Can a credit card company take me to court for non-payment on the balance?
Relax. It is HIGHLY unlikely that a credit card company will spend their money on lawyer and court costs for $1,600. That's peanuts to them. Credit cards are unsecured debt so they cannot take a lien against any property you own like one poster wrote. That is completely false! Now, they can indeed take you to court and the court can garnish your wages to repay the debt. But that's not usually done to the little guy. It's for the person who charges up $25,000 (for example) on their card and then doesn't want to pay. Debt collectors will do and say ANYTHING to intimidate you. They will lie to you and promise you things (pay $15 now and we will set you up on a hardship program with no interest and low monthly payments) that they never deliver on.
by kja63 - 7 hours ago
yes they can take you to court, but most likely they are using it as a scare tacttic. Offer to pay them a few bucks a month untill you get back on your feet.
by Lewis A - 7 hours ago
Yes...but it's rare...the balance is too small to deal with. They will probably sell your debt to someone else and they too will send mail and call too with the same threats.
by dual_reality - 7 hours ago
They can... but they won't. Credit card companies are owed billions of dollars. They have thousands of customers that owe 20 times as much as you owe. They are trying to convince you to pay the debt that you owe them. The longer you wait to pay, the worse it will effect your credit. You should scrape together as much as you can and see if the CC company will settle the debt for less than the full price (25% - 50% of total).
by MR MONEY - 7 hours ago
They sure can. But I doubt whether they do it for $1,600.
by amiladm - 7 hours ago
They did it to me for $2400. Actually at that point it was the collection agency. They took me to court. The thing they can put a freeze on your bank account which is what they did to me. The freeze didn't come off unitl I went to court. It was really horrible because I didn't have any cash for weeks because my account was frozen. It was also very EMBARSSING. Once I got to court I found out they can't take any cash under a certain amount don't remember how much exactly ($2500 - $5000) but if I didn't make a payment plan with them they would start garnishing my wages which would be even more embarassing. So I made a payment plan with for like $100 a month. Then what I did is used my income tax return and neogiated my balance down with them by telling them i could afford to pay less then the balance due but they would get it all at once or they could just keeping accepting my $100 monthly. I ended only paying $2000 of $2400 I owed.
by Sophie - 7 hours ago
Yes, a bank or collection agency can take you to court, but it is not a criminal proceeding: they are suing you. It varies from state to state and country to country, but you should know right off the bat that it is not a crime to owe money to institutions that you can't pay. 9 times out of 10, for an amount as small as you mentioned, they won't even bother. They threatened you with lawyer fees, but you have to remember that they have their own lawyer and processing fees to consider. This is a large bank that doesn't go to the ends of the earth to get every cent owed to them, but is always considering the bottom line. A typical court procedure is that the bank sues, you don't show up to defend yourself, the court rules in favor of the bank and orders you to pay up. Depending on the severity of the case and the court's mood, they may order you to pay the bank's court fees and have your wages to garnished (up to a certain percentage as allowed by your local government). It is extremely rare for a court to order property seized unless your debt is on par with the value of said property (i.e. you owe a hundred thousand dollars and you happen to own land). Finally, if the case is really that bad, there is always another option: bankruptcy. filing for bankruptcy protects you from debt collection, wage garnishing and property seizure. When the procedure is through, your debt is wiped clean and you begin rebuilding your credit. My final advice is this: get a professional opinion. Debt law is different everywhere, and maybe you live in some backwater state that thinks people in debt are scum, but probably not. Don't listen to people who say you deserve everything the bank does to you. Being in debt is a serious problem for most Americans, rich and poor, but there are second chances. There are even programs in many states that offer free debt counseling. Visit your state or municipal government websites or call them and ask. Until you are actually officially sued, don't worry about court.
by dratboy - 7 hours ago
There is a statutes of limitations on credit card debt. Look up what it is for your state. If you don't pay anything on it for 2 years or whatever it is then they can't claim it, it's too late for them. The credit card company sells your debt to a collection agency. Then they start calling and if send them money or promise to send money the clock starts all over again. It sounds like the agency is desperate to get just a $15 payment so that they have an other 2 years to get paid. If you really don't have the money than don't send anything and don't say that you will. I doubt that they will take you to court.
by kadan - 7 hours ago
Can they bring you to court: yes Will they bring you to court: absolutely not. This is a technique used by collection agencies to scare you into paying them. Here's how it works: When your bill goes into default, the credit card company sells your account to a collection agency. The collection agency pays roughly 10% of your debt to the credit card company, and then you owe them the money instead of the credit card. The collection agency then calls and sends letters designed to scare you into paying them. They invested 10% of your debt in the hope that they can get you to pay the full amount, and they turn a profit. That's how the business works. The threat of court is ridiculous. The company doesn't have the resources to take all of their clients to court. It would cost them more than $1600 in lawyer fees just to get you IN the courtroom, so even if they win, they lose money by taking you to court. You have absolutely nothing to worry about. In seven years, this debt is erased from your credit score. Don't worry about it. By the way, DO NOT offer to pay them ANYTHING or make ANY agreement with them of any kind. Simply hang up the phone when they call. If you agree to pay them ANYTHING, it resets the 7 year time table to erase it off of your credit history. If you do anything else, you're only making things more difficult on yourself than they need to be. As far as garnishing your wages or placing liens on your property, most states do not allow it. I have relatives living in PA who owe tens of thousands of dollars in debt, and they cannot by law touch their paycheck, home, tax return, or anything else. The same goes for many other states. All they can do is send letters and call. Check the laws of where you live. Anyone who tells you any different is wrong, or they're a liar.
by GoofGas.com - 7 hours ago
The bottom line is don't talk to them. Tell them you are in the midst of filing bankruptcy with your lawyer and you are not acknowledging the debt. If you own a home or a car worth over $2500 it may be worth it for you to file bankruptcy to protect your existing assets and prevent garnishment of your paycheck. I doubt seriously that any company would go to court over such a small amount. It costs them money to file and if you have no assets they can go after it's a waste of their time and money. If the calls are frequent change your phone number to unlisted or get a cell phone. If they do take you to court do not appear. They will find for them in a default judgement for the money you already owe them plus court costs. But again highly unlikely it would go that far over measley $1600. A year or so down the road you will get an offer from the lender to settle for half of the amount if you pay it off. If you have the money at that time pay it and get it off your credit record. Otherwise after 7 years the debt has to be expunged off o your credit record whether you declared bankruptcy or not. The worst downside to all this is that you will have to exist without credit for 7 years. Hopefully you will get used to this and never go back to paying those terrible interest rates in the future.
by aiguyaiguy - 7 hours ago
no scam, they will take you to court and get a judgement against you. I don't think they do it that fast though. They just told you by the end of the month so they can get you to pay without having to go to court. These kind of court cases take a long time so maybe you should try to make a settlement with them. It will look better on your credit report than a judgment.
by luciousgreeneyedlady - 7 hours ago
wow, you have alot going for you ( in a bad way)! You are pregnant. You are 20 years young. You owe money. Well, it's not that bad, your life will be better soon, don't worry! Why not just pay it with another credit card or loan some money from your parents? Or your boyfriend/husband for that matter. I heard you work so that means you can just call them up (the collection agency or whoever is threatening you to court) and set up a payment installment plan of $50 dollars a month or more. It depends on what you can agree on. Crying on the phone won't do you any good. there are dozens and dozens of people in your same position (I mean about the dept thing) and so you shouldn't feel like they would care if you cried to them. But I feel sorry for you, you seem like you are all alone in this so just do your best.
by Aznq_t31 - 7 hours ago
$1,600 is not that much debt in the grand scheme of things. Even if you've fallen on tough times, you should at least try to pay something on the card, $30, $40, $50 a month, anything to show the creditor that you have intent to pay off the balance. (After over a year of not paying anything shows to the creditor you have no intention of paying off the debt.) Also, do an Internet search on "Consumer Credit Counseling services". A CCC company will work with you and your credit card company to waive any ongoing interests fees to help you pay off the debt. Also, if you come across a CCC service that charges you a fee for their services, then don't use them. There are services out there that don't charge anything. Good luck!
by RockC - 7 hours ago
From personal experience...THEY WILL SUE YOU AND WIN, THEN YOU WILL OWE THEM FOR THEIR ATTORNEY FEES, COURT COSTS AND ANY ADDITIONAL COSTS THEY CAN GET FROM THE JUDGE IN ADDITION TO THE ORIGINAL DEBT! They will garnish any wages you earn to the tune of up to 50% of your income, any income tax returns from the government (state and federal), and depending on the state you live in they can get a lien on any home or other real property you have. Also the longer it takes you to pay off this court judgment the longer they will be able to charge you for higher interest rates up to 75% of the original amount owed. You could wind up having to pay more than 50000 dollars on the 1600 you currently owe. Better to make advance arrangements to pay them at least 1/10 of the balance every month or about 160 dollars before they take you to court...at the very least pay them something to keep it out of the courts.
by Tristam H - 7 hours ago
I like Paula M's answer. Yes they can take you to court, but its a process. And that process takes time. I just got hit with a garnishment so I'm going to have to file bankruptcy to stop it. But they'd been threatening me and didn't go to court until 2004. And here two years later, the garnishment just started. I should have been proactive instead of reactive, but things happen. Don't listen to the creep slamming you becuase you are behind. Bad things happen to good people. I'm in the same boat. Be encouraged....
by mochachreme - 7 hours ago
They have to take you to court if they want a judgement against you. The furthest they can go without court is collections. A judgement will allow them to attach your wages, income tax return, etc. Suggest contacting them and making payment arrangements. They would much rather get something over a long period of time than have to go to court.
by tim2honorgod - 7 hours ago
Yes they can. You have a legal obligation to repay debts whiich you contracted to pay. If you had contacted them first they may have been more lenient but now you are just a delinquent "dead beat"
by ken c - 7 hours ago
They can and will...and probably get a garnishment Order to either your bank account or paycheck....The Judgment will include lawyer fees, late fees, court costs.....$1,600 will balloon up to 2,500 or $3,000 plus interest..... You need to propose a repayment plan (in writing) and get a written response....don't give them access to your account or post dated checks....they'll cash them all at once or clean your account out.
by Paula M - 7 hours ago
Hard times or not....yes they can sue you and win.
by Jack - 7 hours ago
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