Sued by Citibank Credit Card? (2024)

FAQs

What happens if Citibank sues you? ›

Citibank could get a default judgment against you, which legally entitles it to the money it alleges you owe because you did not respond to the lawsuit or show up in court. With a default judgment, Citibank may try to obtain the alleged debt in the following ways: Bank garnishment, or freezing your bank accounts.

The attorney general sued Citibank in January. She said the failure of its security systems to effectively investigate red flags such as using unrecognized devices, changing user names and passwords, and "phishing" enabled scammers to steal millions of dollars.

Though there's no set timeline, you can expect legal action after six months of nonpayment. While there are no guarantees, you're less likely to be sued if you owe less than $2,000.

You may lose the ability to dispute the debt, if you believe you don't owe it or that the amount is wrong, and depending on your situation and your state's laws, the creditor may be able to: Garnish your wages. Place a lien against your property. Move to freeze funds in your bank account.

If you don't pay your Adjusted New Balance in full, plus any Citi Flex Plan Payment Amount, by the payment due date in a Billing Period, you'll pay interest on your Purchases from the date they're posted to your Account.

Settle debt with Citibank.

You can negotiate debt settlement at any stage of the collections process.

The lawsuit alleges that Citi does not implement strong online protections to stop unauthorized account takeovers, misleads account holders about their rights after their accounts are hacked and funds are stolen, and illegally denies reimbursem*nt to victims of fraud.

Just responding will increase your chances of winning. The alternative is to ignore the lawsuit and lose automatically when a default judgment is entered against you. With a default judgment, Citibank collections can garnish your wages and seize your property. Don't let this happen to you.

Lawsuits aren't very common, but they do happen regularly. According to a Consumer Financial Protection Bureau (CFPB) report, credit card companies sue for non-payment in about one of every seven cases or nearly 15% of the time. The average litigated account balances ranged from $2,700 to $12,300.

Which credit cards sue the most? ›

A ProPublica analysis of state court filings reveals that Capital One sues its customers far more than any other bank.

You're unlikely to be sued until your payment is six months late or more. If you're behind on your credit card payments and worried about the possibility of getting sued, read on to learn more about the process, how to fight back – or, better yet, how to avoid it in the first place.

You can negotiate debt settlement at any stage of the collections process, even after you've been sued by a credit card company.

Summary: If you're being sued by a debt collector, here are five ways you can fight back in court and win: 1) Respond to the lawsuit, 2) make the debt collector prove their case, 3) use the statute of limitations as a defense, 4) file a Motion to Compel Arbitration, and 5) negotiate a settlement offer.

After a judgment has been rendered against you, fortunately, you may still be able to get the creditor to agree to allow you to pay less than the total amount owed. This can be done by entering a settlement agreement, in which an attorney can be of great assistance.

Credit card companies can garnish (take) your wages just like most other creditors. But before taking part of your pay, the credit card company must first sue you in court to get a money judgment and a court order directing your employer to deduct funds from your pay.

When a creditor or collection agency sues you for nonpayment of a debt, you'll get a copy of the complaint (lawsuit) and the chance to respond. After you file and serve your response to the creditor lawsuit, you'll receive written notification of all further proceedings in your case.

How likely is it that you will be sued for a debt? According to one Consumer Financial Protection Bureau report, 1 in 7 — or about 15% — of consumers contacted about a debt in collections were sued. But the likelihood of a debt collection lawsuit depends on several factors.