Facing a lawsuit from a credit card company can be overwhelming, especially when you are already dealing with financial hardship. A credit card lawsuit can put your wages, bank accounts, property, and financial future at risk if it is not handled properly.
If you have been served with legal papers over an unpaid credit card balance, do not ignore them. The creditor may have a deadline for you to respond, and failing to respond could result in a default judgment against you.
An experienced attorney can review the lawsuit, examine the creditor’s claims, and determine whether there are defenses or other legal options available to you.
What Should You Do If a Credit Card Company Sues You?
The first step is to remain calm and carefully review the documents you received. A lawsuit is a serious matter, but being sued does not necessarily mean that the amount claimed by the credit card company is correct or that the creditor will automatically win.
Do Not Ignore the Lawsuit
Ignoring a credit card lawsuit can make an already difficult financial situation worse. If you fail to respond within the required period, the court may enter a default judgment against you.
A judgment can give a creditor additional collection options that may not have been available before the lawsuit. Depending on the circumstances, these may include efforts to garnish wages, levy certain bank accounts, or pursue other remedies permitted under Florida law.
Review the Creditor's Claim
A credit card company generally must establish the legal basis for its claim. An attorney can examine the complaint and supporting documents to determine whether the creditor has adequately established the debt and whether the amount being claimed is accurate.
Questions that may need to be examined include:
- Does the creditor have the legal right to collect the debt?
- Is the amount claimed accurate?
- Can the creditor establish the existence of the account and the underlying agreement?
- Are the records supporting the claim complete and reliable?
- Has the debt already been paid, settled, or otherwise resolved?
- Are there applicable legal defenses or procedural issues?
The answers will depend on the facts and documents in your particular case.
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You May Have Defenses to a Credit Card Lawsuit
Many consumers assume that if they owe money, there is nothing they can do when a credit card company files a lawsuit. That is not necessarily true.
An experienced civil trial attorney can investigate the creditor's allegations and determine whether legitimate defenses are available.
The Amount of the Debt May Be Disputed
The balance stated by a creditor is not automatically beyond question. An attorney can review account records and other evidence to determine whether the amount claimed is supported by the available documentation.
Interest, fees, payments, credits, and other account activity can all affect the balance being sought.
The Creditor May Need to Prove Its Case
A lawsuit requires more than simply telling the court that money is owed. The party bringing the lawsuit must meet the applicable legal requirements and present sufficient evidence to support its claim.
Depending on the circumstances, questions concerning account ownership, documentation, payment history, or other evidence may become important.
Procedural and Legal Issues May Matter
Credit card litigation can involve deadlines, documentation requirements, statutes of limitation, evidentiary issues, and other legal considerations.
These issues can be highly fact-specific. What may be a valid defense in one case may not apply to another, which is why having the case reviewed by an experienced attorney can be important.
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An Attorney May Be Able to Help You Negotiate
Defending a lawsuit does not necessarily mean that the case must proceed all the way through trial.
In some circumstances, examining the creditor's claim and asserting appropriate defenses may create an opportunity to negotiate a settlement or other resolution.
A lawyer can help evaluate your options and communicate with the creditor or its attorneys on your behalf.
What Happens If You Have Already Been Served?
If you have already received a summons and complaint, act promptly.
Keep all of the documents you received and make note of the date you were served. Do not assume that contacting the credit card company by telephone will substitute for formally responding to the lawsuit.
You should also gather relevant financial and account records, including:
- Credit card statements;
- Payment records;
- Settlement or payment agreements;
- Correspondence with the creditor or collection agency;
- Letters concerning the account; and
- Any court documents you have received.
These documents may help an attorney understand your situation and determine what options may be available.
Do Not Wait Until It Is Too Late
Financial hardship can happen to anyone. Losing a job, facing unexpected expenses, dealing with medical bills, or experiencing other financial difficulties can make it impossible to keep up with credit card payments.
But once a lawsuit has been filed, time becomes especially important.
If you are being sued by a credit card company in Florida, consider speaking with an experienced attorney as soon as possible. A lawyer can review your circumstances, explain the potential consequences, and help determine whether you have defenses or other legal options.
Contact the Smith Law Firm
If you are facing a credit card lawsuit in Cape Coral or elsewhere in Florida, contact the Smith Law Firm to discuss your situation.
Smith Law Firm
1425 Viscaya Parkway, #206
Cape Coral, FL 33990
Phone: 239-673-8991
The sooner you have your case reviewed, the sooner you can understand your options and decide how to respond.
Frequently Asked Questions
If you have been served with a summons and complaint, do not ignore it. Review the documents carefully, note the response deadline, and consider speaking with an experienced attorney as soon as possible. Failing to respond can result in a default judgment.
Yes. Depending on the circumstances, there may be legitimate defenses available. An attorney can examine whether the creditor can establish the debt, whether the amount claimed is accurate, whether the creditor has the legal right to collect, and whether procedural or other legal issues apply.
Generally, the party bringing a lawsuit must establish the legal basis for its claim and present sufficient evidence. Issues such as account ownership, account records, payment history, and the amount allegedly owed may become important in the case.
Yes. The balance claimed in a lawsuit is not necessarily beyond question. Payments, credits, interest, fees, and other account activity can affect the amount allegedly owed. An attorney can review the account records and supporting documentation.
Potentially. Defending a lawsuit does not necessarily mean the case must proceed to trial. Depending on the circumstances, reviewing the creditor's claims and raising appropriate defenses may create an opportunity to negotiate a settlement or another resolution.
