Why Creditors Press Charges Against Debtors

It’s natural for credit card companies, or any other credit companies for that matter, to press charges against delinquent debtors who no longer pay the minimum payments of overdue balances. There are many factors that resulted in even more aggressive collection methods many creditors use in order to get their money; one of the most obvious is the failing economy. The rather unstable economy meant banks and credit card companies need get the most out of delinquent debtors, which is why they tend to scare them off into paying by filing credit card lawsuits.

In most cases, credit card lawsuits are filed through various law companies that take in high volume cases so if you served with a summons, you’re probably one of the hundreds of debtors who received the same thing and the summons are usually delivered and not mailed. The Summons can either be given to you in person or it is left at your front door.

Why Do Credit Card Companies Sue?

Despite the increasing number of delinquent debtors facing credit card lawsuits in the country, not all creditors will readily pursue legal action because many value their customers more, despite the unpaid debts. So if you suddenly received a summons for credit card debt, it’s usually after a creditor has contemplated all possible efforts to get a hold of delinquent debtors.

Here are the factors many card companies consider before filing a credit card lawsuit:

1) Debt amount

2) Is there a co-signer responsible for the overdue account

3) Debtor’s employment (possible candidate for wage garnishment)

4) A debtor’s mortgage records

5) Debtor’s age/disability (if any)

The fact is, credit card lawsuits are filed because someone has to be responsible for paying the debt. If say, you got enough money for everyday expenses and more, and yet, you are continuously dodging paying even minimum credit card debt payment, then you are a perfect candidate for collection or a credit card lawsuit.

To avoid any sort of trouble with your creditor, diplomacy is still the best way to resolve such problems. Make sure you work with your creditor in order to come up with a great payment scheme that is favorable to both parties. The fact is, many creditors hate pressing charges as much as debtors hate receiving summons for credit card debt. If you can talk your way out of a credit card lawsuit, you will be saving yourself a lot of time and money. So open the lines of communication with your debtor and make an effort to settle the dispute out of court.