How Often Do Credit Card Companies Sue Debtors?
Many people pay their credit card payment on time because they do not want to be in financial and legal trouble. According to the community of DebtConsolidationCare.com, the likelihood that a debtor will get sued on average, is about 10 percent, or 1 in 10. Below are some methods and ways that the credit card companies go about collecting on a debt that hasn't been paid.
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Credit Report
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Before suing, a credit card company will report the individual to credit monitoring agencies that will have a negative impact on their credit score. This may prevent them from earning credit or loans in the future.
Collection Agency
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Before suing, a credit card company will give your debt account information to a collections agency, which will try many ways to get you to collect-- these include letters, phone calls and personal visits to your home or work by a collections representative.
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Co-Signer
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If you have a co-signer, you are less likely to be sued, because the credit card company will begin to contact the co-signer to pay on the debt amount or face a penalty on their credit report. In these cases, a co-signer is more likely to pay to avoid any impact on his credit.
Court Fees
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Many credit card companies will only sue an individual if it is their last resort. In these cases, the individual may not only be sued for their debt, late fees and accruing interest, but also for the credit card company's court costs.
Amount of Debt
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Usually credit card companies will only sue if there is a large debt that is owed, usually thousands of dollars, $5,000 or more. This is because it may be worth their time to get this money back than it would to sue for a lower debt amount.
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