Start My Answer

Sued by Webbank — How to Win

Chloe Meltzer | January 10, 2024

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: WebBank is a digital bank, based in Utah, that finances companies in all sorts of industries. WebBank is known its predatory interest rates, and it has even been involved in some class action lawsuits because of it. If you are being sued by WebBank, use SoloSuit to draft and file your response before your state's deadline.

If WebBank is suing you, 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 take to improve your situation. It might feel like you should avoid it, but that is the last thing you should do.

It is commonly known that WebBank, a consumer debt agency, forces customers to sign contracts. It's common to never receive a copy of your contacts with WebBank 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 a debt by WebBank, you can respond and beat them in court.

Here's how.

Don't let debt collectors get a default judgment against you; respond with SoloSuit.

What is WebBank, and how does it work?

Located in Salt Lake City, UT, WebBank is a “national issuer of consumer and small business credit products,” which is just a fancy way of saying it is a bank that funds consumer and commercial loan products, revolving lines of credit, credit cards, private-label card issuance, auto-refinancing and more. WebBank has been known to finance companies like Fingerhut, Dell Computer, Yamaha, Avant, Klarna, Lending Club, Onemain Financial, and Paypal, to name a few.

If you've entered an agreement with any of the companies or services listed above, it is likely that WebBank financed it. So, when WebBank comes after you for a debt you owe, you might not even recognize the name “WebBank.” They might even sell your debt account to a debt collection agency or hire one to collect on their behalf, which makes things even more confusing.

You can reach WebBank at the following address:

215 S. State St.
Suite 1000
Salt Lake City, UT 84111

If you're being sued by WebBank, the first step to winning in court is to understand your rights and to file an Answer to the lawsuit.

You have rights that protect you under the FDCPA

The Fair Debt Collection Practices Act (FDCPA) protects consumers, like you, from unethical debt collection practices. For example, the FDCPA prohibits debt collectors from:

  • Calling consumers before 8 a.m. or after 9 p.m.
  • Using abusive, threatening, or vulgar language to intimidate consumers into paying off a debt.
  • Threatening to arrest or take legal action that they cannot or do not plan to take.
  • Pretending to be the police or a judge.
  • Discussing a consumer's debt with their friends, family, or coworkers.
  • Calling consumers at their workplace when the employer prohibits such communications.

These are just some of the ways that the FDCPA protects consumers. If WebBank collectors or a debt collection agency representing WebBank, have used any of these tactics to get you to pay off your debt, report it to the FTC, CFPB, or your state's attorney general. You may be eligible for compensation of up to $1,000 per violation of the FDCPA.

Respond to a debt lawsuit against WebBank

If WebBank is coming after you for a debt, don't ignore it, especially if you're being sued. This will only result in a default judgment, which gives WebBank the ability to garnish your wages, seize your property, or even take money directly from your bank account.

If you've been sued by WebBank, respond immediately by filing an Answer with the court and sending a copy of it to the attorneys representing WebBank. Check out this video to learn more about how to respond to a debt collection lawsuit:

What you need to know about the hearing

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. The case will be dismissed if they cannot prove that you owe the debt or that they own the debt and have the right to pursue you for it.

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 without knowing 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.

How does the WebBank arbitration clause work?

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 the chances of WebBank dropping a lawsuit. 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 often not worth the cost of the debt. For example, the filing costs for arbitration can range from a few hundred dollars to $2,500 or more. If your initial contract with WebBank contains a mandatory arbitration clause, WebBank may have no choice but to pursue arbitration before filing a lawsuit. If you exercise your right to arbitration, WebBank may decide to drop the case altogether. Regardless, there are a few things you need to do if WebBank has sued you.

WebBank was involved in a Supreme Court class action lawsuit

A Motion to Compel Arbitration in Bethune v. Lending Club Corporation et al., spun a carefully-watched class action suit. In this case, the plaintiff filed a complaint in April 2016 disputing a loan received through Lending Club's online platform and provided by WebBank.

To understand the heart of the case, it is essential to understand that most states have “usury laws” designed to protect consumers from predatory interest rates. The plaintiff, Mr. Bethune, filed the class action lawsuit claiming that WebBank took advantage of consumers by using the usury laws of it's chartered state of Utah, instead of complying with the laws of the state where each consumer resides. Mr. Bethune is from New York, where interest rates are capped at 16%. Utah's interest rates, with a contract, are capped at 50%.

Mr. Bethune claimed that by lending to borrowers at interest rates higher than the usury caps in the borrowers' home states, the defendants broke state usury laws and state consumer protection laws.

The court quickly dismissed the plaintiff's "perfunctory" argument that the arbitration agreement was inherently unconscionable. The plaintiff had 30 days to opt-out of the arbitration clause, and failed to do so. Therefore, the district court where the case was filed upheld the defendant's right to force the issue into arbitration. The stated arbitration clause required that the issue be arbitrated on an individual basis, protecting the lender from a class action suit. Lending Tree eventually agreed to pay a $2 million penalty to resolve the allegations. Both Lending Tree and WebBank made no admission of responsibility.

How does WebBank Fingerhut work?

The Fingerhut FreshStart installment loan and the Fingerhut Advantage Credit Account are offered through WebBank. These items can be used to finance orders placed through Fingerhut's catalog or website.

The WebBank Fingerhut Credit Account is a revolving line of credit, much like a credit card. It is promoted as a solution for internet buyers to establish credit while making periodic payments on their goods.

Is Fingerhut suing me?

If you owe Fingerhut money, they have the right to sue you and possibly obtain a judgment against you. The first step to winning in court is to file your Answer. You can use SoloSuit to respond to the lawsuit in just 15 minutes.

What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

Respond with SoloSuit

"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

Get Started

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. (We can help you in all 50 states.)

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.

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.

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