This is What You Should When Your Credit Card Company Sues You

by contentwriter

Author: Lera Jackson

Getting sued by a credit card company for an old debt might be frightening. It can be difficult to respond to such a lawsuit especially if you can’t afford your credit card bills. 

However, delaying a credit card company’s lawsuit would only make things worse in the future, so it is crucial to find a solution immediately. This article will be covering credit card debt collection litigation.

Does a credit card company have the right to sue you?

Of course, they have a legal right to sue you. After 180 days of missed payments, your credit card company might take one of the three actions:

  1. Late payments can be added to your credit report as you become 30, 60, 90, 120, and 180 days late. Unfortunately, this action can ruin your credit report and affect your ability to securing a loan in the future. After six months (or 180 days) of late payment, your account might be charged off and considered a business loss. While your loan has been erased, it will negatively affect your credit score.
  2. They may sell the loan to a third-party debt collection company, which may threaten to sue you. 
  3. They may file a lawsuit to compel you to make a one-time payment or create a repayment plan for the debts.

How to prevent a credit card company from suing you?

You’ll probably receive calls, emails, letters, and notices on your online banking platform to reclaim the money until the financial institution files a lawsuit against you. 

In case you ignore these attempts, a credit card firm may file a lawsuit against you to get money.

However, you may avert a lawsuit by answering these phone calls and agreeing to set up a payment plan. 

Nevertheless, keep in mind that whatever you say during these calls might be used against you as the calls are recorded. 

What to Do When Your Credit Card Company Sues You?

According to research by the Consumer Protection Bureau, 70 million Americans have delinquent credit card debts with third-party bill collectors. Around 15% of the collecting efforts end in court action.

Here are information on what to do in case your credit card company sues you.

  • Respond immediately after receiving the summons

According to the regulations in your state, you will either be delivered a summon in person or through the mail. A summon provides details on the organization suing you, the amount of the debt your owe, the date of the hearing, and the time for responding. When a summons is ignored, the credit card corporation automatically wins the case.

  • Make a payment schedule by calling the collection law firm

The simplest way to resolve the case could be to make a payment plan and settle it without going to court. It is preferable to make a payment schedule with the collecting agency.

  • Prepare yourself

Arrange previous credit card agreements, bills, and paperwork in time order. These records may be necessary to confirm the accuracy of your payments and debts.

  • Consult with a consumer protection attorney

You should employ a legal professional with experience in consumer protection or fair credit.


If you don’t pay a debt, your credit card company may file a lawsuit against you. Nevertheless, there are several ways to stay afloat from getting to that point on the debt delinquency calendar. Carefully pay attention to the tactics discussed in this article to save yourself from unforeseen circumstances and unfavorable lawsuits. 

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