When can a credit card company sue you for non-payment?

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If your credit card debt goes unpaid for long enough, you could face legal consequences. Here's when it may happen.

Credit cards can be a convenient way to manage expenses, but they also come with a serious responsibility to repay the borrowed funds on time. When a credit card account goes unpaid, it can result in late fees, penalty interest rates and damaged credit scores — and in certain cases, non-payment can lead to even more severe repercussions, like being sued for your unpaid debt.

Receiving a lawsuit summons is typically the final warning that your debt has reached a critical stage. If the court rules in favor of the credit card company or collection agency, they may be granted a judgment that allows for methods like wage garnishment or property liens to recover the owed amount. Remember, though, that each state has a statute of limitations on debt, which is typically between three and 10 years.

 

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