Being sued by a credit card company can be one of the greatest hassles one can have to go through. Yet with the proliferation of credit cards, as well as the large number of businesses that sell on credit, thousands of Americans end up accumulating thousands of dollars in credit card debt— and that also includes accumulated interest. Many of these debtors find themselves in the midst of harrowing lawsuits, ignorant of how to deal with the problem. This article will tell you how to manage things should you find yourself sued by your credit card company.
As with anyone being sued, you must file an answer; otherwise, the court will automatically consider you to be at fault and you will be ordered to pay the company. Hire a good attorney, if possible, one who specializes in credit card suits.
There is also the option of filing a counter claim in response to being sued by a credit card company. In other words, you can make the claim that the company is making a fraudulent claim simply to collect money from you. According to the Fair Debt Collection Practices Act of 1978 requires proof of the existence of a debt before it can be collected, so submit a written request to the credit card company requiring that they do so. Also submit a cease and desist order telling them that you have been informed that you are in debt to them and that henceforth they may contact you only by phone. This way, if they ignore the order, you again have the option of suing them for harassment.
Prepare yourself thoroughly for the trial. Compile your own set of financial records, including detailed accounts of your revenue and expenses, and make sure that they are in order. You can use these to prove that you cannot pay your debt to the company at the present time.
You may not have to go to court at all. Even if you know that your balance is correct and that you do indeed owe the credit card company as much as they say you do, you may be able to negotiate a pay settlement out of court. The most tactful way to do this is to promise that if the company drops the lawsuit, you will make the payments. They will almost certainly be more than willing to take the deal, because lawsuits can take years to settle; so most parties use it as a last resort. It is also within your best interests to negotiate a settlement, since being found in debt by a court can be a black mark on your credit history, and your wages can be seized to satisfy the debt.
Other possible outcomes exist. The company may not be able to prove that you owe them anything at all; or they may themselvesbe discovered to have committed a violation of some sort. Either way, you get off scot free, so ask your attorney about these things.
Knowledge is your number one weapon when being sued by a credit card company. So to give yourself the best outcome possible, make sure you are armed with plenty of it.