Can a credit card company sue over an uncollected debt? The debt is unsecured afterall?

The debt is unsecured afterall. How would a debtor have recourse judicially speaking over an unsecured debt? I was of the mind that unsecured debt afforded no judicial protections.

Thank you Asked by newbie1861225 54 months ago Similar questions: credit card company sue uncollected debt unsecured afterall Business > Financial Services.

Similar questions: credit card company sue uncollected debt unsecured afterall.

Unsecured debt is not optional Unsecured debt just means that they don't have a specific pledge of collateral (your house, in the case of a mortgage, or a car for a car loan). That makes it easier and faster for them to repossess the security. They may even be able to take the collateral without a specific court order, though it varies from place to place.

Unsecured debt doesn't mean that repaying the debt is optional. You signed a contract with them when you applied for the credit card. If you're in default, you're in breach of contract.

The text of that contract specifically authorized various ways for them to collect that debt, including turning it over to a collection agency and taking you to court. You might want to go over that contract. They'll happily send you a copy if you don't have one.

Your primary legal recourse over debt you can't pay is bankruptcy, in which you declare that your debts are greater than what you own and the courts tell your creditors to back off. Declaring bankruptcy is harder today than it was a few years ago. Usually, the court will force you to go through counseling to come up with a repayment plan based on what you can afford.In the process you can usually get rid of some of the interest you owe them, but rarely any of the principal.

If possible, you're better off going straight to the credit card company and making them an offer. Tell them you'll tear up your credit card and pay them some amount each month until the debt is paid off, if they'll lower the interest rate. They'd rather have the money; it's easier for them.

The "well, you took a risk giving me an unsecured debt" defense... let's just say that you shouldn't try it in front of the judge. But you might try it with the credit card company; I'm sure they could use a good laugh. Sources: Reading the fine print on my credit card contracts, which has permanently damaged my eyesight .

That's not what "unsecured" means An unsecured debt is simply one in which the debitor doesn't offer up any collateral (like a house for a mortgage or a car for a car loan). The loan is given based on the reputation of the person applying for it. Regardless of whether or not any collateral is given, when you apply for the credit card, you sign an agreement that says you'll pay back money on a certain schedule.

If you fail to do so, you're in breach of contract. You breach a contract, you can be sued. Just as though you had broken any other kind of legally binding contract.

Sources: en.wikipedia.org/wiki/Default_%28finance%29 .

They're not going to sue you Here’s the breakdown of what will happen First late payment You see a late fee on your next statement. Any promotional balances you have can be lost. 2nd late payment Another late fee.

Promotional balances (like the check you used for 0% until it’s paid off) are most likely gone at this point. 3rd late payment Another late fee, you are now most assuredly reported as being late to your credit bureau This can cause other creditors to raise your rates. Recently, Citibank said they would stop doing this (raise your rates based on performance with accounts other than Citibank’s), and other major issuers may follow suit.At this point, your account may be closed.

Some issuers will keep it open for 6 months. Basically, from here on out, you’re racking up late fees, potentially overlimit fees, and more and more finance charges. You’re continuously being reported late on the credit bureau (30 days, 60 days, 90 days, etc).

You’ve probably gotten some letters or calls from the credit card issuer asking for payment. Your account is being handled by their collections department. Depending on the issuer, they may handle it in house for 6 months to a year.

More if you’re actually making payments. After their set cut-off date, they will "charge off" this uncollected debt, and sell it to an outside collection agency for pennies on the dollar. Now, you’re dealing solely with the collection agency.

They will be much, much, much more aggressive in collecting the debt. Unscrupulous firms will harass you at work, at all hours of the night, and make various threats about legal action, etc...all of these are illegal. All you need to do is tell them (usually has to be written) not to contact you at work, remind them of your state laws about when they are allowed to call (usually not before 8am, or after a certain hour in the evening), etc. You’re right in that this is an unsecured loan...they’re not going to take your car, your house, etc.

1 They can secure a judgment and garnish your wages and never let you know they want money until it is all over. The law is on their side.

They can secure a judgment and garnish your wages and never let you know they want money until it is all over. The law is on their side.

2 Brief answer: You agree to a contract when you get a credit card, and if you violate the terms of the contract--just like any other contract--you can be sued. Davidh .

Brief answer: You agree to a contract when you get a credit card, and if you violate the terms of the contract--just like any other contract--you can be sued.davidh.

" "If being sued by a credit card company for debt can they serve papers to you at your place of business.

I was told most are connected to the banks and or the credit card issuing.

Easiest unsecured credit card for bad credit.

If being sued by a credit card company for debt can they serve papers to you at your place of business.

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