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How to Settle a Credit Card Debt Lawsuit

It is not uncommon for consumers to get sued for failing to pay up their debts in collections.
According to the Consumer Financial Protection Bureau (CFPB), an estimated 28% of Americans
battle with credit card debts in collections.

You may be tempted to ignore the various calls, letters and other attempts of your collection
agency or credit card company, but this move can potentially end at you being served with a
summons which if also ignored, can have severe consequences. One of the biggest mistakes you
can make is to ignore your summons, rather than this, try your best to respond. If unsure about
how to go about it, check this article we provided on how to answer a credit card lawsuit

Failing to respond to the summons within the time frame given will result to you losing the case
by default. The plaintiff will be entitled to all damages– even the inaccurate ones –listed in the

This article provides a step by step guide on what to do when you end up getting sued by your
collection agency/credit card company. We at have also
provided an e-book called the “Defendant Package ” dedicated to help you win your lawsuits easily
if properly utilized and maximized.

Steps To Settle A Credit Card Lawsuit

Try negotiating a settlement: Contact the creditor and try to negotiate a settlement. You may be
able to negotiate a lower settlement amount, or you may be able to set up a payment plan.

If you’re trying to settle a credit card lawsuit with a creditor, the best way to contact them is
through their legal department or the attorney handling the case. You can do this by calling the
creditor’s customer service number and asking to be transferred to the legal department or
attorney. Alternatively, you can look up the attorney’s contact information online and reach out to
them directly.

When you contact the creditor or their attorney, be prepared to provide your name, account
number, and the details of the lawsuit. You should also be ready to discuss a possible settlement
offer and negotiate payment terms.

It’s important to be polite and professional during these conversations, as you’re trying to reach a
mutually beneficial agreement. Make sure to document any agreements or promises made
during the negotiation process, and follow up with the creditor or their attorney as necessary to
ensure that the settlement is finalized.

Answer the Summons and Complaint: After considering the option above and the creditor still
do not wish to negotiate, answering the summons/complaint is the next step to take.

To answer the complaint, you must file an answer with the court and notify the creditor. Carefully
follow the guide below to file an answer:

  1. Review the complaint: Carefully read through the complaint to understand the claims and allegations being made against you. Look for any factual errors or inconsistencies that you can use in your defense.
  2. Seek legal advice: Consider hiring an attorney to help you respond to the complaint and negotiate a settlement. An experienced attorney can help you understand your legal options and develop a strategy for responding to the lawsuit.

Alternatively, you can also immerse yourself in gaining the required Knowledge to win the lawsuit
from our e-book on how to win your credit card lawsuit without an attorney.

  1. Respond to every paragraphs on the complaint: On the complaint, you’d find written paragraphs detailing all they have levied against you. You’re to respond to each paragraph in one of these three ways;
    • Admit what has been written in that paragraph against you
    • Deny what they have levied, and expect them to prove what they wrote as true
    • Defendant denies the allegation for lack of knowledge sufficient to know the truth or falsity thereof. This just simply legally means “I don’t know”.
  1. Assert affirmative defenses: In your answer, you can also assert affirmative defenses, which are legal arguments that can help you defend against the claims being made against you. Common affirmative defenses in credit card lawsuits include lack of standing, statute of limitations, and improper service of process.

• Prepare for Court: If you do not settle the debt, you will need to prepare for court. You should;

Gather all the relevant information by Collecting all the information related to the lawsuit,
including the original credit agreement, statements, and any communication between you and the
creditor. This information will help you understand the details of the case and prepare your

Also, Review your credit report by checking your credit report for any errors or discrepancies.
Correcting these errors can help you strengthen your case and possibly improve your credit
score. Lastly, Familiarize yourself with the legal process and the relevant laws that apply to your
case. If necessary, seek the help of a legal professional to guide you through the process.

• File a Motion to Dismiss: If you believe the creditor does not have a valid case against you, you
can file a motion to dismiss the case. You can achieve this by;

  • Reviewing the rules: Check the rules of the court where the case is being heard. The rules will provide information on how to file a motion to dismiss and the deadlines for doing so.
  • Determine the basis for dismissal: Identify the legal basis for dismissing the case. Common grounds for dismissal in a credit card lawsuit include lack of standing, improper service, or lack of evidence.
  • Draft the motion: Draft a written motion to dismiss that clearly states the basis for dismissal and provides legal arguments to support your position. The motion should be concise, clear, and to the point.
  • File the motion: File the motion to dismiss with the court clerk within the deadline set by the court. Include a certificate of service, which confirms that a copy of the motion has been provided to the opposing party.
  • Attend the hearing: Attend the hearing on the motion to dismiss if one is scheduled. Present your case and respond to any arguments made by the opposing party.

If you have any questions, check out our credit card lawsuit FAQs