Can credit card companies sue me?

Unlike the creditor of a secured debt, like a mortgage, who requires collateral for the debt that it can sell it to satisfy the debt, the creditor of an unsecured debt, like a credit card, can only file a lawsuit against you personally as recourse to recover an unpaid debt.

What should I do if a credit card company is suing me?

Here’s how to respond when you are sued for credit card debt:

1. Don’t ignore the summons. When you get a court summons for credit card debt, pay attention to it—and make a plan of action.
2. Verify the debt.
3. Consider debt settlement.
4. Contact an attorney.
5. Look at your budget.
6. Request a payment plan.
7. Make a lump-sum payment.

What happens when your credit card company sues you?

Ignoring debt collection calls usually doesn’t make them go away. Ignore your credit card debt long enough, and your credit card company may sell your account to a collection agency or sue you in civil court for the balance.

What’s the Statute of limitations on suing a credit card company?

One factor that can influence the timing is the statute of limitations in your state. Some states allow creditors to sue over an unpaid debt for up to 15 years, while others permit it for three years.

Where can I file a complaint against a credit card company?

You also have the right to file a complaint against a credit card issuer with the appropriate regulating agency. The Consumer Financial Protection Bureau (CFPB) is responsible for enforcing laws for credit card companies and should be your first point of contact.

What happens if you ignore your credit card debt?

Ignore your credit card debt long enough, and your credit card company may sell your account to a collection agency or sue you in civil court for the balance. While it’s best to try to work with your credit card company before a lawsuit is filed, it’s also important to know what to expect if you receive a summons and how you can respond to it.