When it comes to receiving credit card lawsuits, there are debt buyers who will present a case, and then there are credit card issuers that will present a case. The main purpose of both companies when filing a suit is to get judgment against the consumer. They would like to have all the money stripped from the debtor through a default judgment. This could easily be the case if the defendant doesn’t even respond to the summons and just ignores the lawsuit. If the court summons is ignored and a judgment has been issued, the debt collectors can garnish a person’s bank account, take their savings and sometimes even their assets.

Here are a few of the facts regarding Citibank:

• Citibank is the largest international credit card issuer and largest bank in the country.
• Citibank offers some very appealing credit cards.
• When customers sign up for a Citibank credit card they have no intention of defaulting.
• Citibank is known to sue cardholders shortly after missing just a few payments.
• The credit card company has formulated a system that allows them to sue their clients at a much lower cost than most creditors.
• Defendants can protect themselves under the FDCPA (Fair Debt Collection Practices Act) for unfair and deceptive collection practices.

Within recent years Citibank, one of the largest global credit card issuers, has been caught participating in some unlawful practices when dealing with credit cardholders. There was a federal class action lawsuit claiming that Citibank induces cardholders into paying for charges that they are not even obligated to pay according to their contract. Citibank achieved this by falsely claiming that the cardholder only has 60 days to dispute a charge. Customers that find Citibank’s credit card services unsatisfactory have the right to dispute the charge and not have to pay the remaining amount on their purchase according to the contract. However, most customers have been under the false impression that they must pay for the purchase. Then Citibank tells them that they’ve waived their right to withhold payment to the credit card contract.

Despite the unlawful practices like unjust enrichment, breach of contract and breach of implied covenant of good faith and fair dealing, consumers going up against debt lawsuits should be aware of the tricks when fighting their own case.

Usually high costs are associated with taking legal action against customers for the typically bank or creditor, but with the system that Citibank has devised they are able to sue their clients at a lower cost than most.

It has been stated that given any opportunity, Citibank will sue anyone and everyone. (I even know of a district attorney who has been sued by the credit card company.) As the original creditor, Citibank will usually hire local attorneys and file a lawsuit against the card holder for their unpaid balance and add plenty of fees. However, most collection attorneys are not suing under the name of the bank – Citibank. They likely bought the account/debts months prior from Citibank and just use the bank’s name as the plaintiff, which is unethical. Defendants can protect themselves under the Fair Debt Collection Practices Act by suing for unfair and deceptive collection practices and pointing this out to the judge. A motion to dismiss might also be appropriate in such a situation. Everyone’s situation is unique.

Once the bank realizes that the defendant means business and sees that their name is involved with the misrepresentation made by the collection attorney, they will claim to have no interest in the matter and move to dismiss, leaving those attorneys high and dry. It is important that any consumer who decides to defend himself in a credit card lawsuit, reviews all of the court rules and is aware of his rights. Details like this, that many defendants might overlook, could get the entire case thrown out if caught and brought to the court’s attention.

As of two years ago Citibank became the largest bank holding company in the country. Citibank is the largest international credit card issuer having expanded its global reach to more than 90 countries. This could definitely cause some intimidation among customers who receive a debt lawsuit summons for their credit card account. Luckily, when it comes to the court of law, the size and reputation of a company won’t matter as much if they are breaking the law. One must know their rights and their local statutes so that justice can be served. Winning a credit card lawsuit against Citibank may seem tough and take some work and extra effort, but it can be done. If possible, try to uncover whether the debt collectors suing you genuinely represent Citibank. If they are not, it could be easier to get a settlement or get the case dismissed.

Additional Reading

• How To Beat Credit Card Debt Lawsuit
• The Defendant’s Package

Tags: Citibank credit card lawsuits, Citibank lawsuit