Getting served with lawsuit papers from American Express can knock the wind right out of you. Your heart races, your mind spins, and panic sets in. We get it. A financial giant like American Express has massive legal teams and resources that might make you feel powerless.
But you don’t need to curl up in fear when faced with this challenge. With the right approach and knowledge, you can stand your ground against American Express and potentially come out ahead. Many people successfully fight back every day, and you can too.
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Ways to Handle a Credit Card Lawsuit
When you’re facing a lawsuit from American Express, it can feel overwhelming. It’s easy to get caught up in the legal jargon and assume that there’s no way you can fight back. But we have good news: it’s possible!
Here are five steps you can take to defend yourself against an American Express lawsuit:
1. Make Sure That Your Debt Is Accurate
If you’re facing a lawsuit, it’s important to make sure that your debt is accurate. Credit card companies can make mistakes, which can lead to unnecessary charges on your bill. If you find that your debt is inaccurate and you have been overcharged, then this will be a key part of your defense against an American Express lawsuit.
You have the right to obtain written proof of a debt under the Fair Debt Collection Practices Act (FDCPA), which is part of the Consumer Credit Protection Act. Send a certified letter requesting validation of the debt to the person suing you (return receipt desired) if you want to use this defense.
Legal representation is another option. You should at least schedule an initial appointment with a debt lawyer if you’re thinking about employing one before taking any action on your own.
2. Retain legal counsel
Another thing to do when faced with an American Express lawsuit is to retain legal counsel. There are several reasons why it’s important to have an attorney on your side when dealing with a credit card lawsuit — the most obvious being that they know the law better than you do! Additionally, they can help ensure that your rights are being honored while also working toward getting your case settled. A debt lawyer can help guide you through the process of resolving your debt dispute quickly and efficiently so that you can get back on track financially as soon as possible.
3. Negotiate
In most of these situations, American Express is the initial creditor. Therefore, they have the original paperwork necessary to substantiate their case. Unless this is an identity theft case or Amex doesn’t have any discovery papers, it is sensible to use the action thus far as leverage to settle. That’s why it’s crucial to know which legal firm you’re dealing with.
4. Contact a Credit Counselor
Your defaulted credit card debt may be settled using a different method before your trial date. A qualified credit counselor may be able to assist you in developing a debt management program (DMP) to assist in the gradual elimination of your credit card debt through a schedule of affordable monthly payments.
5. Check Out Your Alternatives
Settlement offers from American Express often fall within a range of 40–55 percent of the original amount owed. To negotiate a lower settlement, it is important to highlight any relevant hardships, such as financial or medical ones. On top of that, a lower settlement may be obtained when making a lump sum payment as opposed to a more drawn-out repayment schedule.
McCarthy lawyers have helped thousands resolve their debts and begin a new and beneficial financial journey. Our lawyers can discuss your personal debt settlement options with you during an appointment.
Why American Express Decides to Sue
American Express doesn’t immediately jump to lawsuits. They typically sue cardholders after several missed payments and multiple attempts to collect the debt. Here’s why they might take legal action:
- Persistent non-payment: If you’ve gone 6+ months without making minimum payments, your risk of being sued increases dramatically.
- Large outstanding balances: American Express prioritizes larger debts, usually $5,000 or more. The higher your balance, the more likely they’ll pursue legal action to recover their money.
- Failed settlement attempts: If you’ve ignored settlement offers or failed to stick to payment plans, American Express may see no option but court.
- No response to collection efforts: Ignoring calls, letters, and other communication attempts may push them toward litigation.
Remember that American Express views lawsuits as a last resort, but they won’t hesitate if they believe it’s the only way to recover their money.
What’s at Stake: Assets at Risk in an American Express Judgment
If American Express wins its case against you, a judge might order you to surrender various assets as payment. This court-ordered judgment gives them significant power over your finances:
- Bank account funds: Through garnishment, American Express can legally take money directly from your checking or savings accounts, often without advance notice.
- Wage garnishment: Up to 25% of your disposable income could be taken directly from your paycheck before you even see it.
- Property liens: They can place liens on your house or other real estate, collecting payment when you sell the property.
- Personal property: In some states, sheriffs can seize and auction valuable items like vehicles, electronics, or collectibles.
- Tax refunds: Court judgments may allow American Express to intercept your tax refunds before they reach you.
The consequences extend beyond immediate asset loss. A judgment can damage your credit score for seven years or more, making future loans and credit cards harder to get and more expensive.
The Statute of Limitations: Your Potential Time-Based Defense
One powerful tool in your defense arsenal might be the statute of limitations on credit card debt. This legal timeframe limits how long creditors have to sue you for unpaid debt:
- The clock typically starts on the date of your last payment or credit card activity.
- Depending on your state, the statute of limitations ranges from 3 to 10 years for credit card debt.
- If American Express files its lawsuit after this period expires, you can use this as grounds for dismissal.
However, be careful about making even small payments on old debt, as this can restart the clock and give American Express more time to sue. The statute works differently across states, so consulting with a lawyer about your specific situation is worthwhile. Even acknowledging the debt in writing can sometimes reset the clock, so proceed with caution when communicating with collectors.
The Danger of Default Judgments (And How to Avoid Them)
The biggest mistake you can make when sued by American Express? Doing nothing. When you ignore a lawsuit, the court automatically sides with American Express through a default judgment. This happens to roughly 90% of people sued by credit card companies.
A default judgment gives American Express nearly all the power. They can:
- Garnish your wages
- Freeze your bank account
- Place liens on your property
- Potentially force the sale of assets
Even if you think you can’t win, simply showing up and responding to the lawsuit keeps your options open. You’ll have time to:
- Review the allegations
- Gather evidence
- Consult with a lawyer
- Negotiate a settlement
- Develop a payment plan
The response deadline varies by state. Mark this date on your calendar and treat it as absolutely non-negotiable. Even filing a basic answer denying the claims prevents a default judgment and buys precious time to build your defense.
If you’ve already received a default judgment, you might still have options through a Motion to Vacate, but you must act quickly. These motions typically require showing good cause for why you didn’t respond initially.
Tough Doesn’t Mean Impossible. Fight Back With McCarthy Law
American Express can be tough to deal with and even tougher if you’re facing them alone. Their lawyers handle these cases daily and know every trick in the book. But that doesn’t mean you should give up.
With McCarthy Law by your side, you gain access to attorneys who know exactly how credit card companies operate and the legal standards they must meet. We’ve helped countless clients reduce their debt burden through strategic negotiation and aggressive legal defense.
Our team can help you evaluate your case, identify weaknesses in American Express’s claims, and develop a customized strategy that fits your financial situation.
So, instead of letting creditor lawsuits derail your financial future, contact McCarthy Law today for a free consultation about your American Express lawsuit. The sooner you reach out, the more options you’ll have to fight back.