how can a credit card company sue you?

Question

whats the laws on this

Answer 1

You are responsible to paying your credit card. Every penny must be paid back including the interests that has added up. A credit card is not free money. You're pretty much burrowing their money on their terms. You don't pay the amount due on the date shown and they have every right to sue you, take you to court or worse, go to jail.

Answer 2

In reality most collectors try to avoid going to court to collect a bill because it requires getting a lawyer in your home state and sharing the fee! Unless you are seriously behind in your debt payments (as in more than six months) and have made no effort to pay, it is not likely the collection agency will file to receive a judgment on you. As for judgments, when you accepted the credit card you gave the creditor the right to sue you in court to collect the money it is due. As the debtor you first receive a notice from an attorney that if you don't pay or make arrangements with them (not the collector) they will take legal action. This gives you a chance to make payment arrangements and stop the process, but if this fails next you receive a notice or summons from the court regarding the debt owed and that the creditor is suing to collect. The summons advises you of the court date and you have the option to defend the suit in front of a judge. After listening to both you and your creditor the court determines how the debt must be repaid and you must abide by the ruling.

Many people fail to show up at court and this is a big mistake. Come prepared to show your sincerity and come with a plan to repay the debt. If you decide not to attend the proceeding on the scheduled court date the judge would issue a judgment in favor of the creditor for the amount owed. With a judgment the creditor has the equivalent of a loaded legal gun pointed at you although the trigger has not yet been pulled. You then receive a Notice of Judgment from the court that typically states you have 30 days to pay the debt. If you do not pay the creditor has a legal right to go back to court to get a judgment execution order (this is pulling the trigger) to use such actions as filing a lien against your home or other property, wage garnishment (in states where this is permitted) or seizing your personal property to collect the debt. If you own a home and the creditor places a lien on it, you would have to pay the lien before you can sell, refinance or obtain an equity loan.

You have the right to appeal the judgment but if you owe the money it will only delay the inevitable. State laws vary on judgments but it is not uncommon for a judgment to be valid for up to 10 years which gives the creditor a long time to work on collecting the debt. Needless to say, a judgment on your credit report is a big negative mark as far as future borrowing power and may have implications in job searches, promotions or even getting insurance. Not as devastating as a bankruptcy, but enough to make life more difficult and expensive than it already is.

To avoid a judgment, determine what monthly amount you can afford and send it to the collection agency, certified with a return receipt, with a written statement that you will pay that amount each month until the balance is paid. Most creditors will not turn down payment. However, if they do refuse and return payment and send your account to a lawyer, repeat the process with the attorney. Often you will get a favorable response. If not, and they take you to court you will have a copy of the offer and proof it was received to show to the court that you made a reasonable attempt to pay the debt.

Answer 3

if you owe the money and haven't paid them they can sue you. but a lot of times they will say they are going to sue u and don't. have you ever heard of dave ramsey? he's a really good financial advisor and a bit of a legal expert on this subject. check it out. it'll save u a heart attack and a head full of gray hair. p.s. see if u can settle with the credit card company. say u owe 6,000. save up 2,500, then call them and ask if they will close the matter for that amount. then send them the money. most times they will accept it. Good luck fighting the man and seriously check out dave ramsey.

Answer 4

You should contact a lawyer in your state and seek legal advice.

These laws vary by states.

If you are concerned about a potential creditor suing you regarding your delinquent payments, a good rule of thumb is contact them and try to see if you can set up a plan of action to pay down or pay off your debt.

Also you may want to read up on these laws regarding consumer credit: Check out the link below:

http://www.cardreport.com/laws/summary.html

It is very good to learn about these laws to protect your rights!

Hope this info helps you.

God Bless....

Answer 5

They can sue you by filing a lawsuit naming you as the defendant.

Answer 6

Anybody you owe money to (e.g. for breach of contract, negligence, etc.) can sue you.

Answer 7

The take you to court for failure to pay & breach of contract.

Answer 8

you owe them money and you have to pay them. or you could settle your accounts for less than the balance with http://www.fdnsolutions.com

Answer 9

pay your bills and you wont need an answer to this question