When to respond to a credit card lawsuit?

Despite your trepidation, the lawsuit won’t go away if you simply ignore it. Typically, the court requires you to send an answer, or response to the lawsuit, to the company that sued you within 20 to 30 days after you were served with the complaint.

Why do most credit card lawsuits end in default?

Most credit card lawsuits end in default judgment because consumers ignore the suit or file an insufficient or late answer. Your first concern is filing your answer in time. The length of time you have to file depends on state law.

Can a credit card company sue if you cant pay?

In fact, if your answer is just a list of reasons you can’t pay, the court will consider it an admission that you do, in fact, owe the debt and they’ll grant judgment for the credit card company. The complaint will contain a list of statements made by the credit card company.

Where can I find a credit card lawsuit form?

Search for forms. Many states have forms and instructions available for answering a credit card lawsuit, either online, at the court clerk’s office, or at legal aid clinics.

Where do I go to answer a credit card lawsuit?

Many states have forms and instructions available for answering a credit card lawsuit, either online, at the court clerk’s office, or at legal aid clinics. In some states, you may have received an answer form with your summons and complaint, or you may have to go to the clerk’s office in the court where the lawsuit was filed to get the form.

What happens if you get sued for credit card debt?

If it isn’t resolved, a lawsuit is only a matter of time. Credit card companies write off millions each year in uncollectible debt. If a lawsuit is filed, you MUST respond. If you don’t show up for the court proceeding, the judge automatically rules against you and will order you to pay the full amount.

What happens if a credit card company wins a judgment?

The court rules in favor of the credit card company. If the court rules in favor of the credit card company, you now have a judgment against you for a specific dollar amount. The credit company will then ask the judge to allow them to collect on the judgment.

When is a defense to a credit card debt lawsuit valid?

Often it is a valid defense even if you paid another party. For example, if your debt was sold and you accidently paid the wrong party, the new owner might be required to obtain the payment from the original creditor if you did not receive adequate notice of the debt transfer or sale.

Do you have to answer a civil summons for credit card debt?

If you settle the debt out of court, the creditors and their lawyers can withdraw the case. You can avoid the hassle of filing an answer formally with the court. If trying to reach a settlement does not work out or you decide you prefer to go to court, you must file an answer to the served summons.

Can a credit card company sue you for debt?

While your liability should be clear if your credit card company sues you directly, sometimes it’s not that straightforward. Debt collectors you’ve never heard of can purchase your debt and sue you for it, and the debt may be inflated by fees and penalties.

Who is the plaintiff in a credit card lawsuit?

The creditor is called the “plaintiff” in the legal documents. The complaint will contain all the allegations against you. These allegations have not been proven yet so they may not necessarily be true.

What happens if you ignore a credit card lawsuit?

If you’re served with a lawsuit from a credit card company or collection agency, you must act quickly to answer the lawsuit or you may lose by default. Despite your trepidation, the lawsuit won’t go away if you simply ignore it.

What’s the affirmative defense to a credit card lawsuit?

With an affirmative defense, you argue that even if everything the credit card company alleges against you is true, it should still lose the lawsuit. Here are some common affirmative defenses to credit card lawsuits: Statute of limitations—the debt is too old for a lawsuit.

Can a victim of identity theft sue a credit card company?

If you were a victim of identity theft and never applied for a credit card at all, this also can be raised as an affirmative defense. Many states such as New York require debt collection agencies to be licensed and registered in the state and include a license number in the complaint.

Why are there so many credit card lawsuits?

Many people think debt buyers prefer to avoid lawsuits to collect old credit card debts because it requires them to pay lawyers and incur costs of litigation. If this were true, however, credit card lawsuits would be far less common than is the case. In fact, there were nearly 200,000 credit card collection lawsuits filed in New York in 2011 alone.

When do you get court papers about a credit card lawsuit?

When you get court papers about a credit card lawsuit, you have a choice: take no action, or use the laws to level the playing field. The debt collectors have done everything possible to convince you they have all the power, but that’s not true.