Sued by Golden 1 Credit Union: How to Respond

Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: If Golden 1 Credit Union has sued you, here are three steps to take to respond: respond to the lawsuit with an Answer, make an offer to settle the debt, and get your settlement agreement in writing. SoloSuit can help you with all these steps and more.

Golden 1 Credit Union, one of the largest credit unions in California, like many financial institutions, has a legal department that pursues claims and lawsuits against those who owe the organization money or have breached some contract. If you find yourself on the receiving end of such a lawsuit, it can be an incredibly stressful experience. However, understanding the process and knowing how to respond can be your best defense.

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What is Golden 1 Credit Union?

Golden 1 Credit Union is a state-chartered credit union with membership that is open to all Californians founded in 1933. As is a nonprofit cooperative, Golden 1 channels its profits back to its members. This means members benefit from greater returns on savings, reduced loan interest rates, and a wide range of complimentary services.

Below is the Golden 1 Credit Union address and other helpful contact information:

Address: P.O. Box 15966. Sacramento, CA 95852-0966
Phone: 877-465-3361
Email: mbrsvc@golden1.com
1 Credit Union login: www.golden1.com/login-to-olb

Golden 1 reviews

Golden 1 is not accredited by the Better Business Bureau, but it still has an A+ rating as of 2023. However, the Golden 1 reviews from customers only have an average 1-star rating out of 5 stars. On top of that, the BBB consumer complaints against Golden 1 are concerning.

Even worse, the Consumer Financial Protection Bureau has received hundreds of complaints against Golden 1 over the years.

Why would Golden 1 Credit Union sue?

There are several reasons why a person might be sued by Golden 1 Credit Union:

Unpaid Loans: This is the most common reason. If you have taken out a loan, be it for a car, home, or personal loan, and fail to make payments, the credit union can sue to recover the amount owed.
Overdrafts: If your checking account goes negative and remains negative for an extended period without you addressing the issue, the credit union might pursue legal action.
Credit Card Debt: Like unpaid loans, unpaid credit card balances can also lead to legal action.
Breach of Contract: Other than loan agreements, if you've entered into any other type of contract with the credit union and fail to adhere to the stipulated terms, they can pursue a lawsuit.

Steps to take if you’re sued by Golden 1 Credit Union

As alarming as it may seem, receiving a lawsuit does not mean all is lost. Many times, these situations can be resolved without going to trial. So, don’t panic. Instead, following these step to resolve your debt with Golden 1 Credit Union:

Respond to the debt lawsuit with an Answer.
Make an offer to start negotiations.
Get your settlement agreement in writing.

Below, we’ll go over each of these steps in detail. You can also watch this video to learn more about how to settle your debt with Golden 1:

1. Respond to the debt lawsuit with an Answer

A lawsuit begins when Golden 1 files a Complaint (also known as a Petition) against you in your local court. A Complaint lists the reasons for suing you, including your lack of payments toward the debt. The Complaint will indicate the amount you owe, including any interest, court costs, and other penalties.

Most people don’t know they have to file a written response to the Complaint. If you don’t respond before your state’s deadline, you will lose by default. This happens when Golden 1 requests a default judgment against you, and the court grants it. With a default judgment, Golden 1 has the right to garnish your wages, seize your property, and freeze your bank account. This is why it’s critical that you answer the lawsuit as soon as possible.

The formal response document, known as an Answer, is your defense to the lawsuit. Even if you know you owe the debt and plan to settle, you should still file an Answer.

There are multiple defenses available for debt lawsuits, but a few of the most common include insufficient validation of the debt, expired statute of limitations on the debt, or lack of business relationship with the creditor. If none of these defenses are appropriate, you can find another that is.

Make the right defense the right way with SoloSuit.

2. Make an offer to settle

Next, you’ll want to determine how much you can afford to pay off to settle the debt. Assess your finances, including your savings and upcoming paychecks. If you don’t have much money available, consider selling something you don’t need or seeking help from family and friends. You can use the following equation to help you determine a settlement amount:

Amount available to settle = (monthly income – monthly costs) + savings

Ideally, you’ll want to start with an offer of at least 60% of the total value of your debt. That’s enough for your creditor to seriously consider whether it makes more sense to accept your lump-sum payment than to pursue further collection activities against you that may have uncertain results. If you can’t afford 60%, you can always try to settle for less. You might even consider asking friends or family for a loan to help with the payment.

Once you contact your creditor to start the negotiation process, they may counter your offer with one of their own. Stay the course, and don’t accept an offer you know you can’t follow through with. If you do and cannot adhere to the terms of the agreement, the creditor will resume their legal process against you.

SoloSettle’s software takes care of the settlement negotiations.

3. Get your settlement agreement in writing

When you have a deal with your creditor, it’s essential to put it in writing. A written agreement defines the terms of the contract and ensures everyone is on the same page.

Your written agreement should clearly indicate the amount you’ll pay to your creditor. It should also stipulate when the payment is due and where you’ll send it. SoloSettle helps you manage the settlement agreement documentation.

The agreement should expressly release you from further claims concerning the obligation and require that your creditor drop the lawsuit against you. It should also instruct the creditor to report the debt as settled to the credit reporting bureaus.

Here’s a debt settlement agreement example, so you know what to look for in yours.

You can resolve your debt with Golden 1

Being sued by any financial institution, including Golden 1 Credit Union, can be intimidating. However, with the right knowledge, approach, and legal resources, you can navigate the situation effectively. Remember that ignoring the situation will not make it go away. Take action; respond to the lawsuit, and settle your debt with Golden 1. SoloSuit can help you throughout the process.

What is SoloSuit?

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You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

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