How to Settle Debt with Capital One (Before Court)
You can settle your Capital One debt at any stage of the lawsuit process. Respond to the lawsuit first to avoid default judgment, then send a realistic settlement offer. Always get your settlement agreement in writing before making any payments.
Settle Capital One DebtCapital One is one of the largest consumer and business credit lenders in the U.S. The company introduced mass marketing of credit cards in the mid-1990s. Since then, the business has grown to include traditional banking services, auto loans, and retail credit cards.
Millions of people use Capital One’s financial services, including credit cards and loans. Capital One offers loan products even to individuals with fair or poor credit scores.
Being Sued by Capital One? Respond Now
Don't let Capital One get a default judgment against you. File your Answer today and start negotiating a settlement for less than you owe.
Answer the LawsuitIf you owe a debt to Capital One, you’re not alone. Many people struggle to keep up with their credit card payments. You can reclaim your financial health and overcome your debt with Capital One.
How to Pay Down Capital One Debt Quickly
Capital One charges interest rates on its credit cards and loan products. Higher interest rates make debt harder to pay off. Most of your monthly payment goes toward interest and fees.
Increasing your monthly payment makes a bigger dent in your obligation. It also improves your credit score.
You can increase your payments in two ways. You can cut expenses or increase your income.
Reducing expenses works best if you can’t take on extra work. Identify cost savings measures like cutting down on dining out or entertainment.
If you can’t reduce expenses, consider getting an extra job. Use all earnings from additional work to pay off Capital One. The more you earn, the faster you’ll repay your debt.
Negotiate a Payment Plan with Capital One
If you’ve fallen behind on payments for several months, Capital One may negotiate a payment plan. You can reach an agreement to pay a set amount over a specific period.
Capital One usually stops future interest charges on the debt. However, they will close your account with them.
Payment plans last anywhere from a few months to a few years. The duration depends on the amount you owe and your ability to make repayments. Contacting Capital One for a repayment plan keeps you out of legal trouble. However, it may harm your credit score.
Settle Your Capital One Debt Before Court
If you don’t make arrangements with Capital One, they could sue you. If the case goes to court, a judge might award Capital One a default judgment.
A default judgment gives Capital One the right to pursue further collections activity. They can garnish your wages or freeze your bank account.
You must avoid a default judgment at all costs. Settle with Capital One before your court date.
Follow these three steps to settle your debt with Capital One:
- Respond to the lawsuit
- Send a settlement offer
- Get the settlement agreement in writing
Below, we’ll break down each step in detail.
Step 1: Respond to the Lawsuit
You can avoid losing your debt lawsuit when you file an Answer. Your Answer responds to the Complaint that Capital One filed against you. It addresses the grievances Capital One lists in the Complaint.
You may have specific reasons that prevent Capital One from obtaining a judgment. Make sure you list all of them.
An Answer protects you from automatic default judgment. The judge can’t automatically grant Capital One a judgment against you.
Responding to your debt lawsuit buys you time. You can work out a debt settlement agreement while the case is pending.
Our partner Solo can help you draft and file your Answer to Capital One’s lawsuit.
Step 2: Send a Settlement Offer
Determine how much you can afford to pay Capital One. Capital One may reject your offer if it’s too low. The bank might decide a judgment will collect more money.
Your offer should be realistic and fair. It should convince Capital One you’re serious about settling.
For instance, if your outstanding obligation is $2,000, offer a lump-sum settlement of $1,200. That’s 60% of the total debt.
Send an initial offer to start the debt settlement negotiation process. In your offer, you might say:
“I see you’re suing me for [$___] for [case number]. I don’t have that kind of money and I don’t agree with the amount. But I do have [$___] that I can pay within 30 days to settle the debt in full. Let me know if you accept.”
Capital One will consider your settlement offer. If they believe you should pay more, they’ll counteroffer with their own proposal.
You may go through several rounds of negotiation before reaching an agreement. Our partner Solo handles the settlement negotiation process for you.
Step 3: Get the Settlement Agreement in Writing
Get your deal in writing. You need documentation if Capital One tries to resume collections activity or changes its mind.
Your settlement agreement should include:
- The original debt amount
- The settlement amount agreed upon
- Payment terms and deadlines
- A statement that the debt is satisfied upon payment
- Signatures from both parties
Sometimes, negotiating debt settlement feels overwhelming, especially when facing a lawsuit. When that happens, reach out to professionals. You won’t have to worry about saying the wrong thing or hurting your case.
Settlement Example: How One Person Settled with Capital One
Freddy is being sued by Capital One for credit card debt. He responds to the lawsuit, giving himself time to work out a debt settlement. After investigating his debt and analyzing his finances, Freddy determines he can afford to settle at 75% of the original amount.
In his initial offer, Freddy states he can pay off 40% of the debt. This gives him room to negotiate. After several counteroffers, Capital One accepts a settlement at 65% of the debt.
How to Get a Capital One Lawsuit Dismissed
To get a Capital One lawsuit dismissed, these steps might help:
File a Written Answer
Filing an Answer helps you avoid a default judgment. It buys you time to work out a defense. Your Answer should straightforwardly respond to the lawsuit’s allegations.
Understand Who’s Suing You
Defenses vary depending on whether you’re dealing with Capital One or a debt buyer. Cases against original creditors like Capital One are harder to defend. However, debt buyers often lack sufficient documentation and witness testimony. That can be a significant defense.
Assert Your Affirmative Defenses
Affirmative defenses include arguing the statute of limitations has expired. You can also invoke a private arbitration clause. Affirmative defenses must be accurate and relevant to your case.
Lack of proper service can be a defense. However, if you’re already aware of the lawsuit, the service issue might be resolved.
Don’t Overshare in Your Answer
Respond accurately to the allegations without assuming or adding unnecessary details. Avoid including excessive information. Oversharing can be detrimental to your case.
Consider Settling with Capital One
If defending the case isn’t feasible, negotiate a settlement for less than the claimed amount. Settlement can be a practical solution.
Our partner Solo makes it easy to settle debt with Capital One and other creditors.
Prepare for the Long Haul
If you choose to go to trial, prepare for a lengthy process. Trials often take six to twelve months or more.
How Solo Can Help You Settle Capital One Debt
Solo is a tech-based approach to debt settlement. The software sends and receives debt settlement offers on your behalf. It helps you negotiate the best deal for your circumstance.
Once an agreement is reached, Solo helps you manage the documentation. It forwards your payment to Capital One for you. Your personal financial information stays protected.
You can use Solo to respond to a debt lawsuit and send letters to collectors. You can even settle a debt through the platform.
Solo’s Answer service is a step-by-step web app. It asks you all necessary questions to complete your Answer. Upon completion, an attorney reviews your document. Then Solo files it for you.
Solo simplifies and streamlines the process of settling your debt. No matter where you are in the debt collection process, Solo helps you resolve your debt.