Can a credit card company sue you? They can, and they will. While it might seem unfair that you owe a few thousand dollars and are being sued when these companies obviously have billions, that’s simply the law. You signed a contract when you started using the card. So if you wonder, can a credit card company sue you, you need to know that they can and they will if you don’t pay.
Credit card companies make their money by keeping people paying for years. They make their money on the interest that you pay on the debt. In fact, they make several times what they originally “loaned” you by allowing you to make purchases on credit. Can a credit card company sue you?
Why wouldn’t they? If you’ve stopped paying, you’ve stopped their income stream. It doesn’t matter if you were “loaned” $500 and paid back $3000 in interest over the years on that same $500. You still owe them and they can and will sue because you broke the credit card agreement.
Some people don’t realize that when you sign a credit card agreement, it’s not something to be trifled with. It’s a legal and binding contract. Break it and you can be sued, no matter what.
If you owe a credit card company a lot of money and fear being sued, you can contact them and try to arrange payments that will satisfy them. If you’re on the verge of being sued, they’ve probably already sent the debt to a collection agency.
Contact them, in writing, with a proposal about payment arrangements. If they have already made you an offer about paying less than you owe, as many will do, that’s your best bet to get out from under the debt before you’re sued.
Some agencies will offer to let you pay from 50% to %75 in one lump sum to erase the debt. Some go even lower, and let you make a few payments to do so the same thing.
Some collection agencies make such an offer about the second time you hear from them. The first time is just presenting you with the debt, telling you to pay it, and mentioning that if you don’t dispute it within 30 days, they’ll assume the debt is yours.
The next contact might not be anything but another demand for full payment. After that though, most will start making offers. Some make better offers as time goes by, and some don’t.
Keep in mind, the longer you wait, the larger your debt becomes. Interest accumulates even if you haven’t used or paid on that card in years.
Many of these companies will make better offers after a long time goes by. If you get a good offer, like paying about $1500 on a debt that’s almost $3000, you should find a way to pay that. Because not only can a credit card company sue you, but when they do you’ll have to pay whole amount plus more interest and court fees.