How Can I stop a Credit Card Lawsuit from Chase?

Question

I am being sued by Chase Credit Card. Initially I owed them about $2,000. I spoke to one of their representative and we came to an agreement that if I paid $1,000, my credit card was going to be restored. After paying the $1,000, the bank refused to restore my card, so I stopped paying. Now they are suing me for $1,600 and I have 30 days to respond to the summons. What is my best option at this point?

Douglas Dern · Answer

Yes.

S Hunter · Answer

The biggest question is did you get the $1000 settlement in writing. If not you have no proof and you will lose. Credit Card companies make these promises all the time and then break them. If you did not get it in writing you are most likely on the hook for the debt. There are certain defenses that may apply depending upon your circumstances.

Dennis P. Mikko · Answer

Since you are being sued, you must answer the complaint if you wish to defend against the suit.  As an affirmative defense you could site the agreement you had with Chase.  Is the agreement in writing?  Is there a memorandum of the agreement?  If it is just a verbal statement from an employee you may have a problem proving it.  That does not mean you should not try.  Once you start defending the suit, there is always the possibility of settlement for less than the amount they claim is owed.

Lorena Saedi · Answer

I would not recommend filing bankruptcy on this small amount of debt but I would attempt to work out a settlement plan before your court date.  If you cannot reach one then you will need to appear and present the facts to the judge and see what judgment is entered.  If you have other debts however you may want to speak with a bankruptcy attorney to see what options are available.

Austin Hirschhorn · Answer

You need to immediately hire a lawyer to defend you.  If the facts as you state them can be proved you would have a defense to the claim.  I assume that there may not be any documentation about the settlement agreement but if you have notes about the person or persons you spoke with and made the agreement with it is possible to use the court process to subpoena the account records from Chase to determine if they support your statement about the agreement that was reached. If you have any documentation that supports what you say such as a letter transmitting the payment on the settlement stating the agreement regarding the settlement it would then be a credibility issue as to what you are saying and what Chase is claiming.  The biggest issue you will be facing is that the cost of litigating this matter could easily be more than the amount that is being claimed and it might make sense for you to try to make a settlement with Chase.  I know you tried this before and it does not seem to have worked but your choices at this point are limited and if you do nothing Chase will get a Judgment against you that they will be able to enforce.

Diann Moseley · Answer

Consider filing a chapter 7 bankruptcy. If you qualify for a chapter 7 bankruptcy and file the bankruptcy before your Chase court date, the matter will be stayed which means that you will not be required to appear in court for the Chase case. Upon the successful completion of your bankruptcy, all unsecured debts will be discharged.

Edward Olson · Answer

Your best option is to call them and settle the account at the lowest price they will accept.

Shilo Naomi Borja · Answer

Filing Bankruptcy is an option, but not one to be taken lightly. It will depend on your income and how much total debt you have. You can also file an answer to the complaint offering breach of contract on Chase's part as a defense, if they indeed offered to reinstate your credit card and then failed to do so upon receipt of your payment. You should, however, have that in writing to make a valid defense out of it.

Leonard Schwartz · Answer

You do not say that they would accept $1,000 as a full settlement of the debt.  If that is the case then file an Answer to the Complaint denying that you owe the rest of the money. If not, you should try again to reach a settlement, making sure it is in writing. Or just make arrangements to pay out the balance due.  b

Todd Whiteley · Answer

Bankruptcy would discharge the debt, but if that is your only debt ($1600), it would cost you approximately that same amount to file a chapter 7.  If you have other non-priority, unsecured debt, then bankruptcy could benefit you and stop the civil lawsuit.  If you don't have other unsecured debt, then, I believe, your best bet is to try to settle the debt or pay the amount.  But you must get the signed settlement agreement prior to or concurrent with your payment.

Matthew Frisby · Answer

First and foremost do not let the 30 days pass without responding (answering) the summons. Failure to answer a duly served summons could cause a default judgment to be rendered against you. If you owe Chase $2000 ultimately you will have to pay what you owe and possibly more (with costs, expenses and attorney fees) unless you are able to negotiate some amount lower than $2000.00. Based on the facts provided, I suspect your agreement to pay $1000.00 (on a debt you allegedly already owed) did not reduce you overall debt obligation to Chase so you will want to make sure the $1000.00 you paid them was credited to your account. I would request an itemized accounting of all payments made by you to verify what they say you owe them is actually what you owe.  Once you have answered the summons you can then attempt to work on some form of payment plan for rest of the amount that is legitimately owed. The information here has been prepared for informational purposes only and should not be construed as legal advice or a legal opinion on any specific facts or circumstances. Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship between the sender and receiver. Readers should not act upon this information without seeking professional counsel.

Jeffrey Solomon · Answer

Be sure you do not miss the deadline to file a response with the court to contest the credit card claim.  You can raise as a defense that you had a settlement agreement which they breached.  You should consult an attorney, though I do realize this appears to be small claims court.

Roberta Ohlinger-Johnson · Answer

The information you've given would indicate an affirmative defense to the suit.  An Answer should be filed.  However, a lawsuit is a process and not necessarily an event, so a filing an Answer alone does not "stop" them. There are many other steps and questions to determine whether you should defend a lawsuit and how to do so.  Including whether you have the evidence to win your defense and how to present it.

Kevin Bruning · Answer

There are a few things I'd ask you about before giving you a full answer, though. Did you receive anything in writing about the $1000 settlement that Chase agreed to accept from you related to your card? Was the agreement only to restore functionality to your card, or was it that the $1000 would be in full satisfaction of the $2000 that you originally owed them? Those questions are important in determining what you should do about the lawsuit. If they agreed to accept the $1000 in satisfaction of the debt you owed them (basically giving you a break on the remaining $1000), then you have a good argument to defend yourself in court. If not, then it will be more complicated. If you don't do anything, you are at risk for them attempting to collect from you after getting a judgment, and doing things such as filing a lien against any property you own or attempting to garnish your wages, if you receive any pay from an employer. I would suggest talking to an attorney that focuses their practice on debt relief and consumer protection issues.

Harry Roth · Answer

You need to answer the lawsuit, in writing, and tell the court what you told me.  Get some help if you don't know how to do that so that your rights will be protected.  Once you have done that, call the attorney and try to work out a deal.  They are going to be on a total one-way-street of collect, collect, collect and it will be very hard for you to get their attention.  They will not voluntarily go away without some payment and you may want to just go to court. What they are counting on is that you won't know what you are doing and therefore will do nothing and they will win by default.  The way to win is to keep pushing back and keep saying "no" and keep responding to everything they throw at you paperworkwise and make it clear to them that it is going to cost them bigtime to win and they may as well settle.  Without counsel that will be quite hard, but it can be done.  You can forget about getting another credit card from these people ever.

Robert De Groot · Answer

Respond to the summons, and it is usually only 20 days from service of process, not 30. Perhaps they would be willing to stipulate to payments, and then dismiss the case, or get a judgment if you fail to pay.

Steven Alpers · Answer

You have 30 days to respond. You can defend by providing proof to the court of your deal. If you have emails or letters. You would have to file an answer in the court where you are being sued and request a trial. If the judge believes you chase should lose. I am not sure if you are asking about a bankruptcy, but this is not enough debt alone to file for bankruptcy.

James Weiner · Answer

To stop the suit pay the balance due. Your agreement was to restore the card to continue the line of credit not to wipe out the balance of the debt.

Jeffrey Dworin · Answer

Unless you plan to file bankruptcy anyways, answer the summons & state release, waiver, and accord and satisfaction as affirmative defenses.

Bernal Ojeda · Answer

Pay the debt, respond to the lawsuit or file bankruptcy if you cannot meet your credit card or other debts.

Joseph Rogers · Answer

We would need additional information about your other debts and household income to determine if some form of bankruptcy would be an option.  Outside of a bankruptcy you would either need to challenge the law suit if there is a legal basis to question the validity of the debt or work out a payment plan with the creditor.

George Gingo · Answer

Your best option is to sue Chase for breach.  You had an agreement, (in writing I hope) and you performed under that agreement (need written proof of payment) and Chase breached.

Stuart Nachbar · Answer

Use what they said against them, especially if you have it in writing and  state that you detrimentally relied upon their promise to reinstate card for  bulk payment.

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