Will a credit card company likely go to the trouble of suing for a 1000.00 debt?

Question

Will a credit card company likely go to the trouble of suing for a 1000.00 debt?

Answer 1

Yes.

Answer 2

Hmm.  Well it will be on your credit report.  One thing you may do is contact them say you just can't pay it and they settle, but it will still go on your report.  $1000 is nothing, just pay it ASAP.  See if you can close it out, and adjust the interest as well.  Saying you are having trouble paying and could use some assistance, payment plan, etc.  Otherwise it will cost you three fold in the longrun, when applying for credit, purchasing a car, home, cell phones, etc.

Answer 3

Call them, they have people who can work with you to set up a payment plan. They don't want to sell your debt, they'd rather you pay it back.

Answer 4

and as they wait for the collection agency to get you to pay, you will gain rediculous amounts of intrest, making the payment astronmical

Answer 5

If this debt if from a major bank, then YES, they will sue (they have the $$ and the resources) and also 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.

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.

Now tack on the monthly late fees, interest and that $1000 debt balloons into a lot more making it worthwhile for them to seek civil suit and win a judgment and garnish your wages.

Best case scenario, work out payment plan, it will look better for you and save you headaches for years down the road.

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.

Answer 6

They will sell your debt to a collection agency.  You do NOT want that to happen.  Collections agents are used to treating people like crud so that they pay up, and they are very good at it!

Here's the good news: Your credit card company doesn't want to sell your debt to a collection agency either.  Your debt might be $1000, but they would only get maybe $50 by selling it.  If you call the credit card company and explain, they may be willing to either reduce your debt or your interest rate so that you can make the payments.  That way, the money will go to them instead of to a collection agency.

Here is an article about it by L. Pulliam Weston.

Answer 7

Probably.  The account will most likely be turned over to a collection agency before it gets turned over to an attorney for litigation.

Answer 8

They'll turn over to a collection agency, and good luck with the pestering you'll get - plus your bad credit record over all. Not a very good way to go.

Answer 9

No. They'll charge it off or turn it over to a collection agency that will hound you to pay it. PLUS your credit score will be severely impacted. Which means that you will have trouble getting a car loan, future credit cards, maybe even utilities in a new apartment without a down payment.

What you can do is call the company and work out payments. Then start chipping away. $1,000 isn't that much if you work at it. It'll make a BIG difference for future credit.

Answer 10

Not sue rather turn over to a collection agency.

Answer 11

They will likely sell the debt to a collection agency, who will call you incessantly until you pay up.

The delinquency will also be noted on your credit report.

Answer 12

No the credit card company will no doubt write your debt off, but beware those collection agencies that will  buy your debt form the credit card company will come after you