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Credit Card Lawsuit: Negotiating Settlement The Right Way

Credit Card Lawsuit: Negotiating Settlement The Right Way

In most cases, a large majority of civil lawsuits are caused by negotiation breakdown. The fact is, one of the best ways to avoid a credit card lawsuit altogether is to sit down and resolve the dispute with the creditor. If things go well, you might get exactly what you want without litigation. You can always take the dispute to the next level if things are not favorable. Either way, there’s no harm in open communication with your creditor to reach a settlement.

It takes an enormous amount of patience and the right strategy to negotiate a deal with a creditor. For the best chances of a favorable deal, consider the following tips:

One: always negotiate with someone who has the authority to settle these types of issues and not just request a settlement deal with random customer service agent as your request will most likely be ignored.

Two: Don’t beat around the bush, be straightforward and let your creditor know exactly what you want. However, you need to justify your request so don’t be greedy. Be realistic and show willingness to settle the debt before it turns into a full-blown credit card lawsuit.

Three: Do not lose your cool. You will only end up blowing the deal when you start getting upset or start yelling at people. If you feel your temper rising, try again later so you won’t lose credibility.

Four: Always leave a paper trail. If you finalized the negotiation, make sure it is done in writing. You cannot trust your creditor to do what they promised unless there’s a list of the terms and conditions with both parties signing it. If you do not have written agreement, you can’t prove that you have an agreement at all.

Five: Be realistic, you can’t expect your creditor to agree to everything you demand. It might be costly to see through the credit card lawsuit but some will pursue the case if the negotiation breaks down.

Six: Don’t make threats you can’t keep or don’t make threats at all. If you no intention of following through with a lawsuit, don’t make empty threats. The fact is, threatening a lawsuit is never an effective negotiation tactic anyway. If you do come to a point where you see that suing is better than settling, just do it and resume the negotiation with their attorney.

Negotiating a great settlement does not happen overnight. You need to be patient, persistent, understanding and be willing to compromise otherwise, you will never reach a resolution and you might end up neck deep in legal cost as the credit card lawsuit reaches the court.

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