If you’ve fallen behind on your credit card payments, you might be wondering if you can be sued for credit card debt. If you’re concerned, I don’t want to add to your worries, but you should be aware that you can be sued for credit card debt. You may be able to get away with being late on your payments for a long period, even years, but you won’t be able to do so.
Credit card companies are desperate for their money and will go to any length to get it. If you don’t pay your credit card bills on time or only pay the least amount due, they will pile up and your debt will grow. You might even believe that you’ve gotten away with paying the loan and that the bank has forgotten about it. They haven’t, yet!
Credit card companies will start charging you extra fees if you are one payment late. They may even call you to remind you that you owe them money and to work out a payment plan with you.
When you start making late payments on your credit card, some businesses will even raise your interest rate. This may be dependent on your credit card agreement, but don’t be surprised if your interest rates skyrocket once the introductory offer period expires.
If your credit card company raises your interest rate, charges you late fees, and calls you to offer payment arrangements but still can’t get the money from you, the debt will be turned over to a collection agency. A collection agency’s main purpose is to collect money from you. The agency will most likely send you a letter that you must respond to within 30 days.
You will be given two options by the collecting agency. You have 30 days to pay or contest the debt. If you do nothing, they will presume you are responsible for the debt and move to the next step.
They will continue to send you debt collection letters and will also start calling you. If one collection agency fails to collect money from you, the case may be transferred to another, and you may have to deal with some of them.
If the credit card company does not receive payment after a specific period of time, they can choose to wipe off the debt or sue you for the amount owed. If the debt is small, they will write it off, but if the debt is large, there is a good chance they will sue you.
Credit card firms aren’t only after enormous sums of money; people have been sued for as little as $1,000. Then there are court charges and legal fees to factor in, bringing your total debt to even higher levels.
When you sign a credit card agreement, you are agreeing to obey the conditions of the contract. You broke that agreement, which is a legal instrument when you didn’t pay by the due date, and the corporation can now sue you.
Is it possible to be sued for credit card debt? Yes, and many people do, so if you have credit card debt, you should contact your credit card provider and create some form of payment arrangement.