Credit Card Company Sue You For Nonpayment

Will a credit card company sue you for nonpayment? Stop paying your credit cards and you’ll find out the answer is yes. In fact, the question should be not “will a credit card company sue you for nonpayment?” but when will they start legal proceedings?

Credit Card Company

If you owe a lot of money to a credit card company, you will be sued for it if you don’t make other arrangements to pay it. Even if you owe a relatively small amount like several hundred dollars or a thousand, they will most likely sue you for it.

The good news is that they don’t sue immediately. Will a credit card company sue you for nonpayment if you miss a few payments? Probably not. They’ll first try to get payment from you through their own company.

They have people employed who will contact you and try to get you to pay. They will try to help you make arrangements. Most credit card companies have programs in place to help people when they start getting behind.

They have programs that you can go on for maybe six months where they’ll waive late fees or over the limit charges as long as you make a set payment on time each month. Some programs are shorter, some are longer. But they do try to help you find a way to get back on track.

Be careful with these arrangements because you can end up in deeper debt that before, even though you’re paying a little less for a short period. And if you’re late while on the program, it’s really doing you no good at all.

If you try a program and it doesn’t work, will a credit card company sue you for nonpayment? No, first they’ll outsource the debt to a collection agency. The agency will contact you first in writing asking that you verify the debt. If you do so, or you just ignore the letter, they’ll start contacting you for payment.

They may offer you a discounted rate so that you can more easily pay it off. It will still be a mark on your credit report, but it’s already been damaged with the debt. Take advantage of any of these offers because they’re the easiest way to get out of debt.

Some of the best offers you’ll receive are in the first few months of the year because they know that many people will be receiving income tax refunds. You might get offers that will allow you to pay as little as 40% of a debt to resolve it if you pay that amount at once. Do everything you can to take advantage of these offers.

If you don’t and the credit card company does sue you, there won’t be any offers like that .You’ll have to pay the full amount plus court costs and legal fees. And interest will be added as well.

To have a credit card company sue you for nonpayment means that you’ll have to answer to a judge next time you start missing payments, so avoid this if you can.

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