Threatened with lawsuit?

Question

is it true that only the original creditor can file suit for unpaid credit cards? if the account has been sold to bottom feeding debt buyers can they really sue or are their threats to sue illegal.

Answer 1

Whoever owns the debt is able to sue for the amount owed. Generally you won't be sued unless the balance is high or you have assets they could go after.

Answer 2

I don't think that it is legal, probably more of a scare tactic, but either way I would try to contact a financial counselor or lawyer and ask them as the laws in every state is different.

Answer 3

Though it is rare for collection agencies to sue people over old credit card bills they certainly can. If the statute of limitations isn't up on the account they can procede to sue you. However, they can't threaten you into paying by saying they will sue unless they fully intend to do so.

Best of luck!

Answer 4

Sorry to say this is not true.  However the Fair Debt Collection Practices Act DOES NOT apply to major credit card banks?   It applies only to the collection attorneys and professional debt collection companies they might hire. Original creditors are regulated by state law; however, the major credit card companies follow policies that closely mirror those of the FDCPA and will comply with your request to stop phoning you at home and work, etc., just as if you were dealing with a collection service. If you believe you have been harassed by an original creditor, or that the original creditor has done something illegal or threatening towards you, then research your state laws on the subject and contact the proper authorities to file a formal complaint. Typically, the Attorney General in your state is the proper authority to contact.



And as mentioned, if the debt is within your states statute of limitations to seek civil action in court, then the collection agency can do so but usualy only for a large debt.

Hope this answers your question

LEGAL DISCLAIMER:  The advice contained herein is for informational purposes only.  It is not to be construed as Legal Counsel nor Legal Advice.