Start My Answer
loading...

How to Resolve an Arrow Financial Services Lawsuit

Chloe Meltzer | August 05, 2024

Chloe-Meltzer
Legal Expert
Chloe Meltzer, MA

Chloe Meltzer is an experienced content writer specializing in legal content creation. She holds a degree in English Literature from Arizona State University, complemented by a Master’s in Marketing from California Polytechnic State University-San Luis Obispo.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: To resolve a debt lawsuit against Arrow Financial Services, be sure to file a written Answer into the case to block a default judgment, then negotiate with the opposing attorney to resolve the case outside of course through debt settlement.

For anyone dealing with debt, it is not something to take lightly. Whether the bills are piling up or you are being sued for a specific debt, you may be contacted by Arrow Financial Services. In this case, you have rights, and you should know them.

Arrow Financial Corporation is a multi-bank holding company and debt collection agency with $3 billion in assets. It is based out of New York and has been accused of violating parts of the Fair Debt Collection Practices Act. The FDCPA protects you from debt collectors that use unfair, abusive, or deceptive treatment.

If you have received a summons for a debt lawsuit, do not panic. Millions of Americans suffer from debt in the United States and there are steps you can take to rectify the situation. In some cases, you may not even owe the debt, or you may have already paid it off. Regardless, you will need to respond to the lawsuit.

File a response to a debt collection lawsuit in 15 minutes with SoloSuit.

Settle debt with Arrow Financial Services

You can negotiate debt settlement at any stage of the collections process. SoloSettle makes it easy.

Settle with SoloSettle

Step 1: Respond to the lawsuit

The number one mistake that consumers make after being sued for debt is not responding to the notice of debt. This notice comes in the form of a letter as a summons. If you do owe the debt but cannot pay it, then you might throw the letter away. This is not what you want to do. Instead, you must respond.

If you fail to respond to the debt claim, then you are at risk of a default judgment. This is something that is obtained against you for not responding. This will allow Arrow Financial Services to take money directly from your bank account, or garnish your wages. This varies based on the state you are being sued in, but the debt collector may also be able to add in attorney's fees, court costs, or interest to the balance.

Once the collection agency or creditor files a lawsuit, it is then on record with the courts. This means you need to formally respond via a letter in certified mail. This is called an Answer. It is essential that you do not admit liability for the debt but instead force them to prove that you are responsible. Then you need to file your answer with the Clerk of Court, and send a certified stamped copy to Arrow Financial Services. Typically this needs to be done anywhere from 20 to 30 days from the date on the notice.

Step 2: Negotiate the debt

After you file an Answer to the lawsuit, shift your focus to settle the debt. Filing the Answer will block a default judgment so you can negotiate the debt settlement in the meantime. To negotiate, follow these expert tips from an attorney:

  • Be honest about your situation.
  • Tell Arrow Financial Services why you can't afford to pay.
  • Determine how much you can afford to pay off now, and make an offer.
  • Be ready to receive a counteroffer and go through several rounds of negotiations.
  • Only bring up bankruptcy if you really mean it.
  • Do all negotiating through the attorney in charge of the case.

To learn more about these tips and more, check out our interview with attorney John Skiba on how to settle debt:

Step 3: Challenge the legal right to sue

When you are being sued for debt the best way to respond to a debt lawsuit is to challenge the right to sue. This is because at this point, once the debt has reached the hands of Arrow Financial Services it will have passed through multiple other entities. Whoever owns the debt must show that they legally have the right to sue you. If they cannot do this, they cannot legally sue you for the debt.

If you do not respond you will not have the chance to settle the debt or ask for proof. If you do respond, then you can ask for the following proof:

  • Credit agreement signed by you
  • Chain of custody of all paperwork that shows the origination of the debt from the original creditor

Step 4: Push Back on Burden of Proof

When you get served for a debt the entity suing you will be required to prove that you are responsible for the debt, and also that they have the legal right to sue you. This will include showing you owe a specific amount. This can be done by showing the balance increased when you made purchases, or that it was increased by fees you agreed to originally. If they cannot do this, then you may be able to have the lawsuit dropped.

Use SoloSuit to respond to creditors and win in court.

Step 5: Examine the statute of limitations

The statutes of limitations are laws that state how long a creditor may sue you for debt. The rules that govern the statute will vary from state to state. In some states, the statute of limitations is three to six years, while in New York it is 20 years. It is important to note that the period of the statute will begin on the last day you made any type of activity on the account. Activity includes something as simple as making a payment or using a credit card attached to a debt account.

Step 6: File a countersuit

In some cases, a debt collector may have violated the Fair Debt Collection Practices Act (FDCPA). The FDCPA is a set of laws that debt collectors must adhere to. They essentially protect you from harassment, and debt collectors calling you at odd hours or mentioning your debt to your family and friends. If a debt collector violates the FDCPA then you may be able to file a countersuit and seek compensation for damages.

The Final Straw: Filing a Petition of Bankruptcy

When you owe a debt that you know you cannot pay back, the last resort is to file bankruptcy. Although this is not always the best option, if you are also dealing with other financial issues, then it may be a good option to help you get out of a hole. When you file for bankruptcy, all collection acts must cease. This can buy you some time, or get rid of your debt altogether.

Responding to a debt lawsuit is not always simple, and knowing your right will make it a lot easier. Whatever decision you make regarding your debt collection lawsuit, be aware that your financial accounts will follow you for the right of your life. Getting ahold of them now can greatly improve your chances of being out of debt in the future. Regardless of what you decide, be sure to respond to the debt lawsuit, and always force Arrow Financial Services to prove your debt.

We have answers.
Join our community of over 40,000 people.

You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now or are just looking for support, we're here for you.

Ask a Question.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit: A Student Solution To Give Utah Debtors A Fighting Chance

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Guides on how to resolve debt with every debt collector

Are you being sued by a debt collector? We’re making guides on how to resolve debt with each one.

Resolve your debt with your creditor

Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.

Settle your medical debt

Having a health challenge is stressful, but dealing medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Guides on arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Stop calls from debt collectors

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Federal debt collection laws can protect you

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Get debt relief in your state

We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.

Debt collection laws in all 50 states

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt state guides

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote a guide on each state’s statutes. Check it out below.

Statute of Limitations on Debt Collection by State (Best Guide)

Check the status of your court case

Don’t have time to go to your local courthouse to check the status of your case? We’ve created a guide on how to check the status of your case in every state, complete with online search tools and court directories.

How to stop wage garnishment in your state

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in all 50 states.

Other wage garnishment resources

How to settle a debt in your state

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created a guide on how to settle your debt in all 50 states. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

How to settle with every debt collector

Not sure how to negotiate a debt settlement with a debt collector? We are creating guides to help you know how to start the settlement conversation and increase your chances of coming to an agreement with every debt collector.

Other debt settlement resources

Personal loan and debt relief reviews

We give a factual review of the following debt consolidation, debt settlement, and loan organizations and companies to help you make an informed decision before you take on a debt.

How to repair and improve your credit score

Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt.

How to resolve student loan debt

Struggling with student debt? SoloSuit’s got you covered. Below are resources on handling student loan debt.

Civil law legal definitions

You can represent yourself in court. Save yourself the time and cost of finding an attorney, and use the following resources to understand legal definitions better and how they may apply to your case.

Get answers to these FAQs on debt collection

How-to debt guides

Learn more with these additional debt resources


It only takes 15 minutes.

And 50% of our customers' cases have been dismissed in the past.


"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather



Get Started

Contents