What is the law on credit card default?

Answer by  Cyndael (338)

They can sue you, it depends on the amount owed on whether it is worth it to them or not. They can repossess anything purchased on the card that isn't paid off, but they don't really do that. Mostly they just totally ruin your credit score.

Answer by  patti (29325)

The law is that the terms of default be spelled out in the credit card agreement. Once payments fall behind, fees can be added and interest can be increased to the maximum allowable rate, as stated in the agreement. Steps can be taken to collect the debt. The debt can be sold to third party collectors.

Answer by  flamiss22 (5081)

When the credit card company is unable to get any money from you as a last resort they may sell the debt to a third party collection agency. The collection agency will act aggresively to try and collect the debt for as long as they see fit. Try and settle.