Suits Filed Over Credit Card Defaults

Monday, March 5th, 2012
Updated: March 5th, 2012
The content is accurate at the time of publication and is subject to change.

If you have a credit card in your wallet, you have to be on double alert with the payment of your bills. Otherwise, you can get into some serious trouble if you fall behind on your bill payments. You could be inviting a lawsuit from the lenders as well as collection agencies seeking damages.

In the past, major lenders would think twice before filing a lawsuit and these were relatively rare because lenders only went to court if the debts were in thousands of dollars. However, that is not the case anymore as lenders are going after customers who have poor credit scores. There are instances where lenders are even filing lawsuits for debts that are less than $1,000.

The challenging economy could be the contributing factor.These days, a number of customers are defaulting on their payments and lenders seem to have no choice, but to pursue the matter aggressively.

In some cases, the defendants cannot be located and the courts cannot serve them their notices. But in some cases, the defendants acknowledge their debt and also agree to settle the matter out of court. It has been noticed that the plaintiff generally gets a favorable judgment and wins the case. Under such circumstances, the defendants will have to pay up the entire amount with interest and also have to reimburse all the collection expenses that can run up to $500. The debts are rarely disputed.

A plaintiff may establish lien on the property and get a default judgment in their favor, states Judge John Collins. The plaintiff may also obtain an order by garnishing wages. The credit rating agencies pick up these judgments, which further add to the pressure. Having a judgment against you can have serious consequences, he added.

County court administrator, Phil McCollister also attributed the increase in court cases to the failing economy. The courts are finding it difficult to keep up because there has been a 17% cut in the last 2 years, he added. So, they have to do more work with fewer work forces, but they have some back up in some quarters.

There are efforts now to maintain records by storing everything electronically, so it is easier to access them when needed. At the moment, they are spending a huge amount of time just looking for files. So, this change can be of great help.

This kind of debt is unsecured and makes it easier for the borrower to walk away from it, states Linda Schwichtenberg from West Coast Bank.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

Latest Other Card News

Friday, May 31st, 2019

Priority Pass is a world-known program offering its members access to over 1200 airport VIP lounges with free food, drinks and entertainment in more than 500 cities across 143 countries. The program is available to everyone who’s paid for membership, regardless of a tickets class.

Thursday, March 7th, 2019

A virtual credit card is a unique credit card number that is linked to your main credit card account but is different from the physical card number. The virtual credit card number allows to shop online or over the phone without using your physical credit card. The numbers can usually be used once and expire if not used. The cardholders can also delete the numbers if they want or need to.

Wednesday, September 19th, 2018

Credit scores and credit reports have become an integrate part of our lives and financial health. There are a lot of services that allow to check credit reports online and is one of them. is owned and operated by Experian, one of the three major credit bureaus in the U.S. The service provides […]

Tuesday, February 6th, 2018

If your wallet is bulging with store loyalty cards, there’s good news for you from Samsung Pay. The most widely accepted mobile digital wallet system in the United States is now allowing users to upload their store membership and rewards cards onto their Samsung Galaxy smartphones.

Friday, September 1st, 2017

Identity theft and banking fraud concern more and more Americans, according to a recent FICO survey. And that is not a surprise as credit card fraud continues to grow, especially online fraud.
There is no foolproof way to protect yourself from fraud, but there are a few things you can do. The first and foremost thing you should do is never ever give your credit or debit card information to someone you do not know.

Best Credit Offer
Horizon Gold
Check off the cards you want to compare. Then click the Compare link to go to the comparison table.
Consumer Rating: 4 / 5
Horizon Card Services Horizon Gold Credit Card
Copyright © 2001-2019 All Rights Reserved.

*See the credit card's terms and conditions on the online application page. Note that this website may be compensated by credit card issuers when the visitor applies for a card through the links on this website. We do our best to maintain all information accurate and up to date. However, we do not warrant the credit card information won't change. Click the "Apply Online" button and review the current info on the secure credit card terms page.

Information in these articles is brought to you by Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.

The webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the website are property of their respective owners.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer. Opinions expressed here are the author's alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult a card's issuing bank for terms & conditions. makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that may be compensated by the credit card issuers when the readers apply for a credit card through this site. is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. does not review or list all available financial or credit offers.

Disclosure: Not an access card.

You've successfully subscribed!

Please specify the following:All these fields are optional

Thank you for providing this information! We will make sure our letters are useful for You.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.