What to Do If Your Credit Card Company Sues You
More and more individuals are falling into the trap of debt, and it's likely that you're one of them. There were circumstances beyond your control that prevented you from paying your bills, but you are a decent person at heart. Now is the time to find out if a credit card company can sue you, for whatever reason you may be at this stage. There is more to the story than just that, though, therefore the answer is yes. Given that, there are certain things you absolutely need to be aware of.
1. You are facing an unfair playing field. Credit card firms are experts at exploiting you for maximum profit. In order to persuade you to use their card frequently, they will lure you in with a tempting offer. After some time has passed, they have learned to anticipate when you would be late, miss a payment, or pay just the minimum. The credit card company will be laughing all the way to the bank when that happens since things can easily get out of hand. Irrespective of your efforts, they will continue to profit off you.
2. Get in touch with the creditor. So here you are, ensnared, with no idea how to free yourself, and fretting over potential legal action. The thing you should know is that the credit card company will only resort to suing you after all other options have been exhausted. Ignoring their requests for communication is the leading cause of legal action. Calling each of your creditors and explaining your predicament will not be a simple task. For those who are financially strapped, several creditors provide hardship programs. Since not everyone is forthcoming with this kind of information, you might need to be explicit when asking. You might be able to obtain a fantastic bargain for six to twelve months if you're eligible; that should be more than enough to get you back on your feet. Another perk of contacting the credit card company is that it will prove that you made an effort to make arrangements in the event that you wind up going to court.
3. Collecting is different from suing. Although being the target of a lawsuit is never fun, the reality is often more bearable than people imagine. It simply indicates that someone is attempting to collect money from you by means of the legal system. You will get an opportunity to present your perspective and the reasons behind your financial difficulties, which is fantastic news. Your debt may be reduced or restructured in a more favorable way by the judge. Still, it's possible for the judge to side with the credit card company—and that's not necessarily a terrible thing. The legislation acknowledges that there is a minimum amount of money that must be maintained for basic needs. So, even if they win, the credit card corporation might not walk away with a tidy sum.
So, are credit card companies able to sue you? Indeed, but you shouldn't lose hope because things can always work out better than you think.
