Sued by Capital One? How to Crush Them In Court

Capital One is Suing Me: How to Negotiate & Pay As Little As Possible

First things first: do not ignore the lawsuit & prepare your answer or response as soon as possible. Make sure that your response is on time or else you risk automatically losing!

Here's what you'll need to do:

1. Find your original credit card agreement to see if arbitration (or threatening to arbitrate) is available to you
2. Draft your answer to the summons
3. File your answer with the Court and send it to the lawyer representing Capital One
4. Negotiate a favorable settlement!

We'll talk through the steps in-depth below. Remember, we made LawLaw to help make this process easier. Reach out if you want our help.

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Find Your Old Credit Card Agreement

Find the original agreement you signed when opening up your account. If you don't have these records on hand, you can usually find them by searching the Consumer Financial Protection Bureau's (CFPB) website.

If you entered into your agreement with Capital One before 2009, there may be an arbitration provision that you can point out to try and force the lawsuit out of court and into arbitration. Why would you want to do this? By finding this provision and arguing it's relevant in your case, you're showing several things: (1) you mean business and you've researched your unique legal situation well and (2) the fees involved in arbitration are often much more for the credit card companies than dealing with the issue in court! This can be a powerful motivation for them to settle with you.

Even if you don't have arbitration as a possible tool to use against the credit card company, you still need to file your response to the lawsuit. Keep reading for tips on doing that.

Drafting & Filing Your Answer

What is a "Response" or "Answer"? This is a legal document that outlines your defense to the claims made against you in the lawsuit. You must file this document with the civil court within a specific deadline, typically within 20 to 30 days of receiving the summons and complaint.

When drafting your Answer, it's important to include key information such as your name, address, and contact information, as well as identify the parties involved in the lawsuit. You should also include any affirmative defenses that you plan to use in your defense.

Key Affirmative Defenses

When drafting your Answer, it's important to include key affirmative defenses that can help you defend against the lawsuit. Some common affirmative defenses include:

• Statute of limitations: This defense argues that the creditor waited too long to file the lawsuit and that the statute of limitations has expired.
• Default: This defense argues that you were not properly served with the summons and complaint, or that you did not have sufficient time to respond to the lawsuit.
• Arbitration: Like we mentioned above, if Arbitration is available to you, you'll need to mention it sooner rather than later. Many courts will not let you arbitrate if you fail to bring it up early enough!

By including these affirmative defenses in your Answer, you can increase your chances of success in defending against the lawsuit.

In addition to drafting and filing an Answer, it's important to be aware of your rights under the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from engaging in certain debt collection practices. If you believe that Capital One or its debt collection agency has violated your rights under the FDCPA, you may be able to file a complaint with the Consumer Financial Protection Bureau (CFPB) and mention it in your response.

Overall, if you've been sued by Capital One, it's important to take the necessary steps to protect yourself and your rights. By drafting and filing an Answer, and including key affirmative defenses, you can increase your chances of success in defending against the lawsuit. Use LawLaw to create your Answer and use your Affirmative Defenses.

Risks of Ignoring a Lawsuit

Ignoring a lawsuit filed against you by Capital One could result in serious financial consequences. Here are some of the risks you could face if you choose to ignore the lawsuit:

Default Judgment

If you do not respond to a lawsuit filed against you by Capital One, the court may enter a default judgment against you. This means that Capital One wins the case by default, and you will be required to pay the full amount of the debt, plus any interest, fees, and court costs.

Credit Score

A default judgment can also negatively impact your credit score. Your credit report will show that you have a judgment against you, which can make it difficult to obtain credit in the future. This can also result in higher interest rates on loans and credit cards.

Wages

If Capital One obtains a judgment against you, they may be able to garnish your wages. This means that a portion of your paycheck will be withheld and sent directly to Capital One to pay off the debt. This can be especially problematic if you are already struggling to make ends meet.

A Potential Secret Weapon: Forcing Capital One to Arbitrate

We wanted to include a bit more information on arbitration. Arbitration is seen as an alternative method of resolving a dispute instead of going to court.

Arbitration is a process where an independent third party, called an arbitrator, hears the dispute and makes a decision. This process is often faster and less expensive than going to court.

To force Capital One to arbitrate, you'll need to look at your credit card agreement. Many credit card agreements have an arbitration clause that requires disputes to be resolved through arbitration rather than the court system. For Capital One, they removed this provision around 2009 and didn't bring it back.
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It's important to note that forcing Capital One to arbitrate may not always be the best option--it always depends on your specific situation. If they've offered you a great settlement option, you should weigh the pros and cons of taking versus continuing the battle in court or in arbitration.

Tips for Negotiating with Credit Card Companies

If you are facing a lawsuit from Capital One or any other credit card company, negotiating a settlement may be your best option. Here are some tips to help you negotiate with credit card companies:

How to Negotiate a Settlement
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Negotiating a settlement with a credit card company can be a daunting task, but it is possible. Here are some tips to help you negotiate a settlement:
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1. Know your limits: Before you start negotiating, determine the maximum amount you can afford to pay. This will help you negotiate a settlement that is realistic and within your budget.
2. Be persistent: Negotiating a settlement can take time, so be persistent and don't give up. Keep calling the credit card company until you reach a settlement that you are comfortable with.
3. Get everything in writing: Once you have negotiated a settlement, make sure you get everything in writing. This will help protect you in case the credit card company tries to change the terms of the settlement.

FDCPA and Validating Your Debt

Under the Fair Debt Collection Practices Act (FDCPA), you have the right to request validation of your debt from the credit card company or collection agency. Here's how to do it:

1. Send a written request: Send a written request to the credit card company or collection agency requesting validation of your debt. Make sure you send the request within 30 days of receiving the initial notice of the debt.
2. Wait for a response: The credit card company or collection agency must respond to your request within 30 days. If they do not respond, they cannot continue to collect the debt.
3. Review the validation: If the credit card company or collection agency responds with validation of your debt, review the validation carefully. Make sure the debt is accurate and that you actually owe the amount they are claiming.

By following these tips, you can negotiate a settlement with a credit card company and protect your rights under the FDCPA. Remember to always be persistent and get everything in writing. If you are struggling with debt, consider speaking with a credit counselor or financial services professional to help you navigate the process.

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