How much money does someone have to owe a credit card company for them to sue someone?

Question

Both my credit card companies sent me letters saying they will write off the debt, garnish my wages, and possibly sue me, I only owe them $4,200 for one and $3,300 for the other. Will they really sue me for that?

Answer 1

Pull up a chair and let me educate you on how this nonsense works.

In the vast majority of cases credit card companies either send these debts to collection agencies, or they are purchased by the agency.  To make money, they need to collect these debts in the most cost effective way possible. That usually involves lots of automated calling and letters.  

They get (on average) 30% of whatever they collect.  If you owe about $500, they can get back about $150.  But they don't want to invest a lot of man hours doing it, or hire lawyers.  And if you live in a differant state where they don't have an office, they have to hire an outside agency to continue the collection...more money out of their pocket.

Therefore, whether the sue you is going to involve two things. How much you owe, and where you live.

They usually don't mess with debts under $500.  But if you live near an office, it's absolutely no trouble for them to sue.  I have seen a local collection agency frequently go to court with a dozen lawsuits at a time, and the court puts them all on the same docket.  It's an amusing assembly line on that day, seeing the same attorney handle several cases in a row.  

If the debt is over $2000, that makes you a target, since there is a decent profit to be made.

So to answer your question, there is a danger that you could be sued for both debts....but it depends on the agency who is going after you.  

If your local court has computerized access to court records, do a quick search to see how many lawsuits they file in your court. If it's a lot....be worried.

Answer 2

Slimick's right.

People sometimes anwer on this forum and tell each other creditors probably won't sue for small amounts. I'm willing to bet that they will consider suing for these two cards because the amounts are over $1000.00. It's up to the individual creditor whether or not they want to invest the time and expense of pursuing a judgment. Remember, though, if they due sue and win, you'll probably be responsible for court costs and attorneys' fees.

Answer 3

First, credit card companies cannot garnish your wages without taking you to court and winning a judgment against you.

Every creditor is different and will respond differently to defaulted debt. These are not insignificant amounts....It's likely that at least one will attempt to get a judgement against you.

Offer settlements in the 50% range and go from there to avoid this situation....You'll be a lot better off.

Answer 4

What you have received is probably an intent to sue letter.  They are letting you know you need to contact them with acceptable arrangements to avoid it being referred to their attorney.  The amounts are not small amounts, it is worth their while to sue you--even with paying attorney fees.  If they have sent this letter, they have determined that you have assets--possibly a job, a bank account or a mortgage.  If it goes to court and they get the judgement, you are looking at possible garnishment of wages, garnishment of bank account or a lien put on your home--all depending on the state you live in.  Do not avoid the letters.  Contact the credit companies and try to make arrangements with them.  Let them know your financial situation--most companies will work with you.  Good Luck!!!

Answer 5

anyone can sue anyone else for any reason