Rule 3.740 Collections Defense in California: What You Need to Know

Getting sued by a debt collector can feel overwhelming. You’re not alone in facing this challenge. According to Pew Charitable Trusts, debt collection lawsuits have risen sharply in recent years.

Rule 3.740 collections cases allow debt collectors to sue you for debts up to $25,000. Most cases involve credit card debt or unpaid purchases. The $25,000 limit doesn’t include interest or attorney fees.

Rule 3.740 cases do NOT include:

• Punitive damages
• Tort damages
• Actions to recover property
• Prejudgment writs of attachment

Ignoring the lawsuit won’t make it disappear. The plaintiff won’t forget about your debt. Taking action quickly protects your rights and financial future.

You Have 30 Days to Respond

California law gives you 30 days to respond in writing. The collection case letter will tell you where to send your response.

Failing to respond leads to serious consequences. The court may enter a default judgment against you. This makes your financial situation worse.

The 30-day deadline includes weekends and court holidays. If day 30 falls when the court is closed, you get until the next business day.

Our partner Solo helps you create a proper answer document in minutes. You can respond correctly and on time.

How to File Your Response

Follow the proper procedure when filing your answer. Some collection letters include a fill-in form. If not, you’ll need to complete the response form online.

You have two main options:

• Deny the claim completely
• Accept the claim but explain why you haven’t paid

Our partner Solo simplifies this process. The platform provides required forms, attorney review, and automatic filing with the court and plaintiff.

Option 1: Deny the Claim

You can file a general denial stating the plaintiff’s claims are false. Debt collectors make mistakes more often than you think. Use this to your advantage.

You might argue the debt amount is incorrect. Or you may claim you don’t owe the debt at all.

Include affirmative defenses in your answer. These strengthen your position in court.

Common Affirmative Defenses

Statute of Limitations. Debt collectors have a limited time to sue you. In California, the statute of limitations for written contracts is four years.

If the debt collector waited too long, request dismissal. The court must honor expired deadlines.

Failure to State a Cause of Action. Collection lawsuits must include specific elements:

• Evidence of a written or oral contract
• Proof the plaintiff fulfilled their obligations
• Evidence you breached the contract
• Damages the plaintiff suffered from your breach

Missing elements give you grounds for dismissal. Review the complaint carefully for these gaps.

After you deny the claim, the court sets a trial date. The case may be dismissed if the collector fails to prosecute.

Option 2: Accept But Explain

Admitting the debt doesn’t mean you lose automatically. You can explain why you haven’t paid yet.

File your answer with the court. Serve a copy to the plaintiff by mail or in person.

You must file proof of service afterward. This shows you responded on time and notified all parties.

Consider Bankruptcy as a Last Resort

Filing bankruptcy stops collection lawsuits immediately. An automatic stay halts all creditor actions against you.

Chapter 7 bankruptcy can eliminate eligible debts entirely. Chapter 13 creates a manageable payment plan.

Contact a bankruptcy attorney to discuss your options. Professional guidance helps you make the right choice.

Take Action Now

Responding quickly to a Rule 3.740 collection case protects your financial future. Don’t let the 30-day deadline pass.

You have strong defenses available. The statute of limitations may have expired. The collector may lack proper documentation. The debt amount might be wrong.

Getting help is easier than you think. Professional tools guide you through every step of responding.