What to Do When Your Credit Card Company Sues You: A Guide to Legal Action

by | Jun 16, 2023

Facing a lawsuit from your credit card company can be a stressful and overwhelming experience. However, it's crucial to remember that you have legal rights and options available to you. In this article, we will provide you with a comprehensive guide on what to do when your credit card company sues you, helping you navigate through the legal process and make informed decisions.


1. Understanding Credit Card Lawsuits


1.1 Reasons for Credit Card Lawsuits


Credit card companies may file lawsuits for various reasons, such as non-payment of debts, breach of contract, or fraudulent activity. Understanding the specific reason for the lawsuit is essential in formulating an appropriate response.


1.2 Legal Process and Timelines


Credit card lawsuits follow a specific legal process, including the service of a summons and complaint, filing a response, and attending court hearings. Familiarize yourself with the timelines and deadlines associated with each step to ensure compliance with the legal requirements.


2. Responding to the Lawsuit


2.1 Read and Understand the Summons and Complaint


Carefully read the summons and complaint documents served to you. These documents outline the creditor's claims against you and provide instructions on how to respond. Pay attention to deadlines and any required actions.


2.2 Seek Legal Advice


Consulting with an attorney experienced in debt and credit card lawsuits is highly recommended. They can provide personalized guidance based on your specific situation, explain your legal rights, and help you determine the best course of action.


2.3 Consider Settlement Options


Explore the possibility of reaching a settlement with your credit card company. This may involve negotiating a reduced payment amount, a payment plan, or alternative resolutions that can help resolve the lawsuit outside of court.


2.4 Prepare and File a Response


Prepare a response to the lawsuit within the designated timeframe. Your response should address each allegation made by the creditor and assert any defenses or counterclaims you may have. Be thorough and accurate in your response.


3. Building a Defense Strategy


3.1 Gather Evidence


Collect all relevant documents and evidence to support your case. This may include credit card statements, payment records, correspondence with the credit card company, or evidence of fraudulent activity.


3.2 Challenge the Creditor's Claims


Examine the creditor's claims and challenge them if you believe there are inaccuracies or discrepancies. The


 burden of proof lies with the creditor, and it's important to assert any defenses or counterarguments against their allegations.


3.3 Statute of Limitations


Be aware of the statute of limitations for credit card debt lawsuits in your jurisdiction. If the debt is past the statute of limitations, you may have a valid defense and can assert that the lawsuit is time-barred.


3.4 Dispute Errors or Fraudulent Charges


If the credit card debt includes errors or fraudulent charges, gather evidence to support your claim and dispute those specific charges. Providing evidence of inaccuracies or fraudulent activity can weaken the creditor's case against you.


4. Navigating the Court Process


4.1 Attend Court Hearings


Attend all court hearings as required. Be punctual and dress appropriately. Follow any instructions provided by the court and maintain respectful behavior throughout the proceedings.


4.2 Mediation and Settlement Conferences


Participate in mediation or settlement conferences if they are offered. These alternative dispute resolution methods can provide an opportunity to negotiate a resolution with the credit card company and potentially avoid a trial.


4.3 Trial Proceedings


If the lawsuit goes to trial, present your case diligently. Follow your attorney's guidance, present evidence, and articulate your defenses or counterclaims clearly. Be prepared to answer questions from the judge or opposing counsel.

5. Dealing with Judgments


5.1 Payment Plans

If a judgment is entered against you, work with the court or the credit card company to establish a reasonable payment plan. Ensure the terms are manageable within your financial means.

5.2 Negotiating a Settlement

Even after a judgment is entered, you may still have an opportunity to negotiate a settlement with the credit card company. Explore this option if it aligns with your financial circumstances and objectives.

5.3 Bankruptcy Considerations

If you are overwhelmed by debts and unable to reach a favorable resolution, consult with a bankruptcy attorney to explore the possibility of filing for bankruptcy. This option should be carefully considered, as it has long-term implications on your creditworthiness.

Final Thoughts

Facing a credit card lawsuit can be daunting, but being proactive and informed can significantly improve your chances of a favorable outcome. Understand the legal process, seek legal advice, respond appropriately, build a solid defense strategy, and consider settlement options. Remember that you have rights and options available to you throughout the process.


  1. Can I handle a credit card lawsuit without an attorney?

While it is possible to handle a credit card lawsuit without an attorney, seeking legal advice is highly recommended. An attorney can provide guidance based on their expertise and help protect your rights.

  1. What if I cannot afford an attorney for the lawsuit?

Consider reaching out to legal aid organizations, pro bono services, or nonprofit legal clinics that provide assistance to individuals who cannot afford an attorney. They may be able to provide guidance or connect you with resources.

  1. Can I negotiate a settlement even after a lawsuit has been filed?

Yes, it is possible to negotiate a settlement even after a lawsuit has been filed. Credit card companies may be open to settlement discussions to avoid the costs and uncertainties of a trial.

  1. Will a credit card lawsuit affect my credit score?

A credit card lawsuit itself may not directly impact your credit score. However, the outcome of the lawsuit, such as a judgment or unpaid debt, can have negative effects on your credit score.

  1. What are the consequences of ignoring a credit card lawsuit?

Ignoring a credit card lawsuit can result in a default judgment being entered against you, which may lead to wage garnishment, bank account levies, or other enforcement actions. It's important to respond and address the lawsuit in a timely manner.