If a Credit Card Issuer Sues You
The burden of credit card debt is something very unpleasant but if a credit card issuer sues you, then it can get really nasty. Yes, there are cases when credit card issuers do sue their debtors but more often than not a credit card issuer will bluff with bringing you to court in order to make you pay. For a credit card issuer it is more important to collect their money than to feed the lawyers and debt collectors. Additionally, for credit card issuers debt collection is also related with charges – starting from lawyer's fees, to court fees, to discounts for the debt collection agency. So, credit card issuers will generally resort to law suits if they have no other way to get their money from you.
Many people start to tremble, when they receive threats from a credit card issuer or a lawyer, advising them either to pay immediately, or be ready to go to court. This tactic of pressure is aimed to make you pay right away, thus relieving THEM from further action. Needless to say, that if you can't pay them immediately, no pressure from their side will get them the money. What is more, actions like this, or similar misconduct, like calling your employer, relatives or any third party about your debt, or calling you at unreasonable times like before 8 a.m. or after 9 p.m. is a violation of the Federal rules for debt collection and if you are ever brought to court, you must certainly use all this to your best advantage.
So, the first thing you have to do when a credit card issuer threatens to suit you is not to take their threats in earnest. If you have a lawyer, contact him or her immediately and give as much detail as possible. If you don't have a lawyer, you'd better get one because he or she will be able to give you more professional advice on how to proceed. It does not hurt to have a lawyer, even if you are still not brought to court. What is more, having a lawyer to represent you might help to reach an agreement with the credit card issuer and its agents without the hassle of going to court.
The most important thing, however, is the amount you owe. If you have one unpaid bill or your debt is small then you are hardly worth the effort to be prosecuted. In such cases a threat to sue you is most likely a bluff to scare you and make you pay. But it is also in your best interest to pay your debts without going to court and/or damaging your credit report. And it is also in your best interest to pay it as soon as possible because the longer you postpone doing it, the more interest rate you will have to pay eventually.
It is a different story if your debt amounts to $10,000 or more. This is too much for a credit card issuer to write off as bad debt. You are worth to be prosecuted, especially if this is not the first time the credit card issuer approaches you with demands to pay. But, again, remember, the primary goal of the credit card issuer is to get their money back, not ruin you because if they ruin you, they might not be able to get a penny out of you. One of the things a credit card issuer is most afraid of is that you will file for bankruptcy because in this case they will also be unable to get their money back, so to some extend they will be cautious to put pressure on you because this will hardly get them their money.
Another important factor to consider is the nature of the claims. If the claims are for unpaid debts that you didn't dispute, when you are brought to court, the credit card issuer will most certainly win. For instance, if you borrowed $2,000 and you missed several monthly payments, then you don't stand a chance in court. But if you rejected payment for goods in dispute, while paying off all your other spendings, you still might win but be warned that disputing credit card fraud is not the easiest task.
Sometimes it is easier for you just to pay (if you have the money, of course) than to go through all the hassle of lawsuits. So, even if you know that the threat to sue you is a bluff, you'd better consider ways how to find the money to pay your debts than rely on the fact that you will win a court battle. Even if the creditor decides not to sue you, you are still in debt. The credit card issuer can sell your debt to a debt collection agency, so you will still have to pay it back. So, if a credit card issuer threatens to sue you, there are several important things to have in mind: don't be scared by the threats, find a lawyer and start thinking how you can pay your debt.