Citibank Sued You? Here's How to Fight Back and Win

Citibank files more credit card lawsuits than almost any issuer in America. When you default on a Citi card, their legal machinery moves fast: missed payments, collections calls, then a lawsuit landing on your doorstep. Once that happens, you have roughly three weeks to decide if you'll fight or fold.

Most people fold. They ignore the papers, miss the court deadline, and wake up to a default judgment. Citibank wins automatically, then garnishes wages or freezes bank accounts. That's the path 70% of sued consumers take, and it costs them thousands.

You can take the other path. File a written Answer to the lawsuit, force Citibank to prove every claim, and negotiate from strength. Even if you owe the debt, responding buys you leverage. If you don't owe it—or if Citibank can't prove you do,you can win outright.

Why Citibank Sues So Often

Citibank is the world's largest credit card issuer. They manage millions of accounts, and when cardholders stop paying, they sue. Unlike smaller creditors who might sell debts to agencies, Citibank often keeps collection in-house through the first lawsuit phase.

Their legal teams are experienced, their documentation systems are robust, and they file lawsuits in bulk. But bulk lawsuits have a weakness: they rely on you staying silent. When you respond, the entire dynamic shifts.

Citibank typically sues when your account is 120 to 180 days past due. Before that, you'll get calls and letters. Once they sue, the clock starts ticking. You have 14 to 35 days to respond, depending on your state. Miss that deadline, and you lose by default.

What Happens If You Ignore the Lawsuit

Ignoring a Citibank lawsuit guarantees one outcome: you lose. The court enters a default judgment, which gives Citibank a legal claim to collect the debt plus interest, court costs, and attorney fees. That judgment is enforceable for years, sometimes decades.

Once they have a judgment, Citibank can:

• Garnish your wages: Up to 25% of your paycheck in most states.
• Freeze your bank account: They can drain your checking or savings without warning.
• Place a lien on property: Including your home in some states.
• Damage your credit: The judgment stays on your credit report for seven years.

These consequences are real and immediate. Wage garnishment starts within weeks of the judgment. Bank freezes happen overnight. You can't negotiate once a judgment is entered. You're no longer a defendant with rights. You're a debtor with a court order against you.

The Three Steps to Fight Back

Fighting a Citibank lawsuit isn't about legal genius. It's about following a simple process that most people skip. You don't need a lawyer to start, though one helps if the case gets complex. You need to file an Answer, assert defenses, and force Citibank to prove their case.

Step 1: File a Written Answer

The Answer is your official response to the lawsuit. It's a legal document you file with the court that addresses each claim Citibank made in their Complaint. The Complaint is the document that came with your lawsuit papers, listing what you allegedly owe and why.

In your Answer, you respond to each numbered paragraph in the Complaint with one of three options:

• Admit: You agree the claim is true.
• Deny: You dispute the claim.
• Deny for lack of knowledge: You don't have enough information to admit or deny.

Deny everything you reasonably can. If Citibank claims you owe $8,347.23, deny it unless you've verified that exact amount yourself. If they claim you opened the account in 2019, deny it if you're not certain of the date. This isn't dishonest. It forces Citibank to provide proof, which they don't always have.

Your Answer must be filed within your state's deadline. In California, you have 30 days. In New York, 20 to 30 days depending on how you were served. In Texas, the Monday after 20 days from service. Check your summons for the exact deadline or look up your state's rules online.

Step 2: Assert Affirmative Defenses

Affirmative defenses are legal reasons Citibank should not win, even if you owe the debt. Include these in your Answer document. Common defenses against Citibank include:

• Statute of limitations: Most states bar lawsuits after 3 to 6 years from your last payment. If Citibank waited too long, the debt is unenforceable.
• Lack of standing: Citibank must prove they own the debt. If they sold it to a collection agency and then sued anyway, they lack standing.
• Improper service: If you weren't served correctly, the court may not have jurisdiction over you.
• Payment or settlement: If you already paid the debt or settled it, Citibank can't collect again.
• Mistaken identity: If this isn't your debt, say so explicitly.

The statute of limitations defense is the most powerful. Pull your credit report and check when you last made a payment. If it's been longer than your state's limitations period, include this defense. Citibank will have to prove the debt is still within the time limit, and many old debts aren't.

Step 3: File and Serve Your Answer

Once you've written your Answer, you must file it with the court and send a copy to Citibank's attorney. Filing means submitting it to the clerk's office, either in person or online if your court allows e-filing. There's usually a small filing fee, though you can request a fee waiver if you're low-income.

After filing, mail a copy of your Answer to the attorney listed on the Complaint. Use certified mail with return receipt requested. This proves you sent it. Keep the receipt and a copy of everything you file. Courts lose documents. Proof protects you.

Missing this step is fatal. If you write an Answer but don't file it, the court won't know you responded. Citibank will get their default judgment anyway.

What Happens After You File Your Answer

Once Citibank receives your Answer, the lawsuit enters the discovery phase. This is when both sides exchange evidence. Citibank must provide documents proving you owe the debt: the original credit agreement, account statements, payment history, and the chain of ownership if the debt was sold.

Request these documents through discovery. Send Citibank's attorney a Request for Production of Documents asking for:

• The original signed credit card agreement
• A complete payment history
• Documentation of how they calculated the amount owed
• Proof that Citibank owns the debt

Many lawsuits collapse at this stage. Citibank may not have the original agreement. Their payment records may be incomplete. If they can't produce solid evidence, they can't win at trial. At that point, they'll either drop the lawsuit or offer a settlement.

Settlement is where most cases end. Citibank would rather accept 40% to 60% of the debt than risk losing at trial. Once you've filed an Answer and requested discovery, you're in a position to negotiate. You're no longer a scared defendant. You're someone who might actually win.

When You Should Settle vs. Fight to Trial

Settling makes sense if you owe the debt and Citibank has solid proof. Trials take time and stress, and if you lose, you pay the full amount plus court costs. A settlement lets you close the case for less money and move on.

Fight to trial if:

• The debt is past your state's statute of limitations
• Citibank can't produce the required documents
• You genuinely don't owe the debt
• The amount Citibank claims is wildly inflated

If you go to trial, Citibank must prove their case by a preponderance of evidence. That means they need to show it's more likely than not that you owe the debt. If their evidence is weak or incomplete, you win.

Negotiating a Settlement With Citibank

Once you've filed your Answer, reach out to Citibank's attorney to discuss settlement. Start by offering 30% to 40% of the total debt as a lump sum payment. They'll counter higher. Settle somewhere between 40% and 60% if you can afford it.

Get the settlement in writing before you pay a dollar. The agreement should state:

• The exact amount you're paying
• That this payment settles the debt in full
• That Citibank will dismiss the lawsuit with prejudice (meaning they can't sue you again)
• That they'll report the debt as settled to credit bureaus

Never agree to a payment plan as part of a settlement unless the lawsuit is dismissed first. Some creditors will agree to drop the case only after you've finished paying, which leaves you exposed if you miss a payment.

If you're considering bankruptcy, settlement may not make sense. If you're drowning in multiple debts and can't afford a settlement, bankruptcy might eliminate the debt entirely. Talk to a bankruptcy attorney before settling if you owe more than $10,000 across multiple creditors.

How Bankruptcy Stops a Citibank Lawsuit

Filing bankruptcy triggers an automatic stay, which immediately stops all collection activity, including lawsuits. If Citibank has already sued you, the case freezes the moment you file. They can't garnish wages, freeze accounts, or proceed to judgment.

Chapter 7 bankruptcy wipes out most credit card debt, including Citibank balances. The entire process takes about four months. Chapter 13 bankruptcy reorganizes your debts into a payment plan, and whatever you don't pay over three to five years is discharged.

Bankruptcy isn't right for everyone, but if you're facing multiple lawsuits or debts you'll never realistically pay, it's often the fastest way out. Use our free bankruptcy screener to see if you qualify and what you'd lose in the process.

What If Citibank Already Has a Judgment Against You

If you missed the deadline to respond and Citibank has a default judgment, you have limited options. In some states, you can file a motion to vacate the judgment if you have a valid reason for missing the deadline: you were never properly served, you were hospitalized, or the court clerk made an error.

If the judgment stands, you can still negotiate. Citibank may accept a lump sum payment for less than the full judgment amount in exchange for releasing the judgment lien. Get this in writing and file a satisfaction of judgment with the court once you pay.

Bankruptcy also eliminates judgments. Once your bankruptcy is discharged, Citibank must release any liens or garnishments tied to the debt.

Citibank Contact Information

If you need to contact Citibank directly about your account or lawsuit, use these details:

• Phone: 1-800-950-5114 (general customer service)
• Address: Citibank, N.A., 701 East 60th Street North, Sioux Falls, SD 57104
• Legal department: Contact information is usually listed on the Complaint if they've sued you.

Don't ignore calls from Citibank before a lawsuit. If you can negotiate a payment plan or settlement before they sue, you avoid court entirely. Once they file, your leverage shrinks.

Bottom Line: Act Fast, File Your Answer, Force Them to Prove It

Citibank wins most lawsuits because people don't respond. You have a small window to change the outcome. File your Answer, deny their claims, assert your defenses, and demand proof. Even if you owe the debt, responding puts you in control of the settlement. If you don't owe it, responding is how you win.

If the debt is large, the case is complex, or you're unsure about defenses, consult a consumer attorney. Many offer free consultations. If bankruptcy is on the table, talk to a bankruptcy lawyer before settling. You might be able to eliminate the debt entirely.

One more thing: if multiple creditors are suing you, or if you're juggling lawsuits with other crushing debts, bankruptcy might be your cleanest exit. Don't let pride or fear keep you trapped. Explore your options, get advice, and act before Citibank gets that default judgment.