How to Fight Credit Card Lawsuits

Credit card companies often sue for collection after charging off a delinquent account. These companies usually only sue for accounts in excess of $5,000, but in many cases, will go after smaller debtors. Companies will usually only pursue legal action after many months of nonpayment and a refusal to maintain open lines of communication about the debt for months or years. Disputing a lawsuit for credit card debt involves maintaining a written record of all communications with the company, and will usually require a negotiated settlement.

Instructions

1

Review the Fair Debt Collection Practices Act from the Federal Trade Commission (FTC) before attending your court date. Maintain records of all communications and bills with your credit card company to strengthen your case. Avoid making any agreements with your credit card company or any collection agencies without keeping a written record.

2

Attend any court dates requested by the debt collector. If you fail to show up for a court date, the judge will hand down a default judgment against you, and the company may be able to garnishee your wages or seize funds from your bank account. If you attend the court date, the case may be thrown out, or you will get an opportunity to settle the debt. If you can prove that the collector violated the Fair Debt Collection Practices Act, you may be able to induce the judge to throw out the case.

3

Negotiate with the lawyer for the debt collector to come to some kind of settlement if the judge determines the debt to be lawful. In most cases, you will be able to get a reduction on the principal or interest payments in return for a settlement. Even if you come to an agreement with the lawyer in person, ensure that you create a written contract to back up the deal.

4

Uphold the terms of any settlement with the opposing lawyer. Verify that the collector upholds the other end of the agreement by checking your credit report.