If you have been sued by Capital One, there are a few things you should know.
First, you should never ignore a lawsuit. If you fail to respond, Capital One can obtain a legal judgment against you, which could garnish your wages or freeze your bank accounts.
Second, if you do respond to the lawsuit, there is a good chance you will not have to pay anything. This is because Capital One is so huge that it often cannot get out of its own way.
When someone who owes credit card debt turns and demands that Capital One prove its case, more often than not, the company does not have sufficient documentation or it simply does not show up to court. If this happens, you win! The key is to respond with an Answer within the allotted time frame.
A lawsuit can be a scary thing, especially if you’ve never had to deal with one before. But don’t worry – we’re here to help. This article will explain some basics about Capital One, and then show you how easy it is to respond to a debt collection lawsuit filed by them.
Capital One Debt Collection Process
If you have a debt with Capital One, be prepared for aggressive collection practices. This can include incessant phone calls and letters, as well as harassment.
Additionally, Capital One will report any late payments or outstanding debts to the three major credit reporting bureaus, which can have a lasting impact on your credit score.
Julio Lugo experienced this first-hand when he was sued by Capital One in 2018. As a New Yorker working at Mount Sinai Hospital in Manhattan, he found himself drafted into 16-hour days during the COVID pandemic and losing track of the days. This didn’t stop Capitol One from garnishing a substantial portion of his wages during the pandemic, creating an even greater hardship for him and his family.
Remember, you do have options if you owe money to Capital One. If you have the means to pay the outstanding debt, you can consider asking them for a goodwill deletion to remove harmful information from your credit report. Explain why your payment(s) were late, and ask if they will consider a goodwill deletion. You can contact this company at 1-800-955-7070.
Is Capital One a Big Company?
Back in 1994, Capital One was created out of other older financial companies with a single product in mind: credit cards, a relatively risky strategy. From that moment on, Capital One inundated the market with commercial advertisements for its credit card services. Now, Capital One’s holding company, Capital One Financial Corporation, is number ten on the list of the largest banks in the United States.
Capital One differs from other credit card companies in one respect. While most credit card companies will sell their defaulted (i.e., unpaid with a balance due) accounts to a smaller company that focuses on debt collection specifically, Capital One sometimes keeps the account and issues a lawsuit itself.
That is why if you have an unpaid balance on your credit card that has been around for a few months, they will sue you directly.
Which Capital One Credit Cards are Available?
Credit cards are a big part of many people’s lives. And when it comes to credit cards, few companies are as big or well-known as Capital One.
If you are looking to improve your credit score or recover from debt, a secured credit card can help you rebuild a healthy credit profile.
With a deposit as your collateral, they will allow you to establish credit by paying your bills on time. Once you have proved your financial responsibility, Capital One will raise your credit limit above the amount of your deposit.
A cashback credit card allows you to earn money back on select purchases, making it a great choice for those who want to save money on their spending.
Travel reward credit cards offer various benefits for those who travel frequently, including rewards and points that can be redeemed for free travel.
Business credit cards are ideal for tracking employee spending and keeping business and personal finances separate. They also often come with higher limits than personal credit cards.
If you’re looking to save money in the long run, consider getting a store card from Capital One. With no annual fee and lower interest rates, these cards can help you keep more of your hard-earned cash.
How can I Defeat a Giant Like Capital One?
If you want to win your case against this company, start by responding to their complaint with an Answer.
An Answer is not difficult to create, but it can be daunting if you have never done it before. This is where Crixeo comes in handy. Just think of Crixeo as your own personal “sling” that will help you defeat them.
There are a few simple rules you should keep in mind when creating your Answer to Capital One’s Complaint:
- Respond to each numbered allegation against you in detail
- Include your Affirmative Defenses
- File your Answer on time
Let’s break each of these steps down a little further:
Step 1: Provide a response to each allegation listed in the complaint
The court system expects a party who is Answering a Complaint to either “admit” or “deny” each numbered paragraph of the Complaint. If you look at the Complaint, you will see that each factual allegation is numbered.
So, like in any regular argument, you tell the other person whether his or her allegations are true (“admit”) or false (“deny”). Also, if you honestly do not know whether something is true or not, be sure to either “deny” the allegation or say “I don’t know.”
David was sued by Capital One in 2022 for falling behind on his credit card payments in 2014. He was confused at first because he didn’t even remember owing any money to Capital One.
When he looked closer at the complaint, he realized that most of the claims against him were untrue. He used Crixeo to draft his own answer document and denied all the allegations listed in the complaint. A few months later, the court notified David that Capital One had decided to drop the case because the debt was past the statute of limitations in Massachusetts.
Step 2: Be sure to include your affirmative defenses
If you are being sued by Capital One, there are a few things you can do to try and get the case dismissed.
First, you can refute the facts that they are presenting. Second, you can state the reasons why Capital One should not win the lawsuit.
Perhaps you paid off the balance, or it is not your credit card, or Capital One filed suit beyond the applicable statute of limitations. If you have reasons why Capital One is wrong to sue you, then you should say so.
When Capital One sued David for credit card debt, he was surprised and confused. He had never applied for a credit card with the company, and he didn’t understand why he was being sued in New York – a state he hadn’t lived in for over 9 years.
Thankfully, David filled out an Answer document form. He filled it out, including his affirmative defenses section where he stated that the debt wasn’t his and that he was being sued in the wrong state. Capital One quickly dismissed the case after realizing they had made a mistake.
Step 3: Don’t forget to file your answer on time
If Capital One sues over an unpaid debt, it’s important to file an Answer with the court before the deadline. Depending on which state you live in, this deadline could be 14-35 days after the lawsuit is filed.
If Capital One wins a default judgment, they could garnish your wages or place liens against certain assets. This means that if try to sell your home, boat, or car, they could get the money from the sale to satisfy the judgment against you. So don’t let them win by default! The longer to take action, the greater the probability of a financial loss.
Read the Credit Card Agreement from Capital One
Most people don’t bother reading the full credit card agreement before activating a new card. However, not doing so can end up costing you a lot of money in fees and other charges.
You can find most credit card agreements on the Consumer Financial Protection Bureau’s website.
Make sure to pay attention to the following things in the agreement: account fees and charges, arbitration clause, your rights as a consumer, what can trigger a default, and what will happen if your account goes into default.
An arbitration clause is used by lenders to protect themselves from court actions challenging their fees, debt collection practices, and other policies. This clause blocks a consumer’s legal right and often limits potential relief that they could receive, especially in class action lawsuits.
Under most arbitration clauses, consumers are only allowed to take small claims court if they want to bring an action against a credit card company.
If you are thinking about working with Capital One, be sure to read the fine print regarding their arbitration clause. It is important to note that they do not have such a clause in place. This lack of a clause could pose problems if Capital One takes actions outside of what is stated in its credit agreement.
In 2009, Capital One was one of several major card issuers who agreed to suspend their arbitration clause through 2013. This action came as a direct result of a settlement involving anti-trust claims. However, after 2013 Capital One never reinstated the arbitration clause.
If Capital One takes any actions outside of what is listed in their credit agreement, you have the right to take legal action. A Capital One credit card lawsuit does not have to be as intimidating as it may sound. Although it seems like Capital One sues everyone who defaults on their credit card payments, this does not mean they always win these suits.
Capital One Can Be Defeated in Court
If you owe Capital One money, don’t ignore the lawsuit. Instead, respond to it and see if you can get the case dismissed. If not, try to negotiate a resolution.
Dealing with the lawsuit now will save you from wage garnishment, a damaged credit rating, and other problems down the road. Don’t let Capital One push you around. Fight back!
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