Can credit card collection agencies sue you?
If debt collectors have trouble reaching you and settling the debt, they may legally be able to sue you. Depending on the laws of your state, if you ignore a summons — even if you believe the debt is too old — the debt collector may get a judgment to go after your assets or garnish your wages.
How likely is a collection agency to sue?
About 15% of Americans said they had been sued by a debt collector, according to a 2017 report by the Consumer Financial Protection Bureau. Of those, only about 26% attended their court hearing.
What can a collection agency do if I don’t pay?
Collectors can sue you for a debt of any amount. If they get a judgment against you, they also can ask the court to garnish your wages to enforce the judgment. Don’t ignore a lawsuit summons, even if you believe the statute of limitations has passed on your debt.
Can a collection agency still try to sue you?
Even if a collection agency can no longer sue you, they can still make efforts to collect the debt from you. That includes calling you, sending letters, or reporting the debt to a credit bureau if the debt is within the credit reporting time limit.
Can a credit card company sue if you don’t pay?
Credit card companies consider the debt’s amount, its recoverability, and legal expenses before suing. However, this consideration doesn’t give you a get out of jail free card regarding credit card debt. If it was, many more people may choose not to pay. So if credit card companies don’t immediately sue, what will they do about unpaid debt?
Can a debt collector sue over an old debt?
Similarly, in some states, sending a written statement acknowledging that you owe an old debt may restart the time period during which you can be sued. If a debt collector sues over a debt that has gone unpaid for longer than the statute of limitations period, you have a defense to the lawsuit.
What’s the Statute of limitations on suing a debt collector?
The statute of limitations bars creditors from suing for unpaid debts after a certain period of time. If you have old, unpaid debts, you might be safe from a lawsuit to collect the debt. A creditor or debt collector has a limited number of years to sue you for an unpaid debt. The time period, called the statute of limitations, is set by state law.