Have you been served a lawsuit by Members Choice Credit Union? If there is one message you take away from this article, it is this: never ignore a debt collection lawsuit. You have legal options available to you to resolve this lawsuit and put it in the past. Below, our Texas debt collection defense attorneys discuss what to know and do if sued by Members Choice Credit Union in Texas.
What Is Members Choice Credit Union?
Members Choice Credit Union (MCCU) is a credit union or financial cooperative based in Houston, Texas. As a credit union, it operates differently from a traditional bank. Unlike a bank, which is for-profit and owned by its shareholders, a credit union is member-owned and serves as a not-for-profit aiming to benefit its members.
Founded in 1941, Members Choice Credit Union provides a range of credit and lending services to individuals and businesses. According to its website, to be a member of the credit union, you must meet one of the following requirements:
- Be affiliated with Harris County, Fort Bend County, Montgomery County, Brazoria County, or the 77546 ZIP code
- Be a current or retired employee of a MCCU Select Employer Group
- Live with or be related to another member of MCCU
- Join a MCCU member association
Why Is Members Choice Credit Union Suing Me?
Members Choice Credit Union is likely suing you for alleged unpaid debt and breach of contract. Because the credit union offers a variety of credit and loan options, the debt in question may be related to one of the following:
- Personal loan
- Auto loan
- Boat and RV loan
- Mortgage
- Land loan
- Credit card
Typically, Members Choice Credit Union will first attempt to collect the debt through other methods, such as phone calls or letters. However, if these collection efforts are unsuccessful, the credit union may resort to filing a lawsuit in an attempt to get a court judgment.
Members Choice Credit Union usually hires law firms specializing in debt collection to handle these lawsuits. For example, we often see lawsuits brought on behalf of the credit union by the following law firms:
- Hughes Watters Askanase LLP
- Javitch Block, LLC
This infographic provides a step-by-step guide on how to respond if you are sued by Members Choice Credit Union in Texas, emphasizing the importance of timely legal action and exploring various resolution options.
Why You Should Not Ignore a Members Choice Credit Union Lawsuit
Ignoring a lawsuit is a poor strategy because it takes away any opportunity to defend yourself, negotiate a settlement, or explore alternative debt relief options. Instead, failing to respond to the lawsuit can lead to a default judgment against you.
A default judgment means the court rules in favor of Members Choice Credit Union because you failed to respond to the lawsuit or attend required court hearings. Essentially, you automatically lose the case.
This judgment can result in the court ordering you to pay the claimed amount plus interest on the debt, as well as Members Choice Credit Union’s court and legal fees. Once the credit union has a default judgment against you, it can take further legal action to collect. For example, it can seek bank garnishment, which is the freezing and seizing of funds from your bank accounts, place liens against your property, or seize property to satisfy the debt.
Responding to the lawsuit is the only way to avoid a default judgment. Our Texas debt collection defense lawyers explain this process below.
How to Respond to a Texas Debt Collection Lawsuit
When you have been served with a lawsuit, you should first examine the lawsuit documents. These documents, called a Complaint and Summons, will contain critical information. You can generally expect the Complaint to include the following information:
- Claims against you, such as a defaulted loan or credit card
- The amount you allegedly owe, including the defaulted balance, interest, and any other applicable fees
- Why Members Choice Credit Union has the right to sue
- Relief requested from the court, such as a judgment for the claimed amount, legal fees, and court costs
The Summons, on the other hand, acts as the formal notice of the lawsuit. It should give you information about the following:
- Case number
- The court handling your case
- Deadline to respond to the lawsuit
You have limited time to respond to a debt collection lawsuit by filing an Answer with the court. In Texas, you generally have 14 to 20 days, depending on the court handling your case. If you miss the appropriate deadline, you risk a default judgment.
Before taking next steps, we recommend contacting an experienced Texas debt defense lawyer. An attorney can review the claims against you and provide valuable guidance about your legal rights and options for dealing with the lawsuit. More so, when you work with an attorney, they will draft and file a strong Answer based on your situation and ensure it complies with the court’s legal procedures.
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If you move forward without an attorney, you must file an Answer with the court overseeing the case. In your Answer, you should admit or deny each claim made against you by Members Choice Credit Union. You can also list any defenses you have to the lawsuit. For example, common defenses may include that the debt is time-barred, paid, discharged in bankruptcy, or a case of mistaken identity.
After filing your Answer with the court, you must serve a copy to MCCU’s attorney. You can use our guide about responding to a debt collection lawsuit as a resource.
What Happens After I File an Answer With the Court?
Keep in mind that filing an Answer does not end the lawsuit. It protects you from a default judgment and initiates your participation in the case.
After filing your Answer, you can explore your legal options for resolving the lawsuit. Generally, your options may include:
- Negotiating a settlement with Members Choice Credit Union
- Fighting the lawsuit in court
- Seeking alternative debt relief, like bankruptcy
We recommend working with an attorney who can help you evaluate your options and navigate the best strategy for your situation.
Schedule a Free Consultation With Our Texas Debt Collection Defense Attorneys
At Warren & Migliaccio, we represent and defend Texans facing credit card and debt collection lawsuits. With extensive experience and success across the state, we are committed to achieving the best possible outcomes for our clients.
When you choose us, we will handle the legal process on your behalf. We will investigate the claims against you and challenge any weaknesses we find. If case dismissal is not possible, our team will work toward the best solution for your unique financial situation. Whether through settlement negotiations, fighting the case in court, or seeking bankruptcy protection, you can count on us to advocate for your best interests and help you put this lawsuit behind you.
If you are being sued by Members Choice Credit Union in Texas for debt collection, do not hesitate to schedule a free consultation with us at no obligation. We are here to answer your legal questions, review the claims against you, and discuss your legal options. Call us at (888) 584-9614 or contact us online today.
