If you’ve received a lawsuit notice from Discover Bank, you’re not alone. Many people find themselves in this situation due to unpaid credit card debts. While it may feel overwhelming, knowing your rights and how to respond can make a big difference. Learn more about why Discover might sue you, how to respond, and how to protect yourself.
Who is Discover Bank?
Founded in 1985, Discover Financial Services introduced the Discover Card, which became one of the largest credit card brands in the U.S.
Discover Bank is part of the larger Discover Financial Services group. It’s primarily recognized as a credit card company, but it offers a range of other financial products as well, including personal loans, student loans, and banking services like savings accounts and certificates of deposit (CDs).
Discover Bank Reviews and Complaints
Like many major financial institutions, Discover Bank has its share of customer complaints.
Discover Bank holds an A+ rating with the Better Business Bureau (BBB). However, it is not BBB-accredited and has received thousands of complaints related to customer service and debt collection practices. A significant number of these complaints have been resolved, with 3,199 complaints closed in the last three years.
The Consumer Financial Protection Bureau (CFPB) has also logged complaints against Discover Bank, particularly related to debt collection and credit reporting issues. Checking the CFPB complaint database can give insight into how Discover handles disputes.
What Happens If You Get Sued by Discover Bank?
If Discover Bank sues you, it’s likely because of unpaid debts that you owe the financial institution. They may initiate legal action if your account is delinquent and other collection attempts have failed. Common types of debt involved in Discover Bank lawsuits include:
- Credit card debt
- Personal loans
- Student loan defaults
Understanding How Discover Bank Collects Debt
Discover Bank often tries to collect debt through internal efforts. However, if these attempts go unresolved for some time, it may sell the debt to a third-party collection agency or outsource the collection of the debt to a debt collection law firm. If you ignore their communications or miss payments, they may escalate to legal action.
What Should I Do If I Receive a Letter or Call from Discover Bank?
If Discover Bank contacts you regarding unpaid debt, the first step is not to panic. You should:
- Verify the debt by asking for a written notice.
- Review your records to confirm the accuracy of the amount.
- Avoid making any rash decisions or payments before confirming the debt’s legitimacy.
Handling Communications from Discover Bank
Keep a detailed record of all interactions with collectors from Discover Bank. Whether by phone, email, or mail, maintaining communication records can help protect your rights if the matter escalates to court.
How to Protect Against Discover Bank
If you’re being sued by Discover Bank, it’s crucial to take steps to protect yourself and your financial well-being. Here are the key actions to help you protect yourself:
1. Don’t Ignore the Lawsuit
Ignoring a lawsuit from Discover Bank will likely result in a default judgment against you, which could lead to wage garnishment, bank levies, or liens on your property. Always respond within the required timeframe, which is usually 20 to 30 days, depending on your state and how you were served.
2. Respond to the Summons
File an official response (known as an “Answer”) to the court. In your response, you can either admit, deny, or state you don’t have enough information to admit or deny the allegations. This step ensures that your side of the story is heard and that Discover cannot automatically win the case by default.
3. Verify the Debt
When you are first contacted by the debt collectors for Discover and before they take further steps, make sure the debt is accurate. Request proof that Discover Bank owns the debt, that the amount is correct, and that it hasn’t exceeded the statute of limitations. This is called “debt validation.” If Discover Bank cannot provide this, you may have a valid defense later on when and if you are sued by Discover.
4. Consult an Attorney
An experienced debt settlement attorney can guide you through the legal process, help you prepare your defense, and potentially negotiate a settlement on your behalf. Even if you choose not to hire an attorney, getting legal advice can help you understand your options.
5. Understand Your Legal Rights
The Fair Debt Collection Practices Act (FDCPA) protects you from abusive or deceptive debt collection tactics. If Discover Bank, through their collection agencies or their attorneys, violate these rights, you may be able to file a counterclaim or report them to regulatory bodies like the CFPB.
6. Prepare for Defense
If Discover Bank provides validation of the debt and the lawsuit proceeds, consider possible defenses. Some common defenses include:
- Statute of Limitations: The debt is too old to be collected through the court system.
- Improper Documentation: Discover Bank has not provided sufficient documentation to prove you owe the debt.
- Payment Discrepancies: You have already paid off the debt or part of it.
- Identity Theft: The debt is fraudulent and not yours.
How to Negotiate with Discover Bank
If Discover Bank is suing you for unpaid debt, negotiating a settlement or payment arrangement could be a good strategy to resolve the situation and avoid court. Assuming the debt is valid, here are the steps you can take to negotiate with Discover:
1. Take Stock of Your Financial Situation
Before contacting Discover Bank, review your finances to determine:
- How much you can realistically afford to pay as a lump-sum settlement
- Whether you can commit to a monthly payment plan
- Your overall financial health, including other debts or obligations that could create financial hardship
This will give you a clear idea of what you can offer in a negotiation.
2. Contact Discover Bank
Once you have verified the debt and assessed your financial situation, reach out to Discover Bank or the attorney representing them. You can do this by:
- Calling their debt collection department
- Sending a written letter expressing your willingness to negotiate
- If they have an attorney, speaking directly with their legal team
3. Offer a Lump-Sum Settlement
If you can afford it, offering a one-time, lump-sum payment is often the most attractive option for creditors you owe money to like Discover Bank. They may prefer receiving a partial payment upfront rather than pursuing the entire amount through costly legal proceedings.
Begin by offering what you can afford in payments, as creditors often settle for less than the full amount depending on the status of the debt and how long you have been delinquent on your payments. They may counteroffer for a higher amount, so leave some room for negotiation. If you reach an agreement, make sure they send you a written confirmation that accepting the lump sum will settle the debt in full.
4. Propose a New Repayment Plan
If a lump sum isn’t possible, you can negotiate a monthly payment plan. Be sure to propose a reasonable payment amount that you can commit to over a specific period. You should also ask them to freeze interest on the debt or reduce any additional fees during the payment period.
Again, ensure that any payment plan terms are put in writing, outlining the monthly payments, duration, and any reductions in interest or fees.
5. Consider Hiring a Debt Settlement Attorney
A debt settlement attorney can help you negotiate with Discover Bank, especially if you’re uncomfortable handling the process on your own or feel overwhelmed by debt collection practices. Debt relief attorneys can provide the following benefits:
- Communicate with Discover on your behalf
- Advise you on what settlement offers to make
- Answer legal questions and help you avoid pitfalls
- Protect your interests in any court cases and help you avoid litigation
Discover Bank Phone Number and Address
Here is Discover Bank’s contact information:
- Phone Number: 1-800-347-2683
- Address: Discover Bank, P.O. Box 30943, Salt Lake City, UT 84130
How Can a Debt Settlement Attorney Help?
A debt settlement attorney can guide you through the legal process, helping you understand your options, respond to legal documents, negotiate settlements, and even represent you in court if necessary.Tayne Law Group offers a free phone consultation with an experienced debt relief team member to go over what options may be available to you to help resolve your debt. Whether you’re struggling to keep up with your bills, have a debt in collections, or have been sued by Discover Bank, there’s a good chance our law firm can help. Contact our offices by calling (866) 890-7337 or filling out our short contact form. We never share or sell your information and all conversations are confidential.
