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Debt Lawsuit
Debt Lawsuit

What is a Credit Card Lawsuit?

Credit Cards can Sue You if You Default
It is so easy to get a credit card. Credit card companies practically throw them at you. They even send nice and friendly letters offering all sorts of incentives to use their credit card. They are just SO NICE! But what happens when you get in a situation where you cannot make a payment? Maybe a job loss or medical issue? You call the credit card company try to work it out. You soon learn that they will not work with you. They want their payments, and they turn DOWNRIGHT NASTY very quickly.

If you do not have money to pay them, then obviously you cannot pay them. They call and call but what can you do? Maybe you are hoping that they will "fall off your credit" eventually. As you may have learned, that is wishful thinking. The credit card companies have preserved their rights in the unfair, small-print, credit card agreement. One of those rights is to sue you in a court of law if you don't pay on time. When a credit card company sues you, it is called a "Credit Card Lawsuit." These have become quite common.

What is the Purpose of their Credit Card Lawsuit?
To get a judgment. If the credit card company can already ruin my credit, why are they suing me? The reason for the credit card lawsuit is that the credit card company is hoping to get a "Judgment" against you. A judgment is a powerful piece of paper they will receive from the court if they win the lawsuit against you. With this judgment, they now have much more power to go after you. Depending on your state, they can garnish your wages, bank accounts, vehicles, houses, land, etc. If you live in a state that protects wages, BEWARE: Once you deposit your "wages" in to a bank account, they become fair game for the judgment holder. Let's put it this way, you DO NOT want a credit card company to get this Judgment against you.

What is the Good News?
You could probably use some good news right now. Here it is. When compared to other kinds of lawsuits, you have a very good chance of beating a credit card lawsuit. Why? Your credit card probably sued a thousand people at the same time they sued you. They are hoping that most of the people ignore their credit card lawsuit, because the credit card company will win a judgment automatically against the people that ignore it (this is called a "Default Judgment"). If somebody smart like you hires an attorney to fight the lawsuit, the credit card company will now have to prove their allegations, follow all the rules, and do a lot of legal work. They hate that. They don't like to work. They want the easy win - the Default Judgments. Your lawyer is going to fight the credit card lawsuit by making them dig up old records, answer questions, accuse them of procedural defects, etc. Your chance of having the case dismissed (thrown out) goes way up, as well as the chance of an extremely favorable settlement.

Possible Outcomes of a Credit Card Lawsuit
If you ignore the credit card lawsuit, the most likely outcome is that the credit card company will get a Default Judgment against you. They will slap it on your credit, and then come after your assets (paycheck, bank accounts, etc.). If you hire a lawyer to fight it, the best case scenario is having the lawsuit thrown out and the debt cancelled. Another good scenario is counter-suing the credit card company for violating various laws while they were trying to collect from you (this could result in you winning money). Another credit card lawsuit outcome is a favorable settlement. You will have to agree to pay the credit card company a certain amount in exchange for dismissing the lawsuit. Most settlements result in you paying drastically less than the lawsuit amount, and may also allow you to pay the settlement over time. A very unlikely outcome is that your credit card lawsuit case goes all the way to trial. A trial is where a judge or jury would decide if you owe money and how much. Again, that situation is extremely rare.

I was Served a Credit Card Lawsuit. What Should I Do?
You should get some Free Advice from a lawyer. There is no sense in letting the credit card lawsuit stress you out. Professional attorneys exist to help people who are in your shoes. If you ignore the lawsuit or try to fight it on your own, you can get yourself in a lot of trouble. You have nothing to lose by getting a Free Consultation from a lawyer. The lawyer will give you free advice, and there is no obligation on your part. We recommend you fill out our Free Case Evaluation contact form, and let one of our qualified attorneys contact you.