How to Settle Debt With Target National Bank (2024 Guide)
If Target National Bank has sued you, filing an Answer before the deadline is critical to avoid default judgment. You can negotiate a settlement for less than you owe, especially since debt collectors prefer settling over going to court. Get help responding to the lawsuit and protecting your rights from wage garnishment and bank account seizures.
Answer Your LawsuitGetting sued can be scary. Take a breath and remember you have options.
If Target National Bank has sued you, do not ignore it. Ignoring the lawsuit will make things worse for your credit and finances.
Respond to Target National Bank Before the Deadline
Time is running out to file your Answer and avoid default judgment. Get help drafting a proper response to your Target National Bank lawsuit today.
Respond to LawsuitYou can effectively respond to the lawsuit and resolve your debt issue. We have helped many credit card holders settle their debts and avoid default judgments.
In this guide, you will learn who Target National Bank is. You will also discover how to engage with them and protect your rights.
What is Target National Bank?
Target National Bank was founded in 1994 as Retailers National Bank. The company changed its name to Target National Bank in 2004.
The bank issues and services the Target Red Card and Target Card Visa. When Target customers fall behind on payments, Target National Bank initiates the debt collection process.
In 2013, TD Bank USA acquired Target National Bank. TD Bank USA is known for aggressively collecting debts when borrowers fall behind.
Even if Target National Bank is the plaintiff in your lawsuit, TD Bank USA typically drives the legal action.
Read Online Reviews of Target National Bank
Want to know what other Target customers experienced? Check out these online reviews:
- Target National Bank reviews on WalletHub
- Target National Bank reviews on Better Business Bureau
Reviews of Target National Bank are mixed. However, do not let that stop you from communicating with them.
Debt collectors are generally willing to work with people to resolve debt issues. If you have concerns about negotiating alone, our partner Solo can help you respond and settle effectively.
How to Settle Your Debt With Target National Bank
Target National Bank wants to close accounts quickly while collecting payment. The debt collector will be open to helping you get back on track.
If you owe a large debt, Target National Bank may negotiate a payment plan. They may also accept a lump sum payoff for less than you owe.
Negotiating a Settlement
You can negotiate on your own. However, dealing with debt collectors can be stressful and confusing.
Many consumers successfully negotiate settlements for 40-60% of the original debt. Target National Bank would rather collect something than nothing at all.
When negotiating, start with a lower offer. You can always increase your offer later if needed.
Make sure any settlement agreement is in writing before you pay. Never give collectors direct access to your bank account.
Payment Plans vs. Lump Sum Settlements
Payment plans let you pay over time in monthly installments. Lump sum settlements require one payment but often result in bigger discounts.
If you can gather funds from savings or family, a lump sum settlement saves you more money. Payment plans work better if you have steady income but limited savings.
How to Respond When Target National Bank Sues You
A complaint filed against you is not a finding of guilt. The complaint merely kicks off a lawsuit.
Once you receive the complaint, you must respond. Here are three things you need to know:
File an Answer Before the Deadline
Your response to any complaint is called an Answer. The Answer does not need to be long or complicated.
You simply indicate whether you admit or deny each numbered paragraph in the complaint. File your Answer before the deadline, usually 10 to 30 days depending on your state.
If you do not answer in time, Target National Bank will obtain a default judgment. Default judgments allow them to garnish your wages or freeze your bank accounts.
Our partner Solo can help you draft and file a proper Answer to protect yourself from default judgment.
Make Them Prove Their Case
Cases of mistaken identity happen in debt collection lawsuits. Even if you believe you owe money, debt collectors often overreach.
Many times, debt collectors cannot provide necessary documentation to prove their case. By answering the lawsuit and requesting documentation, you can expose their lack of preparation.
Request the original credit card agreement, account statements, and proof of ownership. Without these documents, Target National Bank may struggle to win their case.
Check the Statute of Limitations
Every state has a statute of limitations for debt collection lawsuits. The time period varies from state to state, typically ranging from three to six years.
If Target National Bank filed suit after the statute of limitations expired, you have a strong defense. List violation of the statute of limitations as an affirmative defense in your Answer.
Even if the statute has not expired, knowing how much time has passed helps you negotiate. Older debts are harder to prove and collect.
Why Target National Bank May Settle
Companies like Target National Bank know that 90% of consumers they sue never respond. When you file an Answer, you demonstrate you are ready to fight.
Target National Bank may become more willing to settle when they realize you are serious. Going to court costs them time and money.
Settling for 50% of the debt is better for them than spending thousands on legal fees. Use this knowledge to your advantage when negotiating.
What Happens If You Ignore the Lawsuit
Ignoring a lawsuit from Target National Bank is the worst thing you can do. If you do not respond, they will win a default judgment automatically.
With a default judgment, Target National Bank can:
- Garnish up to 25% of your wages
- Freeze and seize money from your bank accounts
- Place liens on your property
- Damage your credit score for seven years
Default judgments are difficult and expensive to overturn. Responding to the lawsuit is always your best option.
Your Rights Under the Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act (FDCPA) protects you from abusive debt collection practices. Target National Bank must follow these rules when collecting debts.
Debt collectors cannot:
- Call you before 8 AM or after 9 PM
- Contact you at work if you tell them not to
- Harass, threaten, or use abusive language
- Lie about the amount you owe
- Threaten legal action they cannot or will not take
If Target National Bank violates the FDCPA, you can sue them. You may recover up to $1,000 in damages plus attorney fees.
Document all communications with debt collectors. Save letters, record call times, and take notes during conversations.
Should You Consider Bankruptcy?
If Target National Bank is just one of many debts you cannot pay, bankruptcy might be an option. Chapter 7 bankruptcy can eliminate credit card debt entirely.
Chapter 13 bankruptcy creates a payment plan based on your income. Both options can stop lawsuits and wage garnishments immediately.
Bankruptcy seriously impacts your credit for seven to ten years. However, it may be your best option if you are drowning in debt.
Consult with a bankruptcy attorney to understand if you qualify. Many attorneys offer free consultations to review your situation.
Take Action Today
Do not wait to respond to a Target National Bank lawsuit. Every day you delay makes your situation worse.
File your Answer before the deadline to avoid default judgment. Request proof of the debt and check the statute of limitations.
Negotiate a settlement that works for your budget. Target National Bank would rather settle than go to court.
Our partner Solo can help you answer the lawsuit, negotiate a settlement, and protect your rights throughout the process.