Avoiding A Credit Card Lawsuit: Negotiating With A Tough Creditor

July 10, 2012 by  Filed under: Credit 

With the looming economy, inflation and hundreds of people dealing with various financial problems, it’s not surprising that many are also facing credit card lawsuit for unpaid debt. The good news is, there is a way to avoid such problems, like meeting up with your creditor and striking a deal. However, these agreements do not always result in favorable repayment option for debtors.

If you want to negotiate with your creditor and avoid a potential credit card lawsuit, you need to contact your creditor immediately; this can be done by phoning them as personal meet ups might be difficult to pull. Note that it’s much easier to negotiate with the original creditor rather than just the collection agency who purchased your account from your old card company. Usually, creditors or collection agents would notify you whether or not they will file a credit card lawsuit against you. Whichever the case, negotiating a deal would most likely require you to pay a onetime lump sum.

The deal will boil down to the payment amount. Of course, the creditor has a drawn out amount they expect to be paid. If they disagree with your offer, you can go ahead and offer a payment plan that fits your budget. Whatever the agreed amount is, make sure you can afford to pay it each month. To avoid a potential credit card lawsuit, you have to be proactive and contact your creditor as soon as you can. This not only helps protect your creditor score from being impacted negatively, and prevents the creditor from selling your account to a collection agency.

It helps to be diligent in terms of responding to your creditor’s proposed payments. When it comes to card debts, repayment is always better than an uncollected account. Some creditors might try to modify the offer while others will refuse to accept the payment plan you propose. If the creditor refused your offer, ask them what acceptable amount they can accept. If say, both parties has agreed on a payment plan, always put everything in writing. Additionally, a receipt will be given, stating the debt has already been paid in full.

Putting everything in writing is important because you cannot count on your creditor to keep their word every time! A written payment is a viable proof of your good faith to the judge, in case, things turned for the worst and your creditor filed a credit card lawsuit in the end.

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