Michelle Lambright Black, Founder of CreditWriter.com and HerCreditMatters.com, is a leading credit expert and personal finance writer with nearly two decades of experience in the credit industry. She’s an expert on credit reporting, credit scoring.
Michelle Black ContributorMichelle Lambright Black, Founder of CreditWriter.com and HerCreditMatters.com, is a leading credit expert and personal finance writer with nearly two decades of experience in the credit industry. She’s an expert on credit reporting, credit scoring.
Written By Michelle Black ContributorMichelle Lambright Black, Founder of CreditWriter.com and HerCreditMatters.com, is a leading credit expert and personal finance writer with nearly two decades of experience in the credit industry. She’s an expert on credit reporting, credit scoring.
Michelle Black ContributorMichelle Lambright Black, Founder of CreditWriter.com and HerCreditMatters.com, is a leading credit expert and personal finance writer with nearly two decades of experience in the credit industry. She’s an expert on credit reporting, credit scoring.
Contributor Caroline Lupini Managing Editor, Credit Cards & Travel RewardsCaroline Lupini has been traveling the world with the help of credit card rewards since 2011. She has visited over 110 countries and is able to utilize her knowledge of credit cards and to make travel both less expensive and more luxurious. Caroline.
Caroline Lupini Managing Editor, Credit Cards & Travel RewardsCaroline Lupini has been traveling the world with the help of credit card rewards since 2011. She has visited over 110 countries and is able to utilize her knowledge of credit cards and to make travel both less expensive and more luxurious. Caroline.
Caroline Lupini Managing Editor, Credit Cards & Travel RewardsCaroline Lupini has been traveling the world with the help of credit card rewards since 2011. She has visited over 110 countries and is able to utilize her knowledge of credit cards and to make travel both less expensive and more luxurious. Caroline.
Caroline Lupini Managing Editor, Credit Cards & Travel RewardsCaroline Lupini has been traveling the world with the help of credit card rewards since 2011. She has visited over 110 countries and is able to utilize her knowledge of credit cards and to make travel both less expensive and more luxurious. Caroline.
| Managing Editor, Credit Cards & Travel Rewards
Updated: Sep 28, 2023, 12:10pm
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In the U.S., around 23.5% of Americans struggle with debt in collections status according to a study by the Consumer Financial Protection Bureau. So, if you have past-due credit card debt of your own, it might comfort you to know that you’re not alone.
Despite the fact that having debt in collections is somewhat common, it could still trigger unpleasant consequences. If you default on your credit card debt and are unable or unwilling to work out an arrangement with your credit card company, you risk being on the receiving end of a debt collection lawsuit.
Getting sued by a creditor or collection agency can be an unsettling experience, especially if you don’t know what to expect. Yet no matter how overwhelmed you feel, ignoring a courthouse summons is a mistake. Read on to learn how debt collection lawsuits work, and discover the steps you can take if a company sues you for unpaid credit card debt.
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When you don’t keep up with your credit card payments as promised, there are several ways your credit card company can try to compel you to pay. Your card issuer may call you, write you or bring a third party debt collector into the picture.
Once the company has communicated the debt to you (or made an effort to), they are almost certain to report your account as late to the credit reporting agencies—Equifax, TransUnion, and Experian. And if a collection agency is involved, you could wind up with a separate collection account on your credit report as well. Late payments, charge-off status and collection accounts all have the potential to wreak major havoc on your credit score.
Ignoring calls and letters from your credit card company or a collection agency can be tempting. But this response (or, rather, lack of response) could cause the situation to escalate.
At this point, you might start to receive calls from a debt collection law firm that may or may not give you one final chance to pay or settle your credit card debt. And if you don’t work something out that will satisfy the creditor, the attorney may file a lawsuit against you. Around 15% of consumers contacted about a debt in collections are sued in civil court per the CFPB.
Debt collection lawsuits can vary depending on your state of residence. But, in general, you’ll receive a summons after the attorney files a complaint in state civil court to initiate the process of suing you.
The summons you receive should contain important information about your lawsuit such as:
It’s important to point out that you cannot go to jail for not paying your credit card bill. In fact, if a debt collector threatens you with jail time over an unpaid debt, it’s likely violating a federal law known as the Fair Debt Collection Practices Act (FDCPA). However, be aware that you can go to jail for ignoring a court summons.
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