Being sued by a credit card company can be overwhelming. Receiving a Summons and Complaint may leave you wondering whether you actually owe the debt, whether the amount is correct, and what will happen if you cannot afford to pay.

A credit card lawsuit is a serious matter, but being sued does not necessarily mean the credit card company will automatically win. A Wisconsin consumer protection attorney can review the lawsuit, investigate the underlying debt, identify potential defenses, and help determine the best way to resolve the case.

This article is for informational purposes only and does not constitute legal advice. Reading it does not create an attorney-client relationship. For guidance specific to your situation, consult a licensed Wisconsin attorney.

What Is a Credit Card Debt Lawsuit?

A credit card debt lawsuit occurs when a creditor or another company claiming the right to collect the account files a lawsuit seeking a judgment against you.

The lawsuit may allege that:

• You opened a credit card account.
• You agreed to the credit card company's terms.
• You failed to make required payments.
• A balance remains unpaid.
• The plaintiff is entitled to a judgment for the amount allegedly owed.

Credit card debt lawsuits can be filed by the original credit card company or, in some cases, by a debt buyer that claims it purchased the account.

Receiving a Summons and Complaint

The first step in a lawsuit is generally receiving legal documents notifying you that a case has been filed.

A Summons provides information about the lawsuit and explains how you must respond. The Complaint contains the allegations being made against you.

These documents should not be ignored.

Failing to respond or appear when required can result in a default judgment. Once a creditor obtains a judgment, it may have additional collection remedies available under Wisconsin law.

What Can an Attorney Do for You?

An attorney can provide valuable assistance throughout the lawsuit.

The first step is generally reviewing the court documents and understanding exactly what the credit card company is claiming.

An attorney can then investigate whether the plaintiff has sufficient evidence to establish its claim.

Reviewing Whether You Actually Owe the Debt

One of the first questions an attorney can examine is whether the debt actually belongs to you.

Mistakes can happen. A lawsuit could involve:

• An account belonging to someone else.
• Identity theft.
• An account that was previously paid.
• A debt that was previously settled.
• Incorrect account information.

If you do not recognize the account, tell your attorney. The circumstances surrounding the account may provide an important defense.

Examining the Amount of the Debt

An attorney can also review whether the amount being claimed is accurate.

The lawsuit may include a balance that consists of principal, interest, fees, and other charges.

An attorney can compare the amount claimed with available account statements and payment records.

Potential issues can include:

• Payments that were not credited.
• Incorrect interest calculations.
• Unauthorized fees.
• Duplicate charges.
• Incorrect account balances.

Even when some debt is legitimately owed, the amount demanded in the lawsuit may not necessarily be correct.

Determining Who Owns the Debt

Sometimes the company suing a consumer is not the original credit card company.

Credit card accounts can be sold or transferred to debt buyers. When that happens, the plaintiff may need to establish that it has the legal right to collect the debt.

An attorney can examine documentation concerning the ownership and transfer of the account.

This can be particularly important when a lawsuit is filed by a company that the consumer has never previously dealt with.

Examining the Age of the Debt

The age of a debt can also matter.

Wisconsin has statutes of limitations governing various types of legal claims. Depending on the nature of the claim and applicable law, a creditor may have only a limited amount of time to bring a lawsuit.

An attorney can review:

• When the account went into default.
• The account's payment history.
• When the creditor claims the debt became due.
• The date the lawsuit was filed.
• Whether an applicable statute of limitations defense exists.

The age of a debt does not automatically mean that a lawsuit is invalid, so the specific facts need to be evaluated.

Identifying Defenses to the Lawsuit

A consumer may have several potential defenses depending on the circumstances.

An attorney can investigate whether:

• The debt does not belong to you.
• The amount claimed is incorrect.
• The plaintiff cannot establish ownership of the account.
• The plaintiff lacks sufficient documentation.
• The debt has already been paid or settled.
• The lawsuit was filed too late.
• Applicable consumer protection laws were violated.

Not every defense will apply to every case. The purpose of an attorney's review is to determine which arguments may have merit based on the evidence.

Filing an Answer

If you have been served with a lawsuit, you generally need to respond according to the applicable court rules and deadlines.

An attorney can prepare and file an Answer on your behalf.

An Answer allows you to respond to the allegations contained in the Complaint and assert appropriate defenses.

Failing to respond can put you at a significant disadvantage and may result in a default judgment.

Negotiating a Settlement

Not every credit card lawsuit needs to go all the way to trial.

An attorney can communicate with the credit card company or its attorney to determine whether the case can be resolved through settlement.

Depending on the circumstances, negotiations may involve:

• A reduced lump-sum payment.
• Monthly payments.
• A negotiated settlement amount.
• Resolution of disputed charges.
• Other terms designed to resolve the lawsuit.

Any settlement should be carefully reviewed and documented before you make payments.

Defending You in Court

If the case cannot be resolved through negotiation, an attorney can represent you in court.

Depending on the circumstances, this may involve:

• Attending hearings.
• Presenting evidence.
• Questioning witnesses.
• Challenging the plaintiff's evidence.
• Making legal arguments.
• Defending against the creditor's claims.

Having an attorney can be particularly valuable when the plaintiff has substantial legal representation or the case involves complicated factual or legal issues.

Investigating Potential Consumer Protection Violations

A credit card lawsuit may also involve potential consumer protection issues.

An attorney can examine the creditor's or debt collector's conduct to determine whether applicable Wisconsin or federal laws may have been violated.

Potential issues can include improper collection practices, misleading statements, inaccurate information, or attempts to collect amounts that are not legally owed.

If violations occurred, you may have claims or defenses in addition to simply disputing the underlying debt.

What Happens If You Lose the Lawsuit?

If the credit card company obtains a judgment, the creditor may have additional legal remedies for collecting the judgment.

Depending on the circumstances, these remedies can include wage garnishment and other judgment-collection procedures.

A judgment can therefore have consequences beyond the original lawsuit.

This is one reason it is important to address a credit card lawsuit before a judgment is entered whenever possible.

What Should You Bring to an Attorney?

If you have been sued by a credit card company, gather all documents relating to the account.

Useful documents may include:

• The Summons and Complaint.
• Credit card statements.
• Payment records.
• Collection letters.
• Settlement offers.
• Emails and text messages.
• Credit reports.
• Contracts or account agreements.
• Records concerning identity theft or fraud.

Providing your attorney with as much information as possible can make it easier to evaluate your case.

Do You Need a Lawyer for a Credit Card Lawsuit?

You are generally not required to hire an attorney simply because a credit card company sued you. However, legal representation can be valuable when you do not understand the allegations, believe the debt is inaccurate, or want someone to evaluate potential defenses.

A consumer protection attorney can help you understand what the lawsuit means and what options may be available.

Conclusion

Being sued by a credit card company in Wisconsin does not mean that you should simply assume the amount claimed is correct or immediately agree to pay.

An attorney can review the lawsuit, investigate the debt, examine the plaintiff's evidence, identify potential defenses, negotiate a settlement, and represent you in court when necessary.

If you have received a Summons and Complaint concerning credit card debt, taking action promptly can help protect your rights and ensure that you understand your options before a judgment is entered.

Attorney Nathan DeLadurantey offers free consultations to explain your legal rights in Wisconsin. Free consultations can be scheduled online.