Being Sued by Credit Card Company

**frfpatty** · 11-28-2008, 10:42 PM

Hi, I live in NJ. Received summons 11/28. Being sued by credit card company for $ 1000 app. including lawyer fees. I need to know what is the right thing to do because I don't want a judgment against me. Should I contact the lawyer suing me and offer a settlement of 30% of the original amount? or any other percentage that sounds decent and fair.
Should I go to court and see what the judge determines?
If the lawyer agrees to settle before court date, how do I go about it, what kind of letter should I use and what kind of language the letter should include.
Can I dispute the amount stating that I do not owe that much. The line of credit was for 500 and with the late fees and over the limit fees got to a 1000.
How do I answer the summons I received? What kind of language should I use in my answer to the court.
The debt is 18 months old.

**Betty3** · 11-29-2008, 04:43 PM

You need to answer the summons in the time limit allowed or they will get a default judgment against you. There should have been instructions with the summons as how to answer. If you have a defense, be sure to include that in your answer. The court clerk will normally help you with how to answer a summons (give you general instructions) but they cannot tell you what to include in it or give you any legal advice.

You can call the lawyer for the collection agency & see if they will settle prior to going to court but they don't have to. They might settle for a lessor amount and/or set up a monthly payment plan. If they are willing to settle or set up a payment plan, be sure to get any agreement in writing.

**frfpatty** · 11-29-2008, 08:30 PM

Hi, thanks for your quick response, but I have a few more questions. I will answer the summons but what do you think is wise to say. Can you claim that the amount of the debt is overlly inflated due to excessive charges by the credit card company. By the way, I defaulted because I was presented with the option of loosing my house or pay the credit cards.
Now, you are telling me that the lawyer might or might not agree to settle. I understand. My question is, should I offer them a lesser amount (30%) or should I set up a payment plan for the full amount and I am thinking of $ 30 a month until the debt is fulfilled. Now if they say no to all this options and we go to court, what the judge might say?

jk · 11-29-2008, 08:38 PM

if you go to court and the other side proves their case, you will find yourself facing a judgment for the entire amount. The judge does not lessen the amount if the greater is proven.

Can you claim that the amount of the debt is overlly inflated due to excessive charges by the credit card company

You can make that claim but from what little you have posted, you do owe the $1000.

as to what to offer; that's up to you. They may take a reduced offer but if they do, they will most likely want payment in full NOW. That is the only reason to take a reduced amount is becasue they can clear this entire deal now and not have to chase you for the money.