Opinion
No. CV 04 4000311 S
December 8, 2005
MEMORANDUM OF DECISION
This is an action to collect a credit card debt. The defendant entered into a credit card agreement with First USA Bank and is in default of the agreement that he would pay the amounts charged on the credit card. First USA Bank assigned the debt to the plaintiff, Unifund CCR Partners (Unifund) who commenced this action for collection.
Unifund filed a motion for summary judgment which was granted as to liability only on March 21, 2005 (Scholl, J). The matter thence came to a hearing in damages on December 7, 2005. Both parties were represented by counsel who stipulated that the Court could take the matter on the papers (trial briefs and attachments thereto). The attachments included the credit card statements, plaintiff's interrogatories and answers thereto, and various correspondence concerning a dispute between the defendant and Norwegian Cruise Lines over a trip which the defendant booked and paid for by a charge to his credit card.
The issue with the cruise line began when the defendant charged $4,236 for a cruise on Norwegian Cruise Lines (Norwegian). The defendant was dissatisfied with the cruise and sought a refund of the $4,236 from Norwegian. When that attempt was unsuccessful he turned to First USA Bank who ultimately issued him a credit of $806.88. After crediting his account for $806.88, the defendant's account balance was $6,084.61. He was notified of this credit by letter from First USA Bank dated November 8, 2001. (Attachment C, p. 31.) The defendant thereafter continued using his card charging various purchases and making payments. He made his last account payment on August 9, 2002 leaving an account balance of $4,658.33. On March 31, 2003 First USA Bank "charged off" the account because of the defendant's failure to make payments. At the time of charge off the balance due was $5,468.94. Thereafter First USA Bank assigned the debt to Unifund, who brought suit for collection.
The defendant claims that when he received notice in April 2003, that his account was $0.00 because of a "charge-off" of principal and interest, that meant he did not owe any money on his account and was no longer obligated to pay it. The term "charge off" of course means no such thing. It is simply transferring the account to an unpayable category, and turning the account over for collection.
There is no logical reason to think the credit card debt was forgiven, nor has the defendant logically advanced any such reason.
His claim that the final statement showing a zero balance is an accord and satisfaction is likewise untenable. He never tendered any final payment in satisfaction of the debt. There was no discussion of settling the debt. The defendant simply stopped making account payments and there are no elements of accord and satisfaction in this scenario. Also, accord and satisfaction was not pled as required by § 10-50 of the Practice Book. Raising it in a hearing in damages brief is inappropriate.
Judgment shall enter in favor of the plaintiff in the amount of $5,468.94 plus interest of $1,430.88 for a total judgment of $6,899.82, plus costs as assessed by the clerk. (A Bill of Costs is appended to the plaintiff's summary page.) Interest is computed at the statutory rate of 10% from August 9, 2002 through December 6, 2005.