Best Buy Credit Card Lawsuit? Here's What You Do Next

You opened the summons and your stomach dropped. Citibank, N.A. Is suing you over that Best Buy card you stopped paying eight months ago. The amount is bigger than you remember—late fees and interest piled on,and the court date is three weeks away.

Take a breath. You have options. The worst thing you can do is nothing.

Why Citibank Sues Over Best Buy Debt

Best Buy offers two credit cards: the My Best Buy Credit Card (store-only) and the My Best Buy Visa (anywhere). Both are issued by Citibank. When you default,typically after 120 to 180 days of no payments,Citibank can sue to collect. They're not bluffing. In 2023, Citibank filed over 80,000 collection lawsuits nationwide.

Citibank sues because it works. Roughly 70% of defendants never respond, which means Citibank wins by default. Once they have a judgment, they can garnish your wages, freeze your bank account, or place a lien on your property. That's why responding matters.

You Have 21 to 30 Days to Respond

The summons tells you how long you have to file an Answer,usually 21 days in some states, 30 in others. This is your deadline to formally respond to the lawsuit. Miss it and Citibank gets a default judgment without you ever stepping into court.

Your Answer is a document you file with the court that addresses each claim in the complaint. You don't need a lawyer to do this, though one can help. The goal is to dispute the allegations or raise defenses that force Citibank to prove its case.

What to Include in Your Answer

Your Answer should respond to each numbered paragraph in Citibank's complaint. You have three options for each claim:

• Admit: You agree with the statement.
• Deny: You dispute it.
• Deny due to lack of knowledge: You don't have enough information to admit or deny.

Unless you're absolutely certain a fact is true, deny it or claim lack of knowledge. Make Citibank prove the debt, the amount, and that they have legal standing to sue you.

Affirmative Defenses You Can Raise

After responding to each claim, list any affirmative defenses. These are legal reasons the lawsuit should be dismissed even if Citibank's facts are accurate. Common defenses include:

• Statute of limitations: In most states, creditors have 3 to 6 years to sue. If your last payment was seven years ago, the debt may be too old.
• Lack of standing: Citibank must prove it owns the debt. If they bought it from a third party, they need documentation.
• Payment or settlement: If you already settled or paid, they can't collect twice.
• Identity theft: If you didn't open the account, you're not liable.
• Improper service: If you weren't properly served the summons, the court may dismiss the case.

Don't worry about getting defenses "perfect." Raising them forces Citibank to do the work. Many debt buyers drop cases when defendants fight back.

Settlement Is Usually Your Best Move

If the debt is yours and the statute of limitations hasn't expired, settlement is often smarter than fighting. Citibank would rather get paid than drag out a lawsuit. You can typically settle for 40% to 60% of the balance, paid in a lump sum or over several months.

Start by calling the attorney listed on the summons. Say you're willing to settle but need a discount. They'll often counter at 70% or 80%. Push back. Ask if they'll accept half. If you can't afford a lump sum, propose monthly payments. Get everything in writing before you pay a dime.

What a Settlement Should Include

Your settlement agreement should state:

• The exact amount you'll pay
• The payment schedule (if applicable)
• That Citibank will dismiss the lawsuit once payment is complete
• That Citibank will report the account as "settled" or "paid" to credit bureaus

If they refuse to put it in writing, don't send money. Verbal promises mean nothing in court.

What Happens If You Do Nothing

Ignoring the lawsuit guarantees you lose. Citibank will file a motion for default judgment, and the court will grant it. Once they have a judgment, your options shrink. They can:

• Garnish your wages: In most states, they can take up to 25% of your take-home pay each paycheck.
• Freeze your bank account: They can drain your checking or savings account until the judgment is paid.
• Place a lien on your property: If you own a home, they can file a lien that gets paid when you sell or refinance.

Judgments also wreck your credit. They stay on your report for 7 years in most states, longer in others. That makes it harder to rent an apartment, get a car loan, or qualify for a mortgage.

Bankruptcy May Be the Right Call

If you owe more than $10,000 across multiple creditors, bankruptcy might make more sense than fighting one lawsuit at a time. A Chapter 7 bankruptcy wipes out most unsecured debts,including credit cards,in about four months. You don't pay anything back if you qualify.

Chapter 13 lets you repay debts over three to five years at a lower amount. It's useful if you have income but can't keep up with all your bills.

Bankruptcy isn't for everyone, but it's worth considering if lawsuits are piling up. You can check if you qualify for Chapter 7 bankruptcy in under two minutes using our free screener tool. If you're unsure which chapter fits your situation, learn more about how bankruptcy works here.

You Don't Need a Lawyer, But One Can Help

Most people handle debt lawsuits without an attorney. You can draft an Answer, negotiate settlement, and show up to court on your own. Courts have self-help resources, and many clerks will explain filing procedures (though they can't give legal advice).

That said, a lawyer can spot defenses you'd miss and negotiate harder. If the debt is large,say, $5,000 or more,or if Citibank has strong documentation, hiring a consumer rights attorney may pay for itself in settlement savings. Many offer free consultations.

File Your Answer, Then Negotiate

Your first priority is filing an Answer by the deadline. Once that's done, you have breathing room. Citibank can't get a default judgment, and you're in a position to negotiate.

If they refuse to settle at a number you can afford, show up to court on your hearing date. Bring any documentation that supports your case: payment records, identity theft reports, proof the statute of limitations has expired. Judges respect defendants who show up prepared.

You're not powerless. Creditors bank on you giving up. When you fight back, the math changes. They'd rather collect half now than spend months chasing a judgment they may never collect.