How Often Do Credit Card Companies Sue for Non-Payment?

Everyone might face financial problems. It might be instant unemployment, unforeseen accident to yourself or your loved one, unpredictable bills, and a host of other causes that may get you in trouble with credit card companies. 

What if you can’t pay your credit card? Do card issuers automatically prosecute you? Or does failure to pay credit card debt ultimately allow the debt to go away as if it were a bankruptcy state?

From time to time, these problems have come to your mind. This article would address critical concerns related to credit card debt and other relevant topics.

What will credit card companies do to you?


Credit card providers prosecute approximately 15% of collection lawsuits for non-payment. Typically debtor holders have to think about claims only whether their balances are due and paid or default 180 days later. This happens where a credit card issuer cancels a loan and counts it as a deficit for tax purposes.

There are 191 million credit card users in the United States, and 7 in 10 Americans have at least one credit card. Given the number of American credit card users, the primary problem is that credit card companies have outstanding debts.

Would credit card providers automatically track you after skipping payment?

Filing a lawsuit is not what businesses typically do when one or two payments are missed. It only applies interest and administrative costs to meet the expected principal. 

In some cases, litigation is the last resort. In other words, the credit card companies don’t consider it a primary debt collection solution.

Debt Collections precede some litigation as it is the preferred option so that you can recover without getting involved in the costly and frustrating process of law enforcement.

Credit card companies are first and foremost businesses. And you are their customer, and you would like to continue this positive customer partnership for as long as possible. 

You are a goose with diamonds. Your card generates debt and interest income, assumes operating costs and benefits from the operation. Lawsuits are a cost that can only be paid to repay outstanding loans, as it is terrible for the business. Therefore, credit card companies use cost-benefit evaluation to determine if the claim is worth it.

➡LEARN MORE: What to do if you’re a victim of credit card fraud?

Am I free from any punishment?

Credit card companies weigh the size of the loan, repayment, and legal costs when filing an appeal. However, this factor does not grant you free unlocking of your credit card. 

But what will they do with the outstanding debt if the credit card providers are not processed immediately? The following are some of the actions taken by the credit companies before the lawsuit. For more information, see the following sections:

  • Payment requests
  • Impose penalties for late transfers
  • Loss of profit from annual participation
  • Changes in interest rates
  • Inactivate your credit card
  • Exclusion of the privilege of using better credit limits

Judicial interference would be considered primarily when other non-legal activities have been tried and failed. 

However, in certain situations, they are more likely to sell the loan to a debt collection company. When this happens, debt becomes a persistent cause of headaches, and you may even want to carry it until you go to a collection office. 

Collection agencies make money by collecting taxes from you, and they would be very persistent in doing so. So, we would suggest doing a preventive control of your credit card use before it happens.