Can I Be Sued If I’m Making Payments To The Credit Card Company?

30 Jun Can I Be Sued If I’m Making Payments To The Credit Card Company?

There are lots of street myths about debts and payments. One prevalent one is that the credit card company can’t do anything if you are making even bare minimum payments. This simply isn’t true.

The statement you receive from the credit card company each month has a minimum payment amount. This will change based on the balance owed, the interest rate charged and whether or not your account is in arrears.

Only by paying that amount or more can you positively avoid litigation or collection action.

Of course, many credit card companies will negotiate with you to accept smaller monthly payments, and if they do that, you won’t be sued if you pay that amount in a timely manner. Watch out though, because even though they are accepting less than their stated minimum, interest and late charges will continue to accumulate. Further, it’s always a good idea to get such an agreement in writing and study the fine print!

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Douglas Jacobs is a California bankruptcy attorney and partner in the Chico law firm of Jacobs, Anderson, Potter & Chaplin. Since 1988, Mr. Jacobs has taught Constitutional law and Debtor-Creditor/Bankruptcy law at the Cal Northern School of Law. He has served as Dean of Students since 1994. He is a frequent lecturer on the subject of consumer bankruptcy law, and has spoken at both state and national levels.
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