How To Beat a Credit Card Lawsuit in Court (2024 Guide)

Getting sued by a credit card company can feel overwhelming. You might be tempted to ignore the lawsuit papers. Don’t make that mistake. You have legal rights and solid defenses available. If you fight back in court, your chances of winning are better than you think.

How To Win a Credit Card Lawsuit

Many credit card lawsuits are filed by debt buyers. These companies don’t expect you to respond. When you show up and challenge their case, they often lack proper evidence. They can’t prove the debt is yours or that they can legally collect it.

Take these steps to improve your odds:

• Respond to the lawsuit immediately. Ignoring it gives the court permission to rule against you automatically.
• Force the creditor to prove their case. Debt buyers often lack documentation. Missing paperwork works in your favor.
• Look for errors or violations. Debt collection laws protect you from harassment and unfair practices. Rule violations give you strong defenses.
• Check if the debt is still collectible. Every state limits how long creditors can sue. Expired deadlines mean dismissal.
• Explore all resolution options. You can negotiate a settlement, challenge the lawsuit, or use bankruptcy protections.

Even if you owe the money, the creditor must still prove their claim. The key is responding, showing up, and exploring every possible defense.

If you’re ready to respond, our partner Solo can help you draft your legal answer. The platform walks you through every step without needing a lawyer.

Keep reading to learn how to answer the complaint and what defenses might apply.

What Are Your Chances of Winning?

Better than you think! But you must fight back.

Most credit card lawsuits come from debt buyers who expect no-shows. When you don’t appear, they win by default. A Pew Charitable Trust report found this happens in over 70% of cases. Because facing empty courtrooms is easy, creditors arrive unprepared. They lack the documents needed to prove their case. You have a real chance of beating the lawsuit.

What To Do When Sued by a Credit Card Company

Start by asking yourself these questions:

• Is the debt actually yours? Verify it carefully.
• Is the debt old? Check your state’s statute of limitations.
• Did the collector break laws while pursuing you? Know your rights.
• If you filed bankruptcy, was this debt included?

Even if you legitimately owe money, make creditors meet their burden of proof. They must prove to the judge you owe the exact amount claimed. Creditors often struggle with this requirement. Third-party debt collectors especially lack proper documentation.

Verify That the Debt Is Yours

Your first question should be: Is this debt actually mine? Sometimes creditors target the wrong account holder. If you’ve been making good faith payments, they may be suing the wrong person.

When sued, you’ll receive two legal documents:

• A court summons ordering you to appear with time, date, and location
• A legal complaint describing the claim and stating how much you owe

The amount should be recognizable, even with interest and penalties. The plaintiff should be the credit card company, financial institution, or debt buyer. The defendant should be you or a co-signer.

What If You Don’t Recognize the Debt?

Nearly all debt collectors attempt contact before filing lawsuits. The Fair Debt Collection Practices Act requires them to send you a validation notice. You receive this either before first contact or within five days after.

If you don’t recognize the debt, request the original creditor’s name. Send a debt verification letter. If you’re served with a summons but don’t know the plaintiff, consider:

• Identity theft or fraud: You didn’t make or consent to the purchases.
• Mistaken identity: Someone else opened the account in your name.
• Clerical error: The credit card company made recordkeeping mistakes.

None of these mistakes are your fault. Get a free credit report to verify any claimed debt. Make sure the debt hasn’t been reported twice. Debt buyers and credit card companies make naming errors regularly.

If the credit card company sold your account to an agency, the debt buyer may lack legal standing to sue you. You may have already settled the debt. Purchase procedure errors are solid legal defenses.

Check the Statute of Limitations

Your next question is whether the debt is too old. If the debt is “time-barred,” it’s too late to sue you.

State laws limit how long creditors can bring civil court cases. These statutes of limitations generally range between 2-6 years. They vary by state law and debt type. Check your state’s laws to see what applies.

Courts won’t automatically dismiss cases when statutes expire. You must respond to the lawsuit and tell the court the debt is time-barred. The judge will typically dismiss the case when you raise this defense.

Make Sure the Collector Hasn’t Broken the Law

Ask yourself if the debt collector harassed you while collecting. If the original credit card company charged off your debt and sold it, third-party collectors must follow strict rules.

The Fair Debt Collection Practices Act forbids third-party collectors from fraudulent and deceptive behavior. They can’t harass you by:

• Making early-morning or late-night calls
• Telling family, friends, or others about your debt
• Phoning after you’ve told them not to call at work
• Trying to contact you once you’ve hired an attorney
• Contacting you after you’ve sent a cease communication letter

If any of these happened, you may have grounds for an FDCPA complaint. You could be awarded up to $1,000 against the collector.

Use Bankruptcy Protections To Stop the Lawsuit

Filing for Chapter 7 bankruptcy can stop the lawsuit immediately. The automatic stay is a legal protection that halts all collection actions. Lawsuits, wage garnishments, and collector calls stop as soon as you file.

If you already filed bankruptcy and included this debt, it’s illegal for collectors to pursue it after discharge. You can use this as a defense and ask for dismissal. You may even have a claim against the company for violating the automatic stay or discharge injunction.

How To Fight and Win a Credit Card Lawsuit

After considering the facts, find out what response is required. Your summons should include information about how to respond. If you’re unsure, contact the court clerk. Clerks can’t give legal advice but can provide correct forms and information.

In some states, checking a box admitting or denying claims works. Or showing up to court on the listed date may be enough.

In other courts, you need to file a written response. You may handle this yourself or seek legal help. Many law firms offer free consultations. You’ll pay for services like negotiating with creditors or appearing in court.

Legal advice and someone to handle harassing calls may be worth your peace of mind. Plus, if you have a good defense, the plaintiff may pay your attorney fees. We’ll cover possible defenses below.

If you can’t afford a lawyer, get free legal help from local legal aid organizations, the American Bar Association, or the National Association of Consumer Advocates.

How To Answer the Complaint

Your summons and complaint should include instructions about what to do next. You’ll usually have 20-30 days to submit an answer. On your answer sheet or written pleading, you’ll want to:

• Admit or deny each claim
• Raise any defenses
• Counter with your own claims against the company, if any

Sign the page and keep a copy for your records. If your answer includes a counterclaim for FDCPA violations, you’ll likely need to pay a filing fee. If you can’t afford the fee, you may qualify for a waiver.

Answer the complaint within the time allowed or face a default judgment. A default judgment in the creditor’s favor allows them to take aggressive steps like:

• Wage garnishment — taking money from your paycheck
• Levying bank accounts — direct access to withdraw funds

These are harsh punishments for debt you may not even owe. A money judgment also lowers your credit score. Don’t join the 95% of people who don’t contest complaints. Surprise the creditor by showing up and making them prove their case. Come prepared by knowing what to say in court.

What’s the Best Defense Against a Credit Card Lawsuit?

You have several possible defenses when a creditor sues you. Do your research or get legal help to see which defenses work best. Defenses could involve:

• Fraud or identity theft
• Bankruptcy discharge
• Previous debt settlement
• Expired statute of limitations
• Error by debt purchaser
• Credit card company’s mistake

Keep in mind you’ll need to prove your defense. You can do this with receipts, court documents, correspondence, or affidavits.

Remind the suing parties of their burden of proof. If you have nothing else, answer that you may owe something but not the amount they claim. With this answer, you force plaintiffs to prove you owe the debt and the exact amount.

If they can’t or aren’t prepared, any of the following may happen:

• The judge could dismiss your case.
• The creditor may drop the lawsuit and offer a settlement.
• You may buy more time to work on an acceptable settlement.

Your Next Steps

A credit card lawsuit can be scary, but don’t panic. Credit card companies and debt collectors make mistakes. Often, they’re wrong in one way or another. They’re counting on you not showing up so they win by default. Don’t lose like this.

Answer the complaint. Show up to court. Fight back. Your chances of winning or reducing the debt are far better than you think.