Is It Possible For A Credit Card Company To Sue You?
People are taking on more credit card debt than in the past due to the current state of the economy. A larger portion of those same individuals, regrettably, lack the financial means to settle their outstanding accounts. So, can a credit card company really sue you? Frankly, the answer is yes. They have the legal right to sue you, even though it doesn't make sense for them to do so with billions of dollars in assets. You engaged into a legally enforceable contract when you applied for your card, even if you didn't know it at the time. So, not only are credit card companies able to, but also likely will, sue you if you fail to pay for an extended period of time.
The card firms reap the greatest financial benefits from customers they can extend credit to indefinitely. The longer you pay, the more interest they collect, which is how banks make money. Late fines and other costs also contribute.
Instead of asking if a credit card corporation can sue you, one could ask why they wouldn't. After all, they lose out on some money when you stop paying. They get into financial problems themselves if they allow too many people to get away with it. Any way you look at it, the contract you signed specifies how money is to be paid, and a major reason people get sued is because they broke the deal.
It is prudent, then, to take all necessary measures to forestall legal action. Contact your credit card company immediately if you are aware that you will be unable to make your payments as agreed upon or if you have fallen far behind. Tell them the truth and explain your predicament. How accommodating they are and what they can do to assist you might surprise you.
Although contacting the card issuer directly is preferable, they may have sent your account to a collection agency if they are about to sue you. Send a formal proposal outlining how you intend to settle your debt if you discover that you are now dealing with an agency.
On occasion, they may offer you a substantially reduced settlement sum. Here is where they will lower your total amount owed (often by as much as 50%), but there's a catch: you'll have a limited time to pay this amount, and the complete amount is normally due in one, two, or three big payments. But if you can manage it, it's a fine method to lessen the overall amount you have to pay.
Last but not least, a credit card company can sue you, and you'll have to pay court expenses even if they win (which they almost always do, barring very exceptional circumstances). Also, keep in mind that a judgment against you isn't the be-all and end-all, but it will stay on your record for a long time.
