How to Settle a Credit Card Lawsuit

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How to Settle a Credit Card Lawsuit
How to Settle a Credit Card Lawsuit (Image: anitapatterson)

Have you ever been sued by a credit card company and wondered how to settle a credit card lawsuit? Due to the current economic recession and loss of jobs, many consumers find themselves having to choose between buying groceries and paying credit card bills. As a result, individuals who once had perfect credit now find themselves with a growing pile of unpaid credit card debt. Finding yourself in such situation can be intimidating, overwhelming and stressful. However, you can settle a credit card lawsuit without going to court. Here's how.

Review the document and make sure you understand all the charges from the credit card company.

Take note of the unpaid balance. The balance stated in the lawsuit will generally be higher than the balance on your last credit card statement.

Contact the attorney, in person if possible. Let him know that you are aware that you have an unpaid credit card balance, but you disagree with the amount reflected in the lawsuit. Ask him to itemize all the charges and explain to you how he arrived at that particular amount.

Make an offer. Inform the attorney that you are willing to settle the credit card lawsuit, but you can not pay the full amount reflected in the lawsuit. For example, if the lawsuit is for $4,000, offer to pay $1,000.

Get everything in writing. The attorney must agree to accept the payment in full settlement. Ask that the credit card company report the debt as paid in full to the credit bureaus.

Tips & Warnings

  • Write the settlement check only after you have received a written agreement from the attorney showing that the credit card company will accept the settlement and report the unpaid balance as paid in full.
  • Do not ignore a credit card lawsuit. Read all documents immediately and thoroughly.

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