A while ago, I settled an old Discover credit card debt and paid the full amount they offered. Now, months later, I get a lawsuit notice saying I still owe them money. I thought once you settle and pay, that’s it? I’m trying to clean up my finances from my early 20s, and this is stressing me out. I have proof of payment from my bank and probably some emails about the settlement. What should I do?
Don’t ignore it. If you do, they’ll win by default, and that’s the worst outcome.
Dakota said:
Don’t ignore it. If you do, they’ll win by default, and that’s the worst outcome.
Yeah, I plan to call Discover and also respond to the summons. I can’t afford for this to get worse.
I’ve handled thousands of cases against Discover. First thing—what state are you in?
Carmine said:
I’ve handled thousands of cases against Discover. First thing—what state are you in?
California
Carmine said:
I’ve handled thousands of cases against Discover. First thing—what state are you in?
California
Alright, were you officially served court papers? If so, you need to file a response ASAP or they’ll win automatically.
You should also talk to a local attorney about California’s Corporations Code section 2203. Some lawyers have had success arguing that Discover isn’t registered properly to sue in certain states. There was even a Supreme Court case last year that touched on this issue. A California lawyer can tell you if it applies here.
Also, check all your settlement paperwork and payment receipts. If you have proof you paid what was agreed on, that could be your defense.
@Carmine
Yeah, I got served. I’ll gather my paperwork and look for an attorney. This whole thing is overwhelming. Have you seen cases like this before?
Keller said:
@Carmine
Yeah, I got served. I’ll gather my paperwork and look for an attorney. This whole thing is overwhelming. Have you seen cases like this before?
Not really. Discover rarely settles before a lawsuit, and when they do, it’s usually for people who actually broke the agreement. If you don’t have proof of payment, it’ll be hard to fight.
Keller said:
@Carmine
Yeah, I got served. I’ll gather my paperwork and look for an attorney. This whole thing is overwhelming. Have you seen cases like this before?
You might want to look into filing a counterclaim under the Fair Debt Collection Practices Act (FDCPA).
Find all the paperwork, especially anything showing Discover agreed you paid. If you have a final payment receipt, that’s key. If there was any unpaid balance, it should be clear in their letter. If they made a mistake, they can sue, but they won’t win if you show proof. Ask them for a full breakdown of what they claim you owe.
I got a lawyer, and it disappeared.
Greer said:
I got a lawyer, and it disappeared.
You went through something similar?
Greer said:
I got a lawyer, and it disappeared.
You went through something similar?
Yeah, I owed $15,000. It just vanished after I got legal help. Pretty sure Discover sells these debts, which makes it hard for them to prove what you actually owe. My credit took a hit, but it was worth it.
Take your proof to court. Show them everything. Double-check that this lawsuit is about the same debt you settled.
Even if you have solid proof, you could still lose just because you’re not a lawyer. Courts tend to favor attorneys over regular people, and these debt collection cases are set up so most people don’t even fight back. You might need a lawyer to handle it for you.
You said you got a letter from Discover, but later you mention being served. Were you actually served court papers?
Nuri said:
You said you got a letter from Discover, but later you mention being served. Were you actually served court papers?
Yeah, sorry for the mix-up. I got an official summons saying I owe them money. The only letter I ever got from Discover was when I accepted the settlement two years ago.