A family member was served a summons for cc debt w/chase bank. The lawyer friend she spoke with told her it will cost her $500 to respond or go to jail. Does this sound right?

No, if a attorney told her that she could go to jail for a civil court summons on a credit card debt,

1. don't use them
2. report them to the state bar association

If they just don't show up, they merely lose the civil case and there is a judgement for the amount of money put against them.

They can respond by merely replying to the court and debtor that they plan on defending thierself.
*** but of course they will have to prove they don't owe the money or there is some legal reason they can't have a judgement