Can a Credit Card Company Sue You for Nonpayment?


Quick Answer

A credit card company can sue someone for nonpayment, but customers can take action should companies file suits against them. Credit card companies, or creditors, and debt collectors may file lawsuits against customers failing to pay bills, giving customers the burden of proving the debt exists. Upon receiving notice of legal action, customers should always start by submitting written or verbal acknowledgment of the legal action, say experts at the Consumer Financial Protection Bureau.

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Full Answer

Acknowledging receipt of a legal notice sent by creditors or debt collectors is an important step for consumers to take. Companies filing lawsuits request notice of receipt from consumers, and it is critical that customer respond by the requested date, say experts at the Consumer Financial Protection Bureau. The Bureau warns consumers to always submit a response rather than letting the notice go unanswered. Ignoring companies' contact attempts may hurt consumers, as courts may impose judgments in favor of the creditor. This lets creditors receive compensation for at least the amount they claim customers owe, and often more.

Responding to a creditor's request gives customers some power, as they can appear in court and request full documentation to prove a credit card debt exists. Banks often sell debt to borrowers with weak or nonexistent factual evidence of customers' noncompliance, which gives consumers a chance to settle in their favor.

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