How Often Do Credit Card Companies Sue for Non Payment

How Often Do Credit Card Companies Sue for Non Payment

Sometimes if you use a credit card, it can be difficult to know when your credit limit has been reached and you’ve gone over your limits. In this article, we’ll discuss how often companies sue cardholders for non-payment as well as the pros and cons of having a credit card.

How often do credit card companies sue for non payment?

Credit card companies have been known to sue their customers for not paying their bills. In the United States, the average number of lawsuits filed by credit card issuers against consumers was 1,005 in 2016. Furthermore, it is estimated that less than 5% of these lawsuits result in a payment from the customer.

Different ways in which a cardholder can have their card seized

Cardholders who don’t make payments on time may find their credit card seized and they will be billed for the balance with a new interest rate, often at a much higher rate than originally agreed upon. Some card issuers will also charge penalties such as fees, late fees, or even negative interest rates. These penalties can add up to hundreds of dollars each month and eat away at the balance owed significantly.

When the customer is not able to pay they utilize different tactics to try and get the money from them

Credit card companies will typically only sue for nonpayment if the customer is outside of their grace period. This means that they will pursue legal action if a payment has been missed for more than sixty days. If the company decided to take the case to court, they typically expect a judgment in their favor because creditors can easily win in small claims court.

The process of how a lawsuit is filed

When a credit card is not paid for, the company can sue the person who used it. This is because they have already lost the money on the card and are entitled to get it back from the person who owes them. The process of how a lawsuit is filed depends on how old you are when you default on your credit card. No matter what age you are when you default on your credit card, this will be stated in your credit report.

Conclusion

Credit card companies will sue for non-payment of credit cards. Most credit card companies will sue you after 3 missed payments. There are also some credit companies that will sue you after 6 months of missed payments. This can be devastating to your personal finances if this happens to you.