Sued By a Credit Card Company? Here’s What You Must Do

Getting sued by a credit card company feels overwhelming. You’re not alone, and you have options.

Credit card companies sue to collect unpaid debt. They usually try calling, emailing, and mailing you first. When those methods fail, they file a lawsuit.

You can fight back and protect yourself. Acting quickly gives you the best chance to settle or win.

What Happens When a Credit Card Company Sues You

A credit card lawsuit means the company wants a court to force you to pay. If they win, you’ll owe the full balance plus legal fees and collection costs.

Courts can also garnish your wages. Part of each paycheck goes directly to the credit card company until you’ve paid everything.

Wage garnishment continues until the debt is gone. That’s why responding fast matters so much.

You can avoid this outcome. Our partner Solo helps you respond properly and negotiate better terms.

Four Steps to Take When Sued by a Credit Card Company

Time is critical when you’re facing a lawsuit. Follow these four steps to protect yourself and reduce what you owe.

Step 1: File Your Legal Answer Immediately

You must file an Answer with the court. An Answer is your official response showing you’ll defend yourself.

You typically have just 14 to 30 days to respond. Miss this deadline and the court issues a default judgment. You automatically lose and owe everything plus fees.

Our partner Solo makes drafting your Answer simple. Answer basic questions online, then print your completed Answer. You can file it yourself or have Solo file it for you.

Solo also offers attorney review for extra protection. A lawyer checks your Answer before filing.

Example: Abby fell behind on her credit card payments and got sued. She used Solo to generate her Answer in minutes. She chose attorney review for peace of mind. Abby filed on time and avoided a default judgment.

Step 2: Verify the Debt Is Actually Yours

Never admit you owe money until the credit card company proves it. Some companies sue the wrong person or claim incorrect amounts.

Demand that the credit card company provide:

• The exact date you first incurred the debt
• Your complete payment history
• The current balance breakdown
• Principal versus interest amounts
• Direct proof connecting you to the debt

Don’t make any payments until you verify everything. If your card was stolen, the Fair Credit Billing Act limits your liability to $50.

Credit card companies must prove their case. Make them do it.

Step 3: Negotiate a Settlement for Less

Credit card companies don’t want long court battles. Neither do you.

You can often settle for less than you owe. Start by offering 60% of your original debt. The company may accept it or counter with a different amount.

Settlement negotiation saves you money and stress. You avoid court and close the debt for good.

Our partner Solo handles negotiations for you. You never have to speak directly with the credit card company. The platform makes offers and counteroffers until you reach an agreement.

Many debt collectors buy old debts for pennies on the dollar. They’re motivated to settle because any payment means profit.

Step 4: Defend Yourself in Court if Necessary

Court should be your last option. Fighting a lawsuit takes time, money, and legal help.

Most people settle before trial. But if settlement fails, you’ll need to prepare your defense. Consider hiring an attorney if your case goes to court.

Strong defenses include proving the debt isn’t yours, showing the statute of limitations expired, or demonstrating calculation errors.

How to Negotiate Your Credit Card Debt Settlement

Settlement is your best path to resolve debt quickly. Credit card companies prefer getting some money over spending years in court.

Follow this simple process:

1. Respond to the lawsuit by filing your Answer
2. Calculate how much you can afford to pay now
3. Send a lump sum settlement offer to the credit card company
4. Negotiate until you reach an agreement
5. Get the settlement terms in writing before paying

Never send money without a written agreement. The agreement should state the payment amount, the date, and that the payment settles the debt completely.

Written agreements protect you from future collection attempts. Keep copies of everything.

Start Your Response Today and Avoid Default

Credit card lawsuits have strict deadlines. Every day you wait reduces your options.

Responding quickly lets you negotiate better terms. You keep control of the situation instead of letting the court decide.

You can settle for less, avoid wage garnishment, and move forward. The right help makes all the difference.