Being Sued by a Credit Card Company

Being sued by a credit card company is an extremely stressful situation to be involved in. I know from personal experience. After going through the stress of multiple credit card lawsuits, I realized that the credit card companies have a free for all when it comes to suing consumers. The credit card companies would intimidate and prey on the consumer’s lack of knowledge when it came to credit card debt litigation.

From that point forward I decided that I was going to become an expert in the field of credit card debt litigation. I spent the next few years compiling information and observing thousands of credit card debt lawsuits. I realized that there are a few factors that often tip the scales when a credit is deciding whether or not to sue a consumer.

The first factor to take into account is that the creditor or bank is just trying to make money. For a bank or creditor to decide to sue a consumer, they need to feel that it is the most cost effective choice of action.

Some banks or creditors will automatically sue consumers when the consumer stops paying their credit card. The creditor most notorious for this is Citibank. Citibank has developed a cost effective way for them to sue consumers immediately when the consumer becomes unable to pay their credit card payments.

The rest of the creditors or banks will also sue if you send a cease and desist letter. This is always a mistake because if you go to court against a multinational bank or creditor, you will be stepping into a debate with their highly trained and experienced attorneys, oftentimes with little of no information of your own.

When the previously mentioned situation happens, which it often does, the consumer will lose the case 99% of the time. Due to this fact, my first piece of advice is to do everything in your power to avoid going to court.

Many consumers will end up in court even after doing everything that they can to prevent it. Going to court with your credit card company is not the end of the world. However, going to court without the proper knowledge and preparation will always lead to less desirable results.

In credit card debt litigation, there are a few stages that each consumer will go through. Almost all court cases will follow this order of events:

1.     Complaint

• States all rights to sue (causes of action) plus all facts & law that control the outcome if facts and law can be proved.

2.     Flurry of Motions

• Motion to dismiss
• Defendant’s motion for summary judgment
• Motion to strike
• Require a more definite statement of the complaint

3.     Answer

• Complaints are answered one allegation at a time, separately admitting or denying each allegation.

4.     Discovery

• Request for admission
• Requests for production
• Interrogatories
• Depositions
• Court orders

5.     Trial

• Formal presentation of facts and law for determination of winner pursuant to rules of evidence.

If you are reading this list and feeling like you are reading a foreign language, do not feel bad. This is how almost all consumers feel when first confronted with complex legal processes.

I have realized over my years of research that consumers need concise and powerful information at their fingertips before going through any of the steps in the legal process if they want to be successful.

To help consumers gain this knowledge, I have provided absolute need to know information in a 10 day mini course that can be started immediately from this website. For more detailed information I created the eBook How To Beat Collectors In Court. Both are great resources for any consumer who is being sued by a credit card company.