You've now encountered one of the many weaknesses of debt consolidation programs: not all creditors are willing to deal with the program provider. Some creditors, particularly American Express and Capital One, either won't deal with them at all or will take a hard negotiating stance.
You should consult an attorney about the proper way to respond to the lawsuit. You should also consult a bankruptcy attorney. You can read an article at the link below that explains why bankruptcy is usually superior and cheaper than debt consolidation.
First, the firm is a debt relief agency according to the U.S. Bankruptcy Code. We help people file for bankruptcy. We also do other stuff and we do it well, but Congress wants me to post this notice. Second, nothing on this site is legal advice. You are not my client unless you enter into a written agreement signed by you and me.
As previously mentioned, creditors are not required to works with debt consolidations. If you ignore the lawsuit, a default may be entered against you, which would allow the creditor to garnish wages and bank accounts. You should contact an attorney to discuss your options.
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