If you're served with a lawsuit from a credit card company or collection agency, you must act quickly or you may lose.The lawsuit won't go away if you ignore it.The company that sued you within 20 to 30 days after you were served with the complaint typically requires you to send an answer.The procedure for legally answering a credit card lawsuit is the same throughout the United States, although different states and courts may have specific rules that alter or complement the basic procedure.
Step 1: You can find out how long it will take to file your answer.
You only have 20 days to reply in most states.If you were served by mail, you may have more than 20 days.You need a summons or other document with the complaint to know how long you have to respond.If most of the defendants won't answer, debt collection law firms may file hundreds of lawsuits a day.You can force the debt collector to prove its case by responding to the complaint.
Step 2: Get information.
Before you start writing your answer, take some time to read over the complaint and review your own financial records to find any documentation you have about the debt.Review the terms of your credit card agreement to find out which state's law applies to it and what the agreement says about selling the debt to a collection agency.You can check your credit report to find out more about the debt, such as when it was sold off to a collection agency, your payment history, and the date of your last payment.If you recognize the debt and don't dispute it, you should evaluate your budget and finances to see if you can pay it off without going through a trial.Many states require credit card companies or collection agencies to attach documents to their complaint.You can state in your answer that the courts can grant relief if the documents were not attached.
Step 3: You should check the statute of limitations.
The courts cannot be used to collect money if the lawsuit was filed after the statute of limitations expired.Credit card debt typically has a statute of limitations of between three and six years.You can find out the statute of limitations in your state by using a map.The length of time is calculated from when the last payment was made.The size of the payment doesn't matter.If the statute of limitations is an issue in your case, don't contact anyone at the credit card company or collection agency that's holding the debt because you can restart it by talking to a customer service representative.There is a clause in some credit card agreements that says they are governed by the laws of a particular state.Nevada law has a six-year statute of limitations on American Express card agreements.
Step 4: Affirmative defenses could be researched.
Affirmative defenses are available to people who are sued by credit card companies.Affirmative defenses rely on facts.The burden of proof is on you as the party raises these issues.Lack of personal jurisdiction based on improper service is an affirmative defense.The correct way to deliver the complaint to you is what the court requires in order for you to have legal notice that you are being sued.You can claim this defense if the complaint was delivered in a different way.New York law states that the complaint should be sent to you personally.A copy of your complaint must be attached to your door or given to someone over the age of 18.If the complaint was given to your six-year-old son, you could assert a defense of lack of personal jurisdiction.If the person is a collection agency rather than the original credit card company, you can argue that they are not the correct person to file a lawsuit because you never entered into an agreement with them.If you challenge the collection agency's right to sue you, they must present evidence to the court, such as the valid written transfer of a signed credit agreement.There are many collection agencies that don't have this documentation.This can be raised as an affirmative defense if you were a victim of identity theft and never applied for a credit card.New York requires debt collection agencies to be licensed and registered in the state and include a license number in their complaint.If the information is missing, you may have an affirmative defense based on the failure to conform to the laws.
Step 5: Consider hiring an attorney.
An experienced attorney can help you answer the complaint and protect your interests if the debt is substantial.An attorney with experience in credit card lawsuits and consumer defense would know what means are available to you to dispute the debt, even if your state has additional defenses.An experienced consumer attorney knows the law and the court system and is familiar with the collection agencies and their tactics.If your only income is from Social Security or other public benefits, you may be considered judgment-proof by the court.Disability benefits can't be collected to satisfy a debt.An attorney can tell you if your income is exempt.If you receive public benefits, you may be able to get free or reduced-fee representation from your local legal aid clinic.You can get a free consultation from most consumer defense attorneys.If you're being sued for a credit card debt, the attorney understands that you don't have a lot of money to spend on a legal defense.
Step 6: Search for forms.
Depending on the state, forms and instructions can be found online, at the court clerk's office, or at legal aid clinics.You may have to go to the clerk's office in the court where the lawsuit was filed if you received an answer form with your summons and complaint.
Step 7: Your caption should be created.
The first page of the complaint has the caption at the top of it.The caption on the complaint should be copied if you don't have an answer form.The summons and complaint should have the same heading.The name of the company or collection agency that filed the lawsuit is listed.The number is included in the caption.If your caption doesn't include a number, it means the complaint was delivered to you before the lawsuit was filed.
Step 8: Your introduction should be written.
If you don't have a prepared form, start your answer by stating who you are and the purpose of the document you're filing with the court.This doesn't need to be more than a sentence or two, and you can generally copy the language in the introduction to the complaint, changing words where necessary to suit your position.If the complaint begins with "Come now the Plaintiff, XYZ Debt Collection, and submits this Complaint", you could write something similar.
Step 9: If there are allegations in the complaint, respond to them.
If you don't directly respond to the allegation, it will be treated as if you agreed to it.You can either admit it, deny it or say you don't know about it.The credit card company has to prove the information if you deny.If you want to deny all the allegations in the complaint, you can check the box on the answer form.The company has the burden of proof in its complaint, so keep that in mind.They don't have to prove an allegation if you admit it.Make them prove their case, because they're the ones taking you to court.Denying an allegation doesn't mean you are saying it's false or that you're trying to avoid your debts, it means you have to prove it.If the complaint states that you entered into a credit card agreement with the other party, but they bought your debt from the original company, you should deny that allegation.You did not enter into an agreement with the collection agency.If you don't make a certain number of payments on time, your credit card company may be able to sell the debt to a collection agency.Make them prove the amount you owe.Your debt may have changed hands multiple times before it was taken over by the collection agency that sued you, and somewhere along the line there may be an error in calculation.
Step 10: There are affirmative defenses or counterclaims.
Affirmative defenses that apply to your case, including the passage of the statute of limitations, must be listed separately after you respond to the allegations.If you can't bring up the affirmative defense in the future, you must raise it in your answer.If affirmative defenses are not raised in your answer, you should include a defense even if you don't know if it applies to your situation.An affirmative defense you didn't raise would have won the case if you had included it.For information purposes, you can include this at the end of your answer if your only income is from Social Security or disability benefits.The cost of the lawsuit may be reconsidered if it's realized it can't collect.If the debt collector has violated the Fair Debt Collections Practices Act, you may have a counterclaim.If you've been receiving phone calls from the collection agency late at night or at your workplace, you should review the federal law or speak with an attorney.If you win the case, you could be awarded attorney's fees and costs along with statutory damages of $1,000.
Step 11: Your signature block can be created.
Leave a blank line and some space for your signature after you've finished your complaint.Below your signature, print or type your full legal name, as well as contact information, including your address, phone number, and email address.
Step 12: You must complete any additional forms.
If the court requires more information, it will be included with your answer form or on your summons.Washington requires you to fill out a Declaration of Exempt Income and Assets in addition to your answer.Income and assets that are exempt from collection by state law are listed in this form.
Step 13: If you have an answer, sign it.
Signing your signature in front of the clerk or in the presence of a notarial public is required in some places.Affirmative defenses that relate directly to the merits of the case must be included in answers.The court will keep your originals, so make at least one copy of your answer for your records.Don't send the originals of the case to the attorney.
Step 14: The certificate of service needs to be filled out.
According to the certificate of service, you have been served with a copy of your answer.If you want to provide service, check the box and write out how you intend to do it.You can either have your answer hand-delivered by a sheriff's deputy, a private process serving company, or anyone over the age of 18; or you can mail the answer using certified mail.
Step 15: You should serve your answer to the person who brought the case.
On the same day you fill out the certificate of service, you must serve the lawsuit.You can serve the answer using certified mail.There is an address under the attorney's signature.Keep your certified mail receipt as proof of service once you mail your answer.If the complaint you received did not have a file number, you do not need to file an answer with the clerk since the lawsuit has not yet been filed.
Step 16: The clerk of court will accept your answer.
You can either mail it or deliver it to the clerk's office.The clerk will usually give you a court date for the trial when you file your answer.If you can't settle the case before the court date, be sure to show up.Massachusetts requires you to file your answer with the clerk within five days of serving the lawsuit.The deadline will be listed on your summons.
Step 17: The case needs to be settled.
You might consider contacting the company that sued you if you have the ability to do so.After you've filed an answer to the complaint, the company may be willing to settle for a lower amount.If you've hired an attorney, collection agencies are more willing to settle.