Being sued by the original creditor can be kind of scary and intimidating. This is usually because consumers believe that the original creditor, especially if it’s a large company or bank, will have all of the documentation and paperwork that are sure to get you pinned and wipe out any case you may have. Based on personal experience I can tell you that this is not always true so don’t just automatically settle the debt.

Back in 2002 I was sued by Capital One, and not knowing any better, I called the law firm to settle the debt that I supposedly owed. After I paid off the entire debt, they claimed that I still owed $24 and change. I was also told that since we had reached a settlement, the law firm would contact the court and I wouldn’t have a judgment filed against me. Upon receiving the $24 bill, I told them that I had already paid everything in full. I made copies of every single payment and sent them off to them. However, I never heard back from them. When I pulled my credit report, I discovered that the law firm in NW Indiana had placed a judgment on my credit report claiming that I never paid the bill which automatically puts a lien on my house. You can imagine the frustration I felt, so I called them and argued about it and got that removed. Take it from me, they don’t think you know anything about what’s going on or that you will do anything about it.

Notice that when I did settle, I still received a judgment and they tried to manipulate me. So, I made a vow to never settle again with these unethical companies. Capital One never reported that my bill was paid on my credit report, and I had to dispute it with the Credit Bureau.

I was sued by Capital One in Indiana, and they did not attach anything but an affidavit without an account number listed. There is obviously no proof that it is my account. You have to watch out for missing information like this when someone is claiming you owe money or it is your account. Assuming I had nothing to lose, I filed for a motion to dismiss case for failure to comply with my court rule – not attaching the contract. My case was “Dismissed Without Prejudice”! I was extremely pleased with myself until 30 days passed and I received an amended complaint that Capital One had done totally wrong. Now every single credit card statement as well as an affidavit from one of the Capital One Bank employees was attached to the newly amended complaint.

Since it did not list my account number and had an old address from when I lived in Illinois, I claimed statute of limitations as a defense among other things.

The Judge set this for hearing. At the court house Capital One’s lawyer pulled me aside into a room and told me that I need to settle because I would lose at the hearing, and I told him no. I told him that what they did was wrong and that we would just see what the judge has to say. He continued to tell me that I was wrong and advised me to settle before the hearing. I told him that I didn’t have to do anything.

The Outcome: The Judge said that Capital One filed their amended pleading incorrectly and needed to re-file it, and then he would rule on my motion to dismiss and motion to strike. Imagine how pleased and amused I was after hearing the Judge’s words. I waited the 30 days that they were allowed, and no amended pleading was given by Capital One. The judge granted my motion to dismiss and motion to strike the affidavit. I won the case!

My advice to you or any Capital One/junk debt fighting defendants: If possible, take the time to see exactly what Capital One or the debt buyers have on you. Not every attorney does everything correctly.

If Capital One had every single credit card statement of mine and an affidavit they could have just amended their complaint right away. However, they were looking for an easy settlement so once they realized that I wasn’t going to give up a fight, they moved on to the next easy default judgment.

How I beat Capital One in Court

Additional Reading

• Example Motion To Dismiss Credit Card Debt
• LVNV Funding Lawsuits