September 17, 2021
Summary: Got Webbank after you for an old debt? Worried they'll take everything you've got? Learn how to stand up against Webbank and win in court.
If you are being sued by Webbank, then you need to know exactly how to respond to avoid making matters worse. Although it might feel like you have no hope, there are many avenues that you can go down to make your situation get better. It might feel like you should avoid it, but that is the last thing you should do.
Especially when it comes to WebBank, which is a consumer debt agency, it is known that they force all of their customers into a contract. Oftentimes you will not even be given a copy, which is because mandatory arbitration is required in these contracts. This can make it difficult for customers to file suit in court. Despite this, if you are being pursued for debt with Webbank you must know how to approach the situation.
Because WebBank requires arbitration, you should not feel powerless. Webbank requires this to limit their damages but you can use it against them to increase your payout. Arbitration typically only helps Webbank when it comes to class action lawsuits or larger cases over $10,000.
When it comes to smaller cases under $10,000, arbitration is not worth the cost of the debt. For example, the filing costs alone are over $2,500, and this does not include the legal fees. If you go through the route of arbitration rather than small claims court, Webbank may decide to drop the case altogether. Regardless, there are a few things you need to do if you have been sued by Webbank.
Whatever you do, when being sued for debt do not ignore the lawsuit. This will only result in a default judgment. This allows Webbank the ability to garnish your wages, or even take money directly from your bank account. It can also put your property at risk. This also reduces your ability to dispute the debt.
Although generating an “Answer” may seem difficult, it is important to get it done and do it right. Some local legal aid offices offer low-cost or free services to help with this.
If you are being sued by Webbank you will need to gather all of the information you have. Even if you do not have the original credit agreement, you should still try to fight it. You may have received information in the mail, as well as a debt validation letter. This should help you to gather information about your debt. For example, it should help you understand who is suing you, if it is a legal suit, and if the debt is accurate. There are often errors when it comes to debt lawsuits.
You should also investigate if the debt is passed the statute of limitations. When this passes the debt will be considered “time-barred.” This means you cannot be legally sued for the debt. Although collectors may attempt to collect on your debt, this is a violation. It is important to note that it will continue to hurt your credit score if you do not pay it.
When you go to your debt collections hearing you will be able to plead your case. Whether you owe the debt or do not owe the debt, you should still try to find an affirmative defense. For example, you can always ask Webbank to prove that you owe the debt. If they cannot prove that they own the debt and have the right to pursue you for it, then the case will be dismissed.
You can also attempt to settle before going to your hearing as well. This can allow you to have other options such as setting up a payment plan or settling for a lower amount than you originally owed.
In some cases, you may not feel that you owe the debt. This might be a situation where you can invoke other affirmative defenses. In these cases, you may have purchased something defective or that never arrived, or the contract was originally illegal. You may also have signed it unknowing of the terms. In any case, these are defenses against a Webbank suit.
Whatever your situation, making your decision is one that can only be done based on your situation. But what you must remember is to always respond to a debt collection lawsuit.
SoloSuit makes it easy to respond to a debt collection lawsuit.
How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.
"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James
Here's a list of guides for other states.
Being sued by a different debt collector? We're making guides on how to beat each one.
Is your credit card company suing you? Learn how you can beat each one.
Need more info on statutes of limitations? Read our 50-state guide.
Need help managing your finances? Check out these resources.