How Do You Respond to Being Sued by a Credit Card Company?


Quick Answer

When a creditor or debt collector pursues litigation, respond to the summons within the specified timeframe by filing an official answer to the court handling the lawsuit, Credit.com states. Otherwise, the creditor may win a default judgement, hold you accountable for legal fees and request permission to garnish wages or bank funds. Avoid admitting liability in the answer, as the company can then demand the full debt without proving you owe it.

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Full Answer

Consider consulting an attorney who offers free consultations for consumer debt cases, Credit.com advises. When possible, make it difficult for creditors to win a judgment by asking for detailed documentation, including the original signed agreement and a full timeline of the account balance. If a collection agency is suing, ask for agreement transfer documentation proving the company has the right to collect the debt. Without adequate documentation, creditors and collectors may not be able to prove you are liable or that they are entitled to collect from you.

If you intend to accept liability, immediately contact the creditor to discuss settlement options and stop the lawsuit, ABC News recommends. A settlement may require full payment or a percentage of the funds owed. In either case, request written documentation confirming that the settlement resolves the debt and negates the creditor’s right to pursue any further litigation for the specified account.

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