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How to Resolve a Debt with WebBank

George Simons | January 28, 2025

George Simons
Co-Founder of SoloSuit
George Simons, JD/MBA

George Simons is the co-founder and CEO of SoloSuit. He has helped Americans protect over $1 billion from predatory debt lawsuits. George graduated from BYU Law school in 2020 with a JD-MBA. In his spare time, George likes to cook, because he likes to eat.

Edited by Hannah Locklear

Hannah Locklear
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: WebBank is a digital bank based in Utah that finances companies in various industries. If WebBank is suing you, draft and file a response with the court before your state's deadline. Then, reach out to negotiate the debt on your own terms. Solo can help.

If WebBank is suing you, you need to know exactly how to respond to avoid making matters worse. Although it might feel like you have no hope, there are many avenues that you can take to improve your situation. It can be tempting to avoid debt collectors, but doing so leaves you vulnerable if they decide to take action, such as suing you.

WebBank is a consumer debt agency that issues a range of consumer and small business credit products through partnerships with retailers, finance companies, manufacturers, and FinTech companies.

If WebBank is contacting you for an unpaid debt, Solo can help you respond appropriately.

Settle debt with WebBank

You can negotiate debt settlement at any stage of the collections process. SoloSettle makes it easy.

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What is WebBank, and how does it work?

Located in Salt Lake City, UT, WebBank is a “national issuer of consumer and small business credit products,” which is just a fancy way of saying it is a bank that funds consumer and commercial loan products, revolving lines of credit, credit cards, private-label card issuance, auto-refinancing and more. WebBank has been known to finance companies like Fingerhut, Dell Computer, Yamaha, Avant, Klarna, Lending Club, Onemain Financial, and PayPal, to name a few.

If you've entered an agreement with any of the companies or services listed above, WebBank likely financed it. So, when WebBank contacts you for a debt you owe, you might not even recognize the name “WebBank.”

They might even sell your debt account to a debt collection agency or hire one to collect on their behalf, which makes things even more confusing.

You can reach WebBank at the following address:

WebBank
215 S. State St.
Suite 1000
Salt Lake City, UT 84111

If WebBank is suing you, the first step to winning in court is understanding your rights and filing an Answer to the lawsuit. An Answer is crucial to protecting your rights in a lawsuit, but it’s only the first step.

After filing the Answer, remember it is your responsibility to keep track of your court case, show up for any hearings, and respond to requests for information until the case is dropped or settled.

Who does WebBank collect for?

As mentioned above, WebBank partners with a wide range of companies and may handle collection activities for any of them. In addition to the companies listed above, you may also be involved with WebBank through:

  • Credit card issuers
  • Prosper
  • Cross River Bank
  • Crown Asset Management
  • Klarna

The above list is not comprehensive, as WebBank works with an extensive network of lenders.

The FDCPA protects you

The Fair Debt Collection Practices Act (FDCPA) protects consumers from unethical debt collection practices. For example, the FDCPA prohibits debt collectors from:

  • Calling consumers before 8 a.m. or after 9 p.m.
  • Using abusive, threatening, or vulgar language to intimidate consumers into paying off a debt.
  • Threatening to arrest or take legal action that they cannot or do not plan to take.
  • Pretending to be the police or a judge.
  • Discussing a consumer's debt with their friends, family, or coworkers.
  • Calling consumers at their workplace when the employer prohibits such communications.

Check out these WebBank reviews online to learn more about how to negotiate

Reading online reviews from other consumers who’ve used WebBank can help you determine the best approach for resolving your debt. WebBank has been in business since 1997 and maintains an A+ rating from the Better Business Bureau (BBB).

Online reviews are often mixed. However, there are consumers like this one on WalletHub, who’ve had a positive experience with WebBank.

“This is great as a beginning step, into restoring your credit score! I would highly recommend! However, the interest rate is extremely high, so I would suggest making sure to pay your balance off in full each month!”

Respond to a debt lawsuit against WebBank.

If WebBank is coming after you for a debt, don't ignore it, especially if you're being sued. This will only result in a default judgment, which allows WebBank to garnish your wages, seize your property, or even take money directly from your bank account.

If WebBank has sued you, respond immediately by filing an answer with the court and sending a copy of it to the attorneys representing WebBank. Check out this video to learn more about how to respond to a debt collection lawsuit:

How to settle a debt with WebBank

To settle a debt with WebBank using Solo, follow these steps:

  1. Review Your Debt: Start by understanding the specifics of your debt with WebBank, including the total amount owed, interest rates, and any associated fees.
  2. Contact WebBank: Reach out to WebBank’s customer service through mail or email to discuss your debt. Be prepared to explain your financial situation and why you want to settle. They may be willing to negotiate on the outstanding amount.
  3. Negotiate the Settlement Amount: Lenders often accept a reduced amount as a full settlement. Based on your finances and any previous correspondence, propose a reasonable offer.
  4. Get Everything in Writing: Once you reach an agreement, request written confirmation from WebBank that the settled amount will clear your debt, the Settlement Agreement is crucial for your records to ensure that you can prove you reached a settlement and stop any future collection attempts.
  5. Make the payment on time: Fulfill your end of the agreement and make your payment on time. You can use SoloSettle to facilitate the payment and protect your financial information.

To learn more about these steps, and for more tips on negotiating with WebBank, check out the following interview with a debt lawyer:

What you need to know about the hearing

When you go to your debt collections hearing, you will be able to plead your case. Whether you owe the debt or do not owe the debt, you should still try to find an affirmative defense. For example, you can always ask WebBank to prove that you owe the debt. The case will be dismissed if they cannot prove that you owe the debt or that they own the debt and have the right to pursue you for it.

You can also attempt to settle before going to your hearing as well. This can allow you to have other options, such as setting up a payment plan or settling for a lower amount than you originally owed.

In some cases, you may not feel that you owe the debt. This might be a situation where you can invoke other affirmative defenses. In these cases, you may have purchased something defective or that never arrived, or the contract was originally illegal. You may also have signed it without knowing the terms. In any case, these are defenses against a Webbank suit.

Whatever your situation, making your decision is one that can only be done based on your situation. But what you must remember is to always respond to a debt collection lawsuit.

Settle with SoloSettle

Make an Offer

How does the WebBank arbitration clause work?

Because WebBank requires arbitration, you should not feel powerless. WebBank requires this to limit their damages, but you can use it against them to increase the chances of WebBank dropping a lawsuit. Arbitration typically only helps WebBank when it comes to class action lawsuits or larger cases over $10,000.

When it comes to smaller cases under $10,000, arbitration is often not worth the cost of the debt. For example, the filing costs for arbitration can range from a few hundred dollars to $2,500 or more. If your initial contract with WebBank contains a mandatory arbitration clause, WebBank may have no choice but to pursue arbitration before filing a lawsuit. If you exercise your right to arbitration, WebBank may decide to drop the case altogether. Regardless, there are a few things you need to do if WebBank has sued you.

WebBank was involved in a Supreme Court class action lawsuit

A Motion to Compel Arbitration in Bethune v. Lending Club Corporation et al. spun a carefully-watched class action suit. In this case, the plaintiff filed a complaint in April 2016 disputing a loan received through Lending Club's online platform and provided by WebBank.

To understand the heart of the case, it is essential to understand that most states have “usury laws” designed to protect consumers from predatory interest rates. The plaintiff, Mr. Bethune, filed the class action lawsuit claiming that WebBank took advantage of consumers by using the usury laws of its chartered state of Utah instead of complying with the laws of the state where each consumer resides. Mr. Bethune is from New York, where interest rates are capped at 16%. Utah's interest rates, with a contract, are capped at 50%.

Mr. Bethune claimed that by lending to borrowers at interest rates higher than the usury caps in the borrowers' home states, the defendants broke state usury laws and state consumer protection laws.

The court quickly dismissed the plaintiff's "perfunctory" argument that the arbitration agreement was inherently unconscionable. The plaintiff had 30 days to opt out of the arbitration clause and failed to do so. Therefore, the district court where the case was filed upheld the defendant's right to force the issue into arbitration. The stated arbitration clause required that the issue be arbitrated individually, protecting the lender from a class action suit. Lending Tree eventually agreed to pay a $2 million penalty to resolve the allegations. Both Lending Tree and WebBank made no admission of responsibility.

How does WebBank Fingerhut work?

The Fingerhut FreshStart installment loan and the Fingerhut Advantage Credit Account are offered through WebBank. These items can be used to finance orders placed through Fingerhut's catalog or website.

The WebBank Fingerhut Credit Account is a revolving line of credit, much like a credit card. It is promoted as a solution for internet buyers to establish credit while making periodic payments on their goods.

Is Fingerhut suing me?

If you owe Fingerhut money, they have the right to sue you and possibly obtain a judgment against you. The first step to winning in court is to file your Answer. You can use SoloSuit to respond to the lawsuit in just 15 minutes, block a default judgment, and give yourself time to resolve the debt on your own terms.

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