Are Credit Card Companies Able to Sue You? Yes
Are credit card companies able to sue you? Not only can they, but they will. Legally, these corporations have billions of dollars to spare, so it's not fair that you're being sued for a few thousand dollars. Using the card was like signing a contract. The answer to the question "can a credit card company sue me?" is yes, and if you fail to make a payment, they will.
One way credit card issuers make money is by making long-term payments to their customers. The interest you pay is how they earn their money. Actually, by letting you buy on credit, they earn multiple times as much as they "loaned" you. Are credit card companies able to sue you?
Surely they would. You have cut off their source of revenue if you have ceased making payments. It makes no difference if you were "lent" $500 and then paid back $3000 in interest on the same $500 over the years. You have not paid off the balance and they have the right to sue you for breach of contract in regards to the credit card.
Signing a credit card agreement is a serious matter, which is something that some people fail to understand. It's a contract that can be legally enforced. Whatever you do, if you break it, you might face legal action.
If you are in serious financial trouble and are worried about being sued, one option is to negotiate a settlement with your credit card company. They likely already sent the debt to a collection agency if you're about to be sued.
Get in touch with them via letter and propose a payment plan. The simplest way to avoid being sued is to take advantage of any offers they may have made to settle the debt for less than what you owe. Many will do this.
Depending on the agency, you may be able to pay off as much as 75% of your debt with a single, large payment. Some go much lower, allowing you to accomplish the same objective with a few payments.
Around the time you receive a second notification from a collection agency, they may extend such an offer. The initial instance consists of only presenting you with the debt, requesting payment, and stating that the amount will be assumed as yours if you do not challenge it within 30 days.
It is possible that the next communication will only serve as a reminder to pay in full. However, the majority will begin making offers after that. As time passes, some make better offers while others don't.
Remember that your debt will grow in proportion to the time you delay paying it off. For credit cards, interest can build up even if you haven't made a purchase or used the card for a while.
A lot of these businesses will eventually come out with better deals. Discover a strategy to pay off that nearly $3,000 in debt if you receive a decent offer, like paying off $1,500 of it. Why? Because if your credit card company sues you, you'll be hit with not just the original balance but also interest and court costs.
One way credit card issuers make money is by making long-term payments to their customers. The interest you pay is how they earn their money. Actually, by letting you buy on credit, they earn multiple times as much as they "loaned" you. Are credit card companies able to sue you?
Surely they would. You have cut off their source of revenue if you have ceased making payments. It makes no difference if you were "lent" $500 and then paid back $3000 in interest on the same $500 over the years. You have not paid off the balance and they have the right to sue you for breach of contract in regards to the credit card.
Signing a credit card agreement is a serious matter, which is something that some people fail to understand. It's a contract that can be legally enforced. Whatever you do, if you break it, you might face legal action.
If you are in serious financial trouble and are worried about being sued, one option is to negotiate a settlement with your credit card company. They likely already sent the debt to a collection agency if you're about to be sued.
Get in touch with them via letter and propose a payment plan. The simplest way to avoid being sued is to take advantage of any offers they may have made to settle the debt for less than what you owe. Many will do this.
Depending on the agency, you may be able to pay off as much as 75% of your debt with a single, large payment. Some go much lower, allowing you to accomplish the same objective with a few payments.
Around the time you receive a second notification from a collection agency, they may extend such an offer. The initial instance consists of only presenting you with the debt, requesting payment, and stating that the amount will be assumed as yours if you do not challenge it within 30 days.
It is possible that the next communication will only serve as a reminder to pay in full. However, the majority will begin making offers after that. As time passes, some make better offers while others don't.
Remember that your debt will grow in proportion to the time you delay paying it off. For credit cards, interest can build up even if you haven't made a purchase or used the card for a while.
A lot of these businesses will eventually come out with better deals. Discover a strategy to pay off that nearly $3,000 in debt if you receive a decent offer, like paying off $1,500 of it. Why? Because if your credit card company sues you, you'll be hit with not just the original balance but also interest and court costs.
