Michigan Courts Increase Requirements of Proof in Credit Card Cases

On February 18, 2010, the Michigan Court of Appeals released a decision that will have immediate impact upon our clients, particularly our credit card and debt buyer clients. The case involved increases in certain cases the level of proof necessary to obtain judgment in court. The case is Unifund CCR Partners v. Nishawn Riley, Michigan Court of Appeals Case No. 287599, Decided February 18, 2010. The court did not accept credit card monthly statements, showing payments made on the account, as proof of payments made on the account. The court now requires that in all credit card cases where a signed application is not available, that proof of payment, such as a copy of a payment check made to the credit card, is needed to prove that the debtor agreed to the account by making payments on same. The court is saying that copies of monthly statements showing payments is not sufficient. A copy of a payment check would be required, “as evidence that defendant made the asserted payments.”

For our debt buyer clients, there is now an increased level of proof of the assignment. The general contract, or batch assignment agreement, is no longer sufficient. A specific assignment, or affidavit supporting a specific assignment, should be supplied, that refers to the specific account number. Also, the court is requiring proof that the debtor was notified about the assignment. An affidavit from the original creditor regarding the specific assignment should be sufficient.