What happens when a past-due credit card balance doesn’t just stay on a monthly statement but instead arrives in the form of a court summons?
In Texas, that scenario is becoming more common. For many consumers, credit card lawsuits come as a shock, especially if the debt has been sold to a company they’ve never heard of.

Without understanding the process, it’s easy for a lawsuit to turn into a judgment by default. And once that happens, the creditor or debt buyer gains powerful legal tools to collect.

This article explains how credit card lawsuits in Texas work, what defenses might be available, and what a consumer can expect after being served with legal papers.

1. Understanding Credit Card Lawsuits in Texas

1.1 Why These Lawsuits Happen

A credit card lawsuit typically begins when a consumer stops making payments for an extended period. The creditor — often a bank or card issuer — may attempt to collect on its own. If unsuccessful, it may:

• Hire a collection agency to pursue the balance.
• Sell the account to a debt buyer, who then becomes the legal owner.
• File a lawsuit directly, or have the debt buyer do so.

These cases are civil matters, not criminal. The goal of the creditor is to obtain a court judgment that confirms the debt is legally owed.

1.2 Who the Parties Are

• Plaintiff– The party bringing the lawsuit. This may be the original creditor or a debt buyer.
• Defendant– The consumer being sued.
• Attorneys– Most plaintiffs hire legal counsel familiar with debt collection litigation. Consumers may or may not have their own representation, but doing so can impact the case outcome.

2. The Legal Process from Start to Finish

 

2.1 Filing the Lawsuit

In Texas, credit card lawsuits are usually filed in:

• Justice Courtfor debts up to $20,000.
• County Courtor District Court for higher amounts.

The plaintiff must file a petition outlining the amount claimed, the legal basis for the suit, and the relief sought.

2.2 Serving the Consumer

Once filed, the lawsuit must be properly served to the defendant. Service is often carried out by a constable, sheriff, or authorized process server.
If the consumer is not properly served under Texas rules, the court may not have jurisdiction to proceed.

2.3 The Answer Deadline

Texas imposes strict deadlines for responding:

• Justice Court– 14 days after service.
• Other courts– By 10:00 a.m. on the Monday after 20 days from service.

Failing to respond allows the plaintiff to request a default judgment — meaning the court grants their request without a trial.

2.4 Discovery Phase

If the case continues, both sides may exchange evidence through “discovery,” which can include:

• Interrogatories– Written questions to be answered under oath.
• Requests for Admissions– Statements the other party must admit or deny.
• Requests for Production– Demands for documents, such as account records.

Requests for Admissions can be particularly important. If not answered, the statements may be deemed admitted — effectively handing the case to the plaintiff.

2.5 Motions and Hearings

Plaintiffs often file a Motion for Summary Judgment, arguing there is no dispute of fact and they should win without a trial. This motion must be supported by admissible evidence.

2.6 Trial

If no settlement or summary judgment occurs, the case proceeds to trial.

• Bench Trial– The judge decides the case.
• Jury Trial– Less common in debt suits, but possible if requested.

The plaintiff must prove the debt exists, the defendant owes it, and the amount claimed is accurate.

2.7 Judgment and Post-Judgment Actions

If the plaintiff wins, the court issues a judgment. This formal decision allows the creditor to use lawful collection methods to recover the debt. Consumers should note that judgments also accrue interest until paid.

3. Common Defenses Consumers Use in Texas Credit Card Lawsuits

Even when a lawsuit is filed, it doesn’t automatically mean the creditor will win. Texas law gives defendants several avenues to challenge a claim. Below are some of the most frequently raised defenses, with additional detail on how each works in practice.

3.1 Lack of Standing

Standing means the plaintiff has the legal right to sue. In credit card lawsuits, especially when the plaintiff is a debt buyer, this is a common issue.

Why it matters – If a company cannot show it actually owns the account, it has no standing to enforce it in court.

What they must prove – A complete chain of assignment. This usually includes:

• A bill of sale from the original creditor to the first buyer.
• Additional bills of sale for every subsequent transfer.
• A list or database extract identifying the specific account as part of the sale.

Where creditors fail – Many debt buyers purchase large portfolios of debts in bulk and receive limited documentation. If those records don’t clearly link the defendant to the debt, a court may dismiss the case.

3.2 Statute of Limitations

Texas law imposes a four-year statute of limitations for most credit card debts.

• When the clock starts– Typically from the date of the last payment, last charge, or the date the account was charged off.
• Why it matters– If the lawsuit is filed after the deadline, the claim is legally barred.
• Practical tip– Even if the debt is too old, it’s still up to the defendant to raise this defense. If not raised, the court can still grant judgment to the plaintiff.
• Caution– Making a payment or written promise to pay can sometimes restart the limitations period.

3.3 Failure to Prove the Debt

The plaintiff must link the defendant to the specific account and prove the balance claimed.

Common gaps in proof:

• Missing account statements.
• Statements that only show a partial history, making it unclear how the balance was calculated.
• No signed agreement or proof the defendant agreed to the card terms.

Why this defense works – Texas courts require competent, admissible evidence. Unsupported assertions in a petition aren’t enough.

3.4 Incorrect Amounts Claimed

Even if the account is valid, the amount claimed must be accurate.

Areas to challenge:

• Interest charged beyond what the card agreement allows.
• Late fees or penalties added after charge-off.
• Duplicate charges or accounting errors.

Burden on plaintiff – They must show how every dollar was calculated. Overstating the balance can undermine credibility and lead to a reduced award or dismissal.

3.5 Improper Service

Texas has strict rules about serving a lawsuit.

• Proper service methods– Personal delivery by an authorized server, or alternative service only with court approval.
• Why it matters– Without valid service, the court may lack jurisdiction.
• Warning for defendants– Avoiding service won’t necessarily make the case go away; the plaintiff can request alternate service, such as posting at the residence. But if service truly failed to meet legal requirements, it can be grounds for dismissal.

4. Evidence Creditors Must Present

Winning a credit card lawsuit in Texas requires more than just stating “the consumer owes money.” The plaintiff has to back the claim with evidence that meets Texas Rules of Evidence.

Here’s what courts typically expect:

4.1 Original or Copy of the Signed Agreement

• Purpose– Shows the defendant agreed to the account terms.
• Challenges– Many credit card accounts are opened online, so there may be no traditional signature. In these cases, plaintiffs rely on application records or terms of service.
• Defense opportunity– If the plaintiff cannot produce any record showing the defendant agreed to the terms, the court may question the validity of the claim.

4.2 Account Statements

• Purpose– Demonstrates charges, payments, and interest over time.
• Requirements– Usually, courts want a full account history or at least enough statements to explain how the balance was reached.
• Defense opportunity– Missing months, unexplained fees, or inconsistent balances can be challenged.

4.3 Chain of Assignment (For Debt Buyers)

• Purpose– Proves legal ownership of the account from the original creditor to the current plaintiff.
• Requirements– Each step in the sale must be documented. Generic “portfolio sales” without identifying account numbers may not satisfy the court.
• Defense opportunity– Any missing link in the chain can raise doubt about the plaintiff’s right to sue.

4.4 Testimony from a Records Custodian

• Purpose– Authenticates documents and explains how records were kept.
• Who this is– Usually an employee of the creditor or debt buyer who can testify the records are accurate business records.
• Defense opportunity– If the witness lacks personal knowledge of the original creditor’s records, their testimony may be limited or excluded.

4.5 Why Evidence Matters So Much

Without proper documentation and admissible testimony, a creditor may fail to meet its burden of proof. In Texas, as in other states, the plaintiff carries the responsibility of convincing the court — not the other way around. A lack of evidence can mean dismissal, even if the debt itself is legitimate.

5. What to Expect in Court

5.1 Justice Court

• Informal compared to higher courts.
• Often faster, with limited discovery.

5.2 County or District Court

• More formal, with stricter evidence rules.
• Longer timelines and more procedural requirements.

5.3 Courtroom Experience

Consumers should expect:

• The judge to address procedural issues first.
• Both sides to present evidence and arguments.
• A decision either immediately or after review.

6. Settlement Options Before Judgment

 

• Lump-Sum Payment– Paying a reduced amount in exchange for dismissal.
• Payment Plan– Agreeing to monthly payments over time.
• Mutual Dismissal– Both parties agree to end the case, often “with prejudice,” preventing re-filing.

Settlements should be documented in writing and filed with the court.

7. How Credit Card Lawsuits Relate to Other Debt Types

Credit card lawsuits share similarities with other unsecured debt cases, such as medical bill collections. In both, the plaintiff must prove the debt exists and is owed by the defendant. Consumers dealing with multiple debts may face several lawsuits at once, compounding legal and financial pressure.

8. After the Case Ends

8.1 Dismissal

A dismissal generally ends the matter. With prejudice means it cannot be refiled; without prejudice means it could be brought again.

8.2 Judgment Paid in Full

Once satisfied, the judgment should be marked as paid in court records.

8.3 Preventing Future Lawsuits

Steps such as negotiating payment plans, consolidating debt, or seeking formal debt relief services may help reduce the risk of being sued again.

Facing a Credit Card Lawsuit in Texas? Acting Quickly Matters

 

When served with a credit card lawsuit, time is the one resource consumers cannot afford to waste. Waiting too long can mean losing by default — even if there are strong defenses.

The Law Office of Joel Gonzalez is a debt relief law firm in Texas with experience defending credit card lawsuits, addressing medical bill collections, and guiding clients through a legal process that can otherwise be confusing and stressful. As a solo attorney, Joel Gonzalez offers personal attention to every case, ensuring that clients understand their options and the strategies available.

For anyone seeking credit card debt relief in Corpus Christi or elsewhere in Texas, contacting the Law Office of Joel Gonzalez can be the first step toward regaining control. Call today at (361) 654-DEBT to schedule a consultation and learn how focused legal action can protect your rights and work toward resolving your debt.