What legal action can be taken for not paying credit cards?

Legal action can be taken in the court of law for credit card payment default and a civil suit can be filed. Your name will also be a part of the credit card defaulter list in India. What is the punishment for credit card defaulters in India? You will be charged a penalty for late payments.

Can credit card companies repossess your stuff?

Credit Card Purchases Can’t Be Repossessed Credit card debt is unsecured, which means the credit agreement doesn’t name anything as collateral for the loan. So, items you purchased with a credit card can’t be repossessed.

What happens if you fail to settle a credit card debt?

If you fail to settle the debt with the debt collector, it might be sold and resold again. Eventually, a collector will probably refer the debt to an attorney’s office to initiate a lawsuit. Once your debt reaches the debt collection law firm, the attorney will usually give you one last chance to settle the debt to avoid a lawsuit.

What to do if a credit card company sues you?

The creditor may stop calling, and instead knock on your door with a notice of a lawsuit. If a debt goes unpaid and you’ve made no plans to repay it, your credit card company may sue you in civil court for the balance, hoping a judge will order you to pay.

Can you legally stop paying your credit cards?

You can take steps to legally stop paying your credit cards. Many people do not realize you can legally stop paying credit cards. There is no longer a debtor’s prison to punish those who refuse to pay debts. If you honestly incurred the debt without breaking any laws, you can stop paying it at any time.

What happens if you ignore a credit card debt summons?

If you ignore your summons, the court is likely to rule in the debt collector’s favor and your wages could be garnished until you pay back the amount of money that the court rules you owe. If you are sued for credit card debt, your first step is to verify that the debt is actually yours.