How to Defend in a Credit Card Lawsuit

If you default on a credit card, the credit card issuer or an outside debt collector can sue you for the amount due. State laws vary regarding the lawsuit process and your rights and responsibilities. Do not ignore a lawsuit and consult with a legal professional regarding state laws and your defense options. If you do not understand something on a summons or other court document, call the applicable court and ask for clarification.

Instructions

1

Answer the lawsuit. Reply to the suit within the time frame specified by the court. Dependent on state and county policies, you may be required to submit your initial reply by mail or appear in person. Additional instructions generally follow regarding court dates and your rights and responsibilities. Read both sides of each court notification carefully, and follow directions exactly. Failure to reply or appear may cause you to automatically lose the case.

2

Consult with a legal professional or the court regarding your rights and acceptable defense pleas. Common defense pleas include, but are not limited to, denying the accuracy of the claim or the amount owed, completely refuting liability, identity theft claims, unfair contract terms, or maintaining that you did not receive a copy of the summons, or it was served incorrectly. Additionally, if you serve in the military, you may qualify for a 90-day delay.

3

Check your state's statute of limitations. Each state provides varying statutes of limitations dependent on the type of debt. For credit card debt, the statute of limitations is generally from three to 10 years after the last action on the account. Last actions may include payments or charges. The statute of limitations prohibits debt collectors from suing you for delinquent credit card debt beyond the set time frame. Unfortunately, creditors may dispute the time frame or attempt to sue regardless. Offering proof that the statute of limitations has expired is a valid lawsuit defense.

4

Provide the court with proof of payments, negotiation attempts, your financial situation and the statute of limitations when applicable. If you need documents and the creditor will not supply them, contact the court and request information on acquiring a subpoena for account information applicable to your case. The credit card company is required to cooperate with a court-ordered subpoena.

5

Protect income exemptions from garnishment if the court finds you responsible for the debt. Federal law protects most types of government benefits such as Social Security, welfare, Veteran's and some disability payments from garnishment. Your state may provide additional protection for unemployment compensation, property or a percentage of your income. Contact the issuing court about garnishment, lien and levy protections, and request information about the process for claiming exemptions.