What Happens If a Credit Card Sues Me?

What Happens If a Credit Card Sues Me? thumbnail
If a credit card company files suit, legal fees can cause you to fall deeper in debt.

Credit card companies are not in business to lose money. This means that if you do not pay them, they can sue you to collect what is owed. A lawsuit may hurt your credit report and cost you money in legal fees.

  1. Significance

    • Credit card companies will sue to collect monies owed to them. This can cause you to go into additional debt by hiring an attorney to represent you in legal proceedings.

    Effects

    • A debt-collection lawsuit can show up on your credit report. This can adversely affect your ability to get approved for new loans.

    Considerations

    • Speak with your credit card company about making payments in installments. This can give you more time to make payments and avoid legal action.

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  • Photo Credit credit card closeup with shallow depth of field image by Nikolay Okhitin from Fotolia.com

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