People are acquiring more credit card debt than they have ever before in today’s shaky economy. Unfortunately, more of those same folks are unable to pay off their debts. This raises the question of whether a credit card company can sue you. To put it, they can. While it may not seem fair that they may sue you for a few thousand dollars when they own billions, the law allows them to do so. You may not realize it, but you signed a binding contract when you applied for your card. That means that if you don’t pay your credit card bill for a long time, credit card issuers can and will sue you.
The card firms make the greatest money from customers who will continue to pay for years. Interest (along with late fines and other costs) is where they make their money, and the longer you pay the more interest they collect.
The question isn’t whether a credit card corporation can sue you, but why wouldn’t they? After all, they lose a percentage of their income if you stop paying. If they let too many people get away with it, they will find themselves in financial difficulties. Regardless, the contract you signed specifies how payments will be paid, and breaching a contract is one of the most prevalent reasons for legal action.
As a result, it makes sense to do all possible to avoid getting sued in the first place. If you know you won’t be able to make your payments on time or have already fallen behind, contact your credit card provider immediately. Tell them the truth about your circumstance. You might be amazed at how accommodating they are and the accommodations they can make to assist you.
It’s always easier to deal with the card company, but if you’re about to be sued, there’s a strong likelihood they’ve turned your account over to a collection agency. If you find yourself dealing with a collection agency, write them a proposal for paying what you owe.
They may offer you a lesser payoff amount in some cases. This is when they lower your debt (often by as much as 50%), but there’s a catch: you’ll only have a limited period of time to pay it off, and you’ll usually have to make one, two, or three hefty payments. But, if you can do it in any way, it’s a fantastic method to lower the amount you pay out of pocket.
Finally, a credit card company can sue you, and if the court rules in favor of the card company (which it will almost do in all but the most exceptional instances), you will be responsible for court expenses. That so, you should be aware that a verdict against you isn’t the end of the world, even if it will remain a major mark on your record for many years.