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What to do after a Credit Card Company has filed a lawsuit against you?

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What to do after a Credit Card Company has filed a lawsuit against you?

A collection agency for wells fargo card services has instituted an action in district court against me to recover just over $5,000.  A court date is set for the end of this week, and I am being told that we can settle the action for around $3,600.  If this is paid before this week's hearing, the case will be dismissed.  If I need additional time (30-90 days), they are telling me that judgment will be entered, but it will be marked satisfied.  What is the significance of this?  Should I scramble to make the payment before the hearing this week?  How do I get an agreement for the negative entry to be taken off my credit report?  All help greatly appreciated!!

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Super Contributor

Re: What to do after a Credit Card Company has filed a lawsuit against you?


@Betterintime wrote:

A collection agency for wells fargo card services has instituted an action in district court against me to recover just over $5,000.  A court date is set for the end of this week, and I am being told that we can settle the action for around $3,600.  If this is paid before this week's hearing, the case will be dismissed.  If I need additional time (30-90 days), they are telling me that judgment will be entered, but it will be marked satisfied.  What is the significance of this?  Should I scramble to make the payment before the hearing this week?  How do I get an agreement for the negative entry to be taken off my credit report?  All help greatly appreciated!!


That's what you need to do is tell them that you will pay the $3600 on agreement that they delete the collection from your credit report.

 

Know that if they do acquire a judgment, they can then proceed to post judgment proceedings to garnish your paycheck or take any non-exempt property, etc...

 

with that said have you filed a responsive pleading to their initial complaint? If so did you enter any affirmative defenses is this even your debt?

For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:

    




Updated Sept 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 2 of 11
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Super Contributor

Re: What to do after a Credit Card Company has filed a lawsuit against you?

I don’t know what jurisdiction you are in, but each jurisdiction has their own rules of court that will apply to how proceedings will be conducted and there are certain procedural steps that have to be taken for them to acquire a judgment and there’s certain steps that if you take can require them to present certain proof or overcome certain burdens; however you have to assert those.

Unfortunately this is not a legal forum and this is not legal advice, you would need to consult counsel that’s qualified in your jurisdiction. You can also consult your local rules of court and statutes.
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:

    




Updated Sept 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 3 of 11
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Super Contributor

Re: What to do after a Credit Card Company has filed a lawsuit against you?

@Betterintime by the way you should change the name of your title the credit card company is not suing you a collection agency is unless it's an in-house job?

For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:

    




Updated Sept 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 4 of 11
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Frequent Contributor

Re: What to do after a Credit Card Company has filed a lawsuit against you?


@Birdman7 wrote:

@Betterintime by the way you should change the name of your title the credit card company is not suing you a collection agency is unless it's an in-house job?


The OP should go by the name of the company named as "Plaintiff".  If the credit card company is named as the plaintiff, then that is the business that has filed suit.  

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Community Leader
Super Contributor

Re: What to do after a Credit Card Company has filed a lawsuit against you?

You can contact a consumer protection attorney who can halt the process for negotiation. 







Message 6 of 11
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Re: What to do after a Credit Card Company has filed a lawsuit against you?


@vntrsc wrote:

@Birdman7 wrote:

@Betterintime by the way you should change the name of your title the credit card company is not suing you a collection agency is unless it's an in-house job?


The OP should go by the name of the company named as "Plaintiff".  If the credit card company is named as the plaintiff, then that is the business that has filed suit.  


I would agree but the title says the credit card company is suing and the text of the thread says the collection agency is suing; they can't both be suing. Both can't own the debt.

For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:

    




Updated Sept 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 7 of 11
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Re: What to do after a Credit Card Company has filed a lawsuit against you?

Just to clarify.  Wells Fargo Card Services is the Plaintiff, being represented by a law firm that does collections.  I am a lawyer, but not this kind of lawyer, so I know just enough to be dangerous.   I did file an Answer to avoid a default judgment.  The hearing this week is an Arbitration hearing, which from my read of the law is non-binding, and one can request a trial de novo if not satisfied with the arbitrator's award.

 

Response from WF lawyer when asked for a pay for delete: "Wells Fargo will accurately report this to the credit bureaus, whether that means it gets removed or marked as paid in full is something my client will not guarantee."

 

How to proceed?

 

 

Message 8 of 11
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Super Contributor

Re: What to do after a Credit Card Company has filed a lawsuit against you?

@Betterintime Well knowing what you said now Wells Fargo is not known to delete. At least not that I’ve ever read of.

So it appears it is a charge off and it has not actually made it to an outside collector and therefore you don’t have a separate collection on your credit report yet do you? Instead they’re just using a law firm to sue you and collect.

Well here’s the deal, unless the chargeoffs paid, it’s going to hurt your score for a long time, and even if it is paid it’s going to hurt your score for a long time; however it’s better to pay it now and reduce the balance to zero now than later for scoring purposes.

I recommend you settle and if you can ask them to delete and try to make that a term that’s great, but I wouldn’t bank on it. If it’s your debt and you have no SOL, defense or other affirmative defense or any other way to beat it, then the best thing may be to settle it.

At least you’ve got an offer for less than the amount, you may want to go ahead and settle that if you have no way to avoid the judgment. I don’t have to explain the consequences of a judgment to you, you already know.

 

and by the way welcome to the forum might I suggest that you read the Scoring Primer linked at the top of my siggy?

For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:

    




Updated Sept 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 9 of 11
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Super Contributor

Re: What to do after a Credit Card Company has filed a lawsuit against you?

By the way are you within statue of limitations?
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.


RIP:

    




Updated Sept 2020, unless otherwise noted.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (Mature/young), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/mature/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record to start.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 10 of 11
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