If a credit card company cancels your account, do you need to pay off the balance?
Credit Card
Epik asked:
There is no account to post nonpayments to. The closing of the accounts may have lowered your FICO score, but from there on out it won’t be affected by that particular credit card company.
There is no account to post nonpayments to. The closing of the accounts may have lowered your FICO score, but from there on out it won’t be affected by that particular credit card company.
What can they do to try to get you to pay?
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March 26th, 2009 at 12:03 am
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You need to pay your bills if your name is to be any good.
March 27th, 2009 at 4:32 am
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First it begins with harassing phone calls. Then the calls stop and they file suit in the civil court for payment. The best part of this is you will receive in the mail judgement was made against you and YOU never even received the subpoena to appear in court.
March 30th, 2009 at 2:34 am
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Just because the credit card company closed the account doe’s not mean that you do not still owe the balance.
As far as what they can do, they can sue you and get a judgment then attach bank accounts, garnish wages (if your State allows it) and file liens on any property you may own like cars, boats, land and homes.
April 1st, 2009 at 3:12 am
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Yes. The company will still bill you and you are still required to pay the bill or it will adversely impact your credit and your ability to receive favorable rates when financing an auto or home.
In some cases it may be to your advantage to negotiate a payoff amount less than the actual balance. Always get these agreements in writing.
April 1st, 2009 at 11:18 am
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Of course. And it’s going to continue to be reported as long as it has a balance…
April 3rd, 2009 at 10:50 am
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Unfortunately, you are “Financially Responsible” for credit card debt owed to a financial services company.
You will need to make payments as agreed by the Terms and Conditions of the Credit Card Company.
The CC Company may commence Collection tactics to get the money from you or they may assign your account to a Collection Agency over time?
You don’t want to worsen your FICO or Credit Score by simply NOT paying and walking away as this will have a negative impact for 7-10 years in your Credit Profile and Credit Score.
You should consider a Household Budget for your income and expenses to manage your finances and avoid problems with creditors.
Here’s a good resource:
Check you Credit Bureau Reports for FREE on an annual basis to see what appears on your credit records.
GOOD LUCK!
April 6th, 2009 at 5:10 pm
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yes you still need to pay them , they will sell the account to a collection agency and they will bring action against you….