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

IN THE [☐ CIRCUIT COURT / ☐ CHANCERY COURT / ☐ GENERAL SESSIONS COURT] FOR [____________] COUNTY, TENNESSEE

Docket No. [____________]

DEFENDANT'S ANSWER AND AFFIRMATIVE DEFENSES

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

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

I. PRELIMINARY STATEMENT AND RESERVATION OF RIGHTS

1. Defendant timely files this Answer within the thirty (30) day period prescribed by Tenn. R. Civ. P. 12.01 (or timely appears and asserts these defenses if this matter proceeds by civil warrant in General Sessions Court). Defendant reserves all rights, defenses, and objections available under the Tennessee Rules of Civil Procedure, including those enumerated in Rule 12.02.

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. 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 Tenn. 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 Tenn. R. Civ. P. 15 as discovery proceeds, Defendant asserts the following affirmative defenses under Tenn. R. Civ. P. 8.03. Defendant should select only those defenses supported by the facts; pleading clearly inapplicable defenses may be subject to Tenn. 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. Under Tennessee law, an action on contracts not otherwise expressly provided for — including open accounts and most credit-card and consumer debt — must be commenced within six (6) years after the cause of action accrued (Tenn. Code Ann. § 28-3-109(a)(3)). An action for breach of a contract for sale of goods under the Uniform Commercial Code must be commenced within four (4) years (Tenn. Code Ann. § 47-2-725). The alleged debt accrued (and any last payment occurred) more than the applicable limitations 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. Plaintiff must establish a complete, unbroken chain of assignment from the original creditor to Plaintiff, including each bill of sale and assignment document specifically identifying Defendant's account. Absent such proof, Plaintiff lacks standing to bring or maintain this action and is not the real party in interest under Tenn. R. Civ. P. 17.01.

☐ 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 Tenn. R. Civ. P. 12.02(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 Under the Tennessee Collection Service Act. Under Tenn. Code Ann. § 62-20-105(a), no person shall commence, conduct, or operate any collection service business in Tennessee unless the person holds a valid collection service license issued by the Tennessee Collection Service Board. To the extent Plaintiff or its agents were required to be licensed and were not, Defendant raises that non-compliance. [Note: § 62-20-105(d)–(f) limits the use of a licensing violation as a defense — a debt or obligation collected by final judgment may not be set aside on the basis of lack of license, an alleged violator may cure by applying for a license, and the violation may subject the person to Board sanction but "may not be subject to other civil action or defense." See also Bradford v. LVNV Funding, LLC (6th Cir. 2015) (a debt buyer that collects only through a licensed collector or attorney need not itself be licensed). Verify scope before relying on this defense.]

☐ 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, Tenn. Code Ann. § 29-2-101, and the UCC Statute of Frauds, Tenn. Code Ann. § 47-2-201.

☐ 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 exceed the rate permitted by law. 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. Tenn. R. Civ. P. 12.02(2), (4), (5).

☐ 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 Tenn. R. Evid. 803(6). 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 Tenn. R. Civ. P. 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, together with all amendments and change-of-terms notices;

b. A complete set of monthly account statements from inception through charge-off, evidencing the transactions, charges, payments, interest, and fees that make 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 charge;

d. The complete chain of title to the alleged debt — every bill of sale, assignment, and account-transfer document from the original creditor through each intermediate owner to Plaintiff (including the date of each transfer and the names of all prior debt holders from charge-off forward) — together with the specific account-level data showing Defendant's account was among those 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 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 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 proper.

VII. JURY DEMAND

☐ Yes — Defendant demands trial by jury on all issues so triable, pursuant to Tenn. R. Civ. P. 38 and Tenn. Const. Art. I, § 6.

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

VIII. SIGNATURE

Respectfully submitted this [____] day of [____________], 20[____].

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

IX. CERTIFICATE OF SERVICE

I hereby certify that on the [____] day of [____________], 20[____], 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 Tenn. R. Civ. P. 5, by the following method:

☐ Court electronic-filing system (notice to all counsel of record)
☐ U.S. First-Class Mail, postage prepaid
☐ Certified Mail, Return Receipt Requested
☐ Hand Delivery
☐ Email (by agreement / where permitted)

Addressed to:

[____________________________________]
[____________________________________]
[____________________________________]

/s/ [____________________________________]
[____________________________________]

TENNESSEE PRACTICE NOTES

• Answer deadline: 30 days after service of the Summons and Complaint in Circuit and Chancery Court (Tenn. R. Civ. P. 12.01). In General Sessions Court, the defendant must APPEAR on the date stated on the civil warrant; there is no separate written-answer deadline, but defenses (including limitations) should be raised at the first appearance. Failure to answer or appear may result in a default judgment.
• Courts: General Sessions Court handles most collection cases up to $25,000 (no jury; bench trial); Circuit Court handles larger claims and appeals from General Sessions (tried de novo); Chancery Court has concurrent jurisdiction over certain matters. Confirm the court and the current jurisdictional limit.
• Statute of limitations on debt: contracts / open accounts (including most credit-card debt) — 6 years (Tenn. Code Ann. § 28-3-109(a)(3)), running from default / last payment; UCC contract for sale of goods — 4 years (§ 47-2-725); judgments and demand notes — 10 years (§ 28-3-110). Confirm characterization and accrual before relying on the defense.
• Licensing — Tennessee Collection Service Act: Under Tenn. Code Ann. § 62-20-105(a), a collection service must hold a valid license from the Tennessee Collection Service Board. However, § 62-20-105(d)–(f) substantially limits using a licensing violation as a defense (a debt collected by final judgment may not be set aside for lack of license; an alleged violator may cure by applying for a license; and the violation "may not be subject to other civil action or defense"). Under Bradford v. LVNV Funding (6th Cir. 2015), a debt buyer that collects only through a licensed collection agency or attorney need not itself be licensed. Verify scope before asserting the licensing defense.
• Debt-buyer pleading/proof requirements: Tennessee law requires plaintiffs suing on assigned/purchased consumer debt in General Sessions to plead and document the transfer/assignment history, original creditor, and authority to collect, and to provide supporting records before a default judgment may be entered (does not apply to original creditors/lienholders). Use this to challenge a debt buyer's proof; verify the current statute.
• FDCPA / state law interplay: The Tennessee Consumer Protection Act (Tenn. Code Ann. § 47-18-101 et seq.) may supplement the federal FDCPA (15 U.S.C. § 1692 et seq.). Assert federal FDCPA claims under 15 U.S.C. § 1692 et seq.
• Compulsory counterclaim: An FDCPA claim arising from the collection of this debt may be compulsory under Tenn. R. Civ. P. 13.01.

Sources and References

• Tennessee Rules of Civil Procedure, Rule 12.01 (30-day answer): https://www.tncourts.gov/rules/rules-civil-procedure/1201
• Tenn. Code Ann. § 28-3-109 (6-year contract / open account limitation): https://law.justia.com/codes/tennessee/title-28/chapter-3/part-1/section-28-3-109/
• Tenn. Code Ann. § 47-2-725 (UCC sale of goods — 4 years): https://law.justia.com/codes/tennessee/title-47/chapter-2/part-7/section-47-2-725/
• Tenn. Code Ann. § 62-20-105 (collection service license requirement): https://law.justia.com/codes/tennessee/title-62/chapter-20/section-62-20-105/
• Tenn. Code Ann. § 47-18-101 et seq. (Tennessee Consumer Protection Act): https://law.justia.com/codes/tennessee/title-47/chapter-18/
• Bradford v. LVNV Funding, LLC, 6th Cir. (2015): https://www.stites.com/resources/client-alerts/to-license-or-not-to-license/
• 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/
• AOC / Tennessee courts — The Lifecycle of Debt Collection (debt-buyer pleading requirements): https://www.tncourts.gov/sites/default/files/docs/The%20Lifecycle%20of%20Debt%20Collections.pdf