Fear of ending up in jail for due debts is the main problem that many people who have credit cards experience. The reoccurring calls of creditors make it even worse, and people threaten their security and freedom. Although delving deep into the matter of legalities and rights, the fear becomes a little less.
Various issues can occur due to unpaid debts on your credit card, but jail is not the consequence for sure. The credit card companies have all the rights to sue you which can lead to serious legal issues. So, if you are wondering, Can a credit card company sue you? The answer is Yes.
Misleading Calls for Jail Threat
Creditors and debt collectors sometimes cross the line in the journey of recovering their money. They employ different tactics to threaten the borrower. Such threat calls violate the FDCPA law which helps the borrowers to stay protected from abusive debt collection ways. You must understand that these threatening calls are not more than tactics of the creditors for faster recovery.
The Reality of “Can a Credit Card Company Sue You.”
Credit card companies hold the right to sue you for unpaid bills. They can approach the civil courts, which look for financial issues. If the creditor wins the case, the court can order your wage garnishment, property, or other ways of debt recovery. If you fail to fulfill the orders of the court, then they may take other actions against you such as jail.
Navigating Lawsuits and Judgments
1. Lawsuit Response
Receiving the notice from court can be daunting but it is the time that you must take action regarding your due repayment. You can consult an advocate for more clarity and action that you must take. You can often win the case based on the debt collector company’s limitations and inaccurate claims by the creditors.
2. Judgment Consequences
If the judgment comes against you, the company will follow more strict tactics for debt collection. But there is no chance for jail. In response to the judgment, you can negotiate the payment plans, challenge the decision, or find out more options for debt repayment. You must try not to escalate the issue.
Debunk the Jail Myth
Firstly, you need to determine the difference between the debts that can lead to jail and those that cannot. The credit card debt is an unsecured debt that comes under the civil category. If you fail to repay it, it doesn’t count as a criminal offense. However, fraud, such as using credit cards for not paying back, is a criminal act.
1. The Difference Between Civil and Criminal Debt
It’s vital to distinguish between debts that can lead to criminal charges and those that cannot. Credit card debt, a form of unsecured debt, falls into the civil category. Failure to pay is not a criminal act. Conversely, fraud—such as deliberately using credit with no intention to pay—can have criminal implications.
However, these cases are distinctly different from simply accruing debt that you’re unable to repay.
2. Consumer Protections and Rights
FDCPA protects the customers against the unfair recovery practices of the creditors. If you are familiar with this act, it can help you to stand against the threatening tactics of credit card companies.
What Steps to Take if You Are Stuck in Debt?
If you are stuck in the web of debt, you can take these steps:
1. Take Legal Advice
If the credit card company has sued you, you can get legal help from an advocate to find ways to escape it. Professional people can guide you regarding the response to a lawsuit, negotiating with the company, and protecting your rights.
2. Find More Options for Debt Repayment.
To manage and overcome the debt burden, you can look for options such as debt settlement, consolidation, and legal counseling. You can come out of the debt web using these strategies without fear of further exaggerating issues.
Also Read: Best Random Credit Card Generator With Money that Works
Conclusion
The fear of jailing for not paying the debt is the tactic used by the companies, but it is entirely misleading. However, leaving the credit card bills unpaid can lead to other legal issues, such as the company suing you. If you understand your rights and respond to the legal call wisely, you can escape debt without fearing jail. In the financial path, your knowledge is vital, helping you come out of the darkness.
