND RESERVATION OF RIGHTS

1. Defendant serves this Answer within the twenty-one (21) day period prescribed by Minn. R. Civ. P. 12.01. Defendant reserves all rights, defenses, and objections available under the Minnesota Rules of Civil Procedure, including those enumerated in Rule 12.02.

2. By serving 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. Defendant expressly preserves the right to raise any applicable motion, defense, or objection.

3. Defendant does not have possession of the underlying account documents and demands that Plaintiff produce strict legal proof of each element of its claim, including 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 is without 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 is without 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 is without 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 is without 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 is without 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 is without knowledge or information sufficient to form a belief as to the truth of this allegation and therefore denies it.

10. Pursuant to Minn. R. Civ. P. 8.02, Defendant denies each and every allegation of the Complaint not expressly admitted above and demands strict proof thereof.

III. AFFIRMATIVE DEFENSES

Without assuming any burden of proof not imposed on Defendant by law, and expressly reserving the right to amend or supplement under Minn. R. Civ. P. 15 as discovery proceeds, Defendant asserts the following affirmative defenses under Minn. R. Civ. P. 8.03. Defendant should select only those defenses supported by the facts; pleading clearly inapplicable defenses may be subject to Minn. R. Civ. P. 11.

☐ First Defense — Statute of Limitations. Plaintiff's claim is barred, in whole or in part, by the applicable statute of limitations. An action on a consumer debt primarily for personal, family, or household purposes must be commenced within six (6) years under Minn. Stat. § 541.053. The alleged debt accrued more than six years before this action was commenced, 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. Plaintiff must establish a valid and complete chain of assignment from the original creditor to Plaintiff, including each bill of sale and assignment document, with evidence that Defendant's particular account was included in each transfer. Absent such proof, Plaintiff lacks standing to bring or maintain this action. See Minn. Stat. § 548.101(a)(5).

☐ 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 Minn. R. Civ. P. 12.02(e).

☐ 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 — Licensing / Registration Issue (use only if legally material). Subject to the definitions and exceptions in Minn. Stat. §§ 332.31–332.44, § 332.33, subd. 1 requires a person conducting business as a collection agency or debt buyer to hold a collection-agency license and requires a person acting under that authority, or as a collector, to register. Subdivision 2 makes specified unlicensed or unregistered conduct a misdemeanor; § 332.33 does not itself require a collection complaint to plead licensure or make noncompliance an automatic bar to suit. Plead a defense, counterclaim, or remedy only after verifying the actor's status and identifying separate current authority that makes the violation material in this action.

☐ Sixth Defense — Payment, Accord and Satisfaction, Discharge. The alleged debt has been paid, satisfied, settled, released, discharged (including by discharge in bankruptcy), or otherwise extinguished, in whole or in part.

☐ 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. The elements of an account stated are not satisfied.

☐ 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, Minn. Stat. § 513.01.

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

☐ Tenth Defense — Improper Service / Lack of Personal Jurisdiction. Service of process was insufficient or defective, and/or this Court lacks personal jurisdiction over Defendant. Minn. R. Civ. P. 12.02(b), (d), (e).

☐ 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. Plaintiff cannot establish the records through a witness with personal knowledge of the original creditor's record-keeping practices, and "robo-signed" affidavits are insufficient.

☐ 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 Minn. R. Civ. P. 15.

IV. DEMAND FOR DOCUMENTATION AND STRICT PROOF

11. Defendant demands that Plaintiff produce admissible evidence of each of the following. This demand mirrors the documentation that Minnesota law, Minn. Stat. § 548.101, requires a party to submit before it may obtain a default judgment in conciliation court or district court on an assigned consumer debt that was in default at the time of assignment:

a. A copy of the written contract between Defendant and the original creditor or, if no written contract exists, other admissible evidence establishing the terms of the account relationship, including all amendments and change-of-terms notices (Minn. Stat. § 548.101(a)(1));

b. Admissible evidence establishing that Defendant owes the debt (Minn. Stat. § 548.101(a)(2));

c. A complete set of monthly or periodic account statements from inception through charge-off, and admissible evidence establishing that the amount claimed is accurate, including the balance owed at charge-off or first assignment and a breakdown of any post charge-off fees, interest, and charges (Minn. Stat. § 548.101(a)(4));

d. Admissible evidence establishing a valid and complete chain of assignment of the debt from the original creditor to Plaintiff, including documentation or a bill of sale evidencing the assignment, with evidence that Defendant's particular account was included in the assignment referenced in that documentation or bill of sale (Minn. Stat. § 548.101(a)(5)); 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 but not limited to claims for actual damages, court-allowed additional damages up to $1,000 in an individual action and, upon a successful action, costs and a reasonable attorney's fee under 15 U.S.C. § 1692k, for conduct such as filing suit on a time-barred or unverified debt, failing to provide § 1692g validation, or using false, deceptive, or unfair means to collect.

☐ Defendant asserts no counterclaim at this time and reserves all rights.
☐ Defendant asserts the FDCPA 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 the costs and disbursements of this action and, to the extent permitted by law or contract, reasonable attorney's fees;

D. Grant Defendant any counterclaim relief asserted herein; and

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

VII. JURY DEMAND

☐ Yes — Defendant demands a trial by jury on all issues so triable, pursuant to Minn. R. Civ. P. 38 and Minn. Const. Art. I, § 4.

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

VIII. SIGNATURE

Dated: [__/__/____]

Respectfully submitted,

/s/ [____________________________________]
[____________________________________]
☐ Defendant, pro se ☐ Attorney for Defendant
Minnesota Attorney Registration No. (if attorney): [____________]
[Street Address]
[City], Minnesota [____]
Telephone: ([____]) [____]-[________]
Email: [____________________________________]

IX. CERTIFICATE OF SERVICE

I hereby certify that on [__/__/____], I served a true and correct copy of the foregoing Defendant's Answer and Affirmative Defenses upon Plaintiff's counsel of record (or upon Plaintiff, if unrepresented) in accordance with Minn. R. Civ. P. 5 and Minn. Gen. R. Prac. 14, by the following method:

☐ Minnesota eFile & eServe (MNCIS / e-filing system)
☐ U.S. First-Class Mail, postage prepaid
☐ Personal Delivery
☐ Email (by agreement / where permitted)

Addressed to:

[____________________________________]
[____________________________________]
[____________________________________]

/s/ [____________________________________]
[____________________________________]

MINNESOTA PRACTICE NOTES

• Answer deadline: Minnesota commences a civil action by SERVICE, often before filing ("hip-pocket" service). A defendant must SERVE a written Answer within 21 days after service of the Summons. Minn. R. Civ. P. 12.01 (amended effective January 1, 2020; the prior rule provided 20 days). Do not wait for a court file number. Calendar the deadline from the date of service.
• Courts: District Court has general jurisdiction. Conciliation Court (small claims) handles lower-value claims; the documentation requirements of Minn. Stat. § 548.101 apply in BOTH conciliation court and district court. Verify the court named in the Summons and the conciliation-court jurisdictional limit.
• Statute of limitations on consumer debt: 6 years under Minn. Stat. § 541.053. After expiration, payment, bankruptcy discharge, or oral or written reaffirmation does not revive the period. Judgments use a separate 10-year period (Minn. Stat. § 541.04). Confirm accrual and any tolling.
• Assigned consumer debt documentation (§ 548.101): Minnesota requires a debt buyer to submit the contract/account terms, proof the defendant owes the debt, proof the amount is accurate (charge-off balance plus a breakdown of post-charge-off fees/interest), and a valid and complete chain of assignment, BEFORE obtaining a default judgment. A timely Answer forces Plaintiff to prove these elements on the merits.
• Licensing: Subject to the definitions and exceptions in §§ 332.31–332.44, Minnesota requires collection agencies and debt buyers to be licensed and collectors to register with the Department of Commerce. Section 332.33 makes specified unlicensed or unregistered conduct a misdemeanor but does not itself create an automatic dismissal rule. Verify status and separate remedy authority before pleading a licensing defense.
• Compulsory counterclaim: An FDCPA claim arising from the collection of this debt may be compulsory under Minn. R. Civ. P. 13.01.

Sources and References

• Minnesota Rules of Civil Procedure: https://www.revisor.mn.gov/court_rules/cp/
• Minn. Stat. § 541.053 (6-year limitation — consumer debt): https://www.revisor.mn.gov/statutes/cite/541.053
• Minn. Stat. § 541.04 (judgments — 10 years): https://www.revisor.mn.gov/statutes/cite/541.04
• Minn. Stat. § 548.101 (assigned consumer debt default judgments): https://www.revisor.mn.gov/statutes/cite/548.101
• Minn. Stat. § 332.33 (licensing and registration — collection agencies and debt buyers): https://www.revisor.mn.gov/statutes/cite/332.33
• Minn. Stat. §§ 332.31–332.44 (collection agencies): https://www.revisor.mn.gov/statutes/cite/332.31
• Minnesota Attorney General — Debt Buyers: https://www.ag.state.mn.us/consumer/publications/debtbuyers.asp
• Minnesota Attorney General — Credit Handbook (Answering a Lawsuit): https://www.ag.state.mn.us/consumer/handbooks/CreditHnbk/CH5.asp
• 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 — debt that is several years old / time-barred debt: https://www.consumerfinance.gov/ask-cfpb/can-debt-collectors-collect-a-debt-thats-several-years-old-en-1423/