what kind of lawyer to sue credit card company

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How to win a credit card lawsuit?

There are several reasons you could be in the right:

• The debt was paid — You have the receipt. ...
• The statute of limitations has run out — Every civil lawsuit must be filed within a certain time frame. ...
• Fair Debt Collection Practices Act (FDCPA) — It’s a federal law that requires debt collectors to provide information about your debt. ...

More items...

Can I pay my attorney with a credit card?

When you can’t avoid paying an attorney, you can at least earn substantial miles, points, or cash back by using one of the best credit cards to pay for legal services. There aren’t any cards that have law firms as a bonus category, but you can use a card that rewards you for everyday spending or use the big expense to unlock a huge welcome bonus.

What type of lawyer handles credit card debt cases?

When a creditor sues you to collect debt you haven’t paid, you have three choices to deal with the lawsuit:

• allow the creditor to obtain a judgment against you (called a "default judgment")
• defend the lawsuit yourself, or
• hire an attorney to represent you in the lawsuit.

Can a credit card collection lawsuit be settled before trial?

When you’ve been sued by a creditor to recover amounts due for your credit card debt, you probably have dozens of questions regarding your rights. You might have heard that these types of cases may be settled before trial, so some specifics on credit card debt settlement should be helpful in understanding the proceedings.

Can I sue the credit card company?

Federal law permits you to sue the credit card company if it does not follow the dispute procedures discussed above or takes some action forbidden by law (such as reporting a disputed amount as delinquent to a credit bureau). However, your right to sue may be limited by a mandatory arbitration provision.

How likely is a credit card company to sue?

Credit card companies sue for non-payment in about 15% of collection cases. Usually debt holders only have to worry about lawsuits if their accounts become 180-days past due and charge off, or default. That's when a credit card company writes off a debt, counting it as a loss for accounting purposes.

Can you settle credit card debt after a lawsuit?

You can resolve your debt after the suit is filed by sending a Debt Lawsuit Settlement Letter. After filing your Answer into the case, you should begin the process of negotiating a settlement. Most creditors/collectors want to reach a settlement, and they will often settle for less than the amount you actually owe.

What happens if you ignore credit card lawsuit?

If you ignore your summons, the court is likely to rule in the debt collector's favor and your wages could be garnished until you pay back the amount of money that the court rules you owe.

Can credit card companies take your house?

Fortunately, your home is safe from any creditors who do not have a mortgage or lien on it. Credit card companies and other unsecured loan holders can't come and simply take your property or home after missing a few payments. A creditor will first start making collection attempts by mail, phone calls or other methods.

Can you go to jail for credit card debt?

The short answer to this question is No. The Bill of Rights (Art. III, Sec. 20 ) of the 1987 Charter expressly states that "No person shall be imprisoned for debt..." This is true for credit card debts as well as other personal debts.

What percentage will credit card companies settle for?

Typically, a creditor will agree to accept 40% to 50% of the debt you owe, although it could be as much as 80%, depending on whether you're dealing with a debt collector or the original creditor. In either case, your first lump-sum offer should be well below the 40% to 50% range to provide some room for negotiation. 5.

Can you get a settlement figure on a credit card?

You can negotiate a settlement for credit card debt, but doing so could negatively impact your credit for 7 years. If your credit card debt has become unmanageable, you are wise to seek help and explore your options, such as requesting a lower interest rate.

What percentage should I offer to settle debt?

Offer a specific dollar amount that is roughly 30% of your outstanding account balance. The lender will probably counter with a higher percentage or dollar amount. If anything above 50% is suggested, consider trying to settle with a different creditor or simply put the money in savings to help pay future monthly bills.

What happens when a credit card company files a Judgement against you?

A judgment gives the creditor the right to use additional collection methods to collect the debt owed to them. For example, if the credit card company proves to the court that you owe $5,000, a court may enter a judgment saying that you owe $5,000 (plus costs and interest).

What happens if I don't pay my credit card for 5 years?

If you continue to not pay, your issuer may close your account, though you'll still be responsible for the bill. If you don't pay your credit card bill for a long enough time, your issuer could eventually sue you for repayment or sell your debt to a collections agency (which could then sue you).

What should you not say to debt collectors?

3 Things You Should NEVER Say To A Debt CollectorAdditional Phone Numbers (other than what they already have)Email Addresses.Mailing Address (unless you intend on coming to a payment agreement)Employer or Past Employers.Family Information (ex. ... Bank Account Information.Credit Card Number.Social Security Number.

What to do if you have been defrauded by a credit card company?

If you believe you’ve been defrauded or discriminated against by a credit card company, you can contact an experienced consumer protection attorney today to find out if your claim is serious enough to warrant the filling of a lawsuit.

Which credit card companies don't require arbitration?

Pick a card that doesn’t require arbitration. Chase, Bank of America, and Capital One were some of the major credit card companies that don’t require a mandatory arbitration clause be signed. Opt out of arbitration early in the contract.

How many credit card companies have arbitration clauses?

Creditcards.com studied 30 major credit card companies and discovered that only nine have those mandatory arbitration clauses in their contracts, and the other 21 have no mandatory arbitration clauses or provide consumers the chance to opt out within a set time frame.

What happens if you keep a balance on your credit card?

If you maintain a balance on your account, you may be paying an extremely high rate of interest. In addition to charging high interest rates, sometimes unexpectedly, some credit card companies implement other unfair consumer practices, which can leave consumers owing thousands of dollars that may take years, or even decades, to pay down.

Can an attorney evaluate a lawsuit?

However, if you strongly feel the injustice you suffered warrants a lawsuit, an attorney who handles these types of cases can evaluate the details of your claim and advise you of your chances of being successful with legal action.

Why are credit card companies not infallible?

The credit card companies did not become infallible because time has passed since those articles were published. Make sure the debt is yours, the identity is yours and the charges are yours.

What to do if a debt collector badgers you?

The consumer advocacy group ConsumerAction offers this strong advice: “Never repay a debt you don’t recognize until you ask the debt collector to verify it.” Collectors must stop contact until they send the proof of the debt. If the debt collector continues to badger without verification, there is a good chance it’s a scam.

What is the top debt collection problem?

In 2019, the top debt collection problem was being pursued for a debt an individual didn’t owe. People frequently learn of collection efforts only after they are denied a loan or don’t get a job because of an outstanding debt on their credit report. A couple facts are interesting to note.

How many calls can you get from a debt collector?

If you have five debts, that does mean you could get 35 calls – but you’d only have to have five conversations. The second part of the rule says that debt collectors are required to provide consumers a validation notice either immediately or within five days of contacting the person they believe owes the debt.

How long do you have to dispute a debt?

The notice has to include details about how much is owed, that the notice is from a debt collector, and the consumer’s right to dispute the debt within 30 days. Debt collectors then must wait 14 days before posting the debt on a credit report. A badgering phone call without the written notice should raise questions of fraud; make sure the call is legitimate before providing any information to anyone over the phone.

What happens if you default on credit card debt?

Debt has consequences, some of which will surprise the average American. For example, if you default on credit card debt the major consequence could be a lawsuit. Hold on.

Can you sell debt to a collection agency?

Avoiding phone calls will accelerate that process. Sometimes, if a lender decides that collection attempts aren’t financially worthwhile, the debt can be sold to a collection agency, which means a new set of collectors will go to work on you. Your debt could be sold again and again.

How to contact credit card issuer?

Call the credit card issuer at the number on the back of your card. Explain that you're in a difficult financial situation, and that you'd like to learn what type of payment assistance the card issuer can offer. Here are some common debt-relief options that may be available:

What happens if you are sued for unpaid debt?

If you're sued over unpaid debt, you're served with a complaint. You're required to respond to this complaint, unless you can come to a settlement agreement with the plaintiff first and they withdraw the debt-collection lawsuit.

How long does it take for a credit card to close?

90 days to 180 days: The card issuer typically charges off your account, meaning it closes your credit card. It either passes the debt to its own in-house debt collection service, or sells it to a third-party debt buyer. The issuer could sue you at this point, although it's unlikely for this to happen yet.

How long does it take for a credit card to charge late fees?

Up to 90 days: The card issuer notifies you and likely charges you a late fee for each monthly payment you miss. When your account is 60 days past due, the card issuer can start charging you a higher interest rate, known as a penalty APR. At this stage, your credit score may drop, but you can still get caught up on payments and keep your credit card account.

What to do if you can't afford your credit card?

Reducing your monthly payment amount. If your biggest issue is that you can't afford your monthly payments, you can ask the card issuer to let you pay less.

Can you go to jail for unpaid credit card debt?

No matter how bad the situation seems, try not to panic. You're not at risk of jail because of unpaid credit card debt. Most importantly, you have ways to fix the situation, whether it's settling, fighting the complaint in court, or filing bankruptcy.

Can a credit card company sue you for past due payments?

Having a past-due credit card could result in a lawsuit against you. However, this doesn't happen right away. The steps a credit card company takes depend on the amount of time since your last payment.

2 attorney answers

You may want to speak with a consumer attorney that handles debt collection harassment and identity theft matters. You may be able to find one on AVVO or you may want to search the Member Directory for the National Association of Consumer Advocates, which is organized geographically by state. See link below. More

Gordon R. Leech

A civil litigator. Depending on the amount you are out hiring a lawyer may not be cost effective.

Who is the plaintiff in a credit card lawsuit?

The suing party (plaintiff) should be the credit card company or place where you have a bank account (or a company that has purchased outstanding debt that originally belonged to one of these entities). The party being sued (defendant) should be you or a co-signer of the account. If you have no idea who the plaintiff is (unless the plaintiff is a debt buyer of your original debt, as explained above), the situation could be a case of:

What to do if you can't afford a lawyer?

If you can't afford a lawyer, you may be able to get free legal help from a local legal aid society , the American Bar Association ( ABA) or the National Association of Consumer Advocates ( NACA ). You’d only be responsible for minimal court costs like filing fees.

Do credit card companies have to prove you owe them money?

Even if you think that you legitimately owe the creditor money, you should still make credit card companies prove that you owe the exact dollar amount they’re claiming. This is called their “burden of proof” and it’s a tough requirement to meet. Most times, their claims are baseless or they’re unprepared to prove their court case.

Can you raise an FDCPA complaint?

If any of these have happened to you, you may have grounds to raise an FDCPA complaint that could result in you collecting enough or more than enough money from the debt collector to pay the debt. Learn more about how the FDCPA protects consumers and your rights against harassing debt collectors. You can also learn how to deal with debt collectors and get them to stop calling you.

Can credit card companies sue you?

The debt in question may not be yours. Credit card companies generally don’t want to take legal action unless you’ve made zero payments for about six months and ignored their calls. A lawsuit is a last resort. So long as you’ve been communicating with credit card companies and making monthly payments on time, even if it’s less money than what you owe, they’re less likely to sue. But that doesn’t mean they won’t. So if you’ve been sued, make sure that the creditor bringing the suit has targeted the right account holder. If you’ve been making good faith repayment efforts, the creditor filing suit may be going after the wrong person.

Can a credit card lawsuit be won by default?

Most credit card lawsuits are brought by debt-buyers who don't expect you to fight back. They win about 95% of cases by default. Because facing a no-show is easy, they come to court unprepared and without the documents needed to prove their case.This article provides information about where creditors can go wrong and discusses affirmative defenses that may help you beat a credit card lawsuit.

Do you have to file a pleading in court?

In a higher-level court, you may have to file a full legal pleading. A legal pleading is the defendant’s formal response to the plaintiff's complaint. You may need the help of a lawyer to do this. Many law firms offer free consultations, but you’ll have to pay for legal services like negotiating on your behalf with creditors, collection agencies, and the judge.