UNJUST ENRICHMENT IN DEBT COLLECTION CASES
Possibly Susie goes to the nail salon, gets her manicure, and doesn’t pay her Capital One bill for the card she used to um, enrich her fingers. That would be bad.
Ok, Jeopardy style, the question is answered as a question.
- Did the creditor card company know or should know that you could never pay off the balance (e.g. because you’re on social security?)
- Did the credit card company keep the card open even though they knew you would inevitably default?
- Did the credit card company fail to close the account?
- Did you make a good faith effort to pay down the debt?
- Did you attempt to work out an agreement with the credit card company?
If so, you may have “mitigation and unjust enrichment” defenses.
Mitigation means that, even though you have been harmed by the actions on another, you still have a duty to try and limit the damage – even though initially it was the fault of another person.
An example would be if someone broke the water main to your house and water was spilling everywhere. Of course that would lead to water damage of your house and furniture. Mitigation means you would have to turn your water off until the problem is fixed, rather than let the water continue to flow and cause much more damage.
Another “unjust enrichment” definition implies fraud–
Unjust enrichment occurs when the person sought to be charged has wrongfully secured a benefit or has passively received one which it would be unconscionable to retain. A person is unjustly enriched when he obtains such a benefit by fraud, duress, or the taking of an undue advantage.
If you are in a situation where you need to defend a debt collection lawsuit, phone Axsmith Law LLC at (202) 285-5415 for debt relief options.