Can a credit card company sue you for not paying the balance in full when the tell you to?

Question

After some rough financial times, I defaulted on the card and it went to a collection agency. I made payments automatically for a while then they offered a settlement. I couldn't afford to settle. They stopped taking the payments out of my bank account, now another company called to tell me they're going to sue unless I settle. I want to know if I have any rights.

Answer 1

The two first links are very important

http://www.creditinfocenter.com/debt/settle_debts.shtml

http://www.creditinfocenter.com/rebuild/debt_validation.shtml

What you were doing was probably paying the collection agency rather than the credit card company. It sounds like they sold the bad debt to another company. Paying to the collection agency rather than the credit card company probably wasn't the smartest thing to do. What you should do is contact the credit card company and find out what the status of your account and bad debt is.

I probably wouldn't pay the company that is threatening you. Your debt isn't with them it is with the credit card company. It sounds like they are a third party trying to collect and it is probably illegal for them to threaten to sue you.

Here is something interesting I found:
A collection agency could offer to settle a $1,000 credit card bill for just $500. But once they're paid, the original creditor can still come after you for the other $500.

Maybe somebody knows the name of the free legitimate credit counseling service where you can go for advice.

http://www.fair-debt-collection.com/statue-limitations.html

http://www.creditinfocenter.com/rebuild/statuteLimitations.shtml

Why should you care about the Statute of Limitations (SOL)?
Every day, consumers pay off collection accounts and charge-offs which they do not have to pay off because the Statute of Limitations has already expired for the open account. Consumers pay off these accounts because the accounts still appear on their credit reports.
This information can be a powerful weapon in unburdening yourself of old debts, as creditors have a limited time in which to sue you. Remember: the Statute of Limitations begins to run from the day the debt - or payment on an open-ended account - was due. Also, this has nothing to do with how long an negative credit item can remain on your credit report. To view these credit reporting rules, click here.

Consumers also pay off these accounts when they are not on their credit reports. Even though an account was removed from their credit file, a collector watched their credit report for any activity (actually the computer was watching any credit activity). When the collector spotted the activity, he called the consumer for payment. All the consumer needed to say to the collector was, "I have an absolute defense--the Statute of Limitations has expired."

The Statute of Limitations does not cause your debt to go away after it expires. If the creditor files suit, the consumer has an absolute defense. The consumer must offer the new evidence to avoid a judgement. The evidence will consist of papers the consumer files to support his claim. If the creditor sues you, and you do not prove to the court that the Statute of Limitations expired, you will have a lost lawsuit and a judgment against you.

When does the Statute of Limitations start?
You might be asking yourself, "It has been such a long time since my "open account" has had any activity. When does my Statute of Limitations started ticking." Use your credit report as a reference. Your credit report will tell you the date of last activity for your account. You will have your credit report with the date of last activity and a certified letter stating that the statute of limitations expired.
Depending on what state you live in, if you make a partial payment, you could be postponing the Statute of Limitations' taking effect on your collection account or charge-off. A collector might call you one day and say you waived your rights when you made a deal with the collection agency. Do not take anything a collector tells you for granted. Make them prove it to you, in or out of court. For about half the population, the Statute of Limitations started ticking the day they made the last payment for their account.

What state should I use in figuring out the Statute of Limitations?
According to Ron Opher, of www.ron4law.com: In my opinion, the FDCPA applies, and so the only relevant jurisdictions are where the consumer signed the loan application and where the consumer currently lives (bank location is irrelevant). If those states are different, I believe the creditor has the choice of where to sue and can select the state with the longer SOL. There may also be an argument that the contract was signed "under seal" which might lead to a longer Statute of Limitations than an ordinary contract.
Summation:
Even though a debt is an absolute promise to pay, if the Statute of Limitations expiring is in force and the creditor tries to force you to pay the debt, you have the right not to fulfill the promise (debt).

Answer 2

This Site Might Help You.

RE:
Can a credit card company sue you for not paying the balance in full when the tell you to?
After some rough financial times, I defaulted on the card and it went to a collection agency. I made payments automatically for a while then they offered a settlement. I couldn't afford to settle. They stopped taking the payments out of my bank account, now another company called to tell me...

Answer 3

Credit card companies can't sue you for not paying the balance in full, because all of their the customer agreements clearly state that you carn make minimum payments.

RE:
>Can a credit card company sue you for not paying the balance in full when the tell you to?
>After some rough financial times, I defaulted on the card and it went to a collection agency. I made payments automatically for a while then they offered a settlement. I couldn't afford to settle. The...

Answer 4

You can not even file bankruptcy on credit cards any longer from what I understand. They can sue you and then get a garnishment against your wages or property. If they sue and win they will also take out attorney's fees and court fees from you. If all you can do is pay $25 a month offer that to them....but remember they usually know what you make and can find out where you work really easy. If you have no income tell them that.

Answer 5

As soon as you are in default, they can sue for full payment even if you are making payments. However, if a collection agency threatens to sue, laugh in their face. If they were actually going to sue, your first notice would come from the process server. When it comes to collection agencies, if it is not in writing, it never happened.

Answer 6

Yes - they can sue you for non-payment. You did not agree to the settlement, and they have a right to the funds. If you declare bankruptcy, they can no longer sue. I worked in the industry for 3 years and my mom has been in the industry for five. I'm sorry for the bad news.

Answer 7

Yes they can, unfortunately they told you that in the small print, that is why you need to cut up all of your credit cards. They set you up for failure, they want you to go into debt with them and they take you to the cleaners when you get late. Sorry to hear of your misfortune but you must pay. Good luck

Answer 8

Yes they can sue you

Answer 9

As long as your making payments, they cant do anything. If there no longer taking money out of your account start sending them checks.

Answer 10

Yes they can. When you opened the account you signed a contract....