Help! I've Been Sued by Capital One

TL;DR

Learn how to handle original creditor lawsuits brought by Capital One and why settling is often a better strategy than litigation.

Transcript

hey everybody john skiba here and in this video i'm going to talk about original creditor lawsuits that are brought by capital one this is second in a three-part series that i'm doing on how to deal with original creditor lawsuits as opposed to junk debt buyer lawsuits that we deal with so much here on this youtube channel but if this is your first... Read More

Key Insights

• ❓ Capital One is one of the few creditors that usually does not sell their debt and brings lawsuits on their own.
• 🌞 When facing an original creditor lawsuit, settling through a lump sum payment or a long-term payment plan is often a more practical approach.
• 💼 Defenses used against junk debt buyers may not be as effective against original creditors, who are more likely to have the necessary evidence to support their case.
• 📁 Filing a motion to compel arbitration can be a viable defense strategy with both junk debt buyer and original creditor lawsuits.
• 💌 It is important to respond to the lawsuit and not let it go into default, even if the intention is to settle rather than go to trial.
• 💳 Understanding the terms and conditions of the original credit card agreement is crucial in determining the available defenses and settlement options.

Questions & Answers

Q: How can I differentiate between an original creditor lawsuit and a lawsuit brought by a junk debt buyer?

You can determine the plaintiff by reviewing the caption on the complaint and summons. If it is the actual credit card company that you took the card out with, it is an original creditor lawsuit.

Q: What is the recommended approach for dealing with original creditor lawsuits?

It is generally advisable to pursue a settlement strategy rather than going to trial. Original creditors are likely to have the necessary documents and employees to support their case, making it difficult to successfully defend against the lawsuit.

Q: What settlement options are available when dealing with an original creditor lawsuit?

You can either offer a lump sum payment, usually between 40 to 60 percent of the total amount owed, or enter into a long-term payment plan with the creditor.

Q: Can the strategy of filing a motion to compel arbitration be used in original creditor lawsuits?

Yes, the defense of filing a motion to compel arbitration can also be used with original creditors. If the credit card's terms and conditions include an arbitration clause, you can seek to enforce it to dismiss the lawsuit and go through private arbitration.

Summary & Key Takeaways

• Capital One is one of the few creditors that typically does not sell their debt and brings lawsuits on their own, unlike junk debt buyers.

• When faced with an original creditor lawsuit, it is more advisable to pursue a settlement strategy rather than litigation, as many defenses available against junk debt buyers may not be effective.

• Original creditors are more likely to have the necessary documents and employees to support their case, making it difficult to successfully dispute the debt.