When people get a new credit card, they often take several factors into consideration. Things like interest rates, perks, credit limits and card acceptance can all play a role in how we choose credit cards. However, there may be one more element consumers will want to consider: how the bank deals with delinquency.
Credit card debt is a pervasive issue for millions of Americans who struggle to pay off balances for any number of reasons. Therefore, it can be helpful to know how banks respond to this situation. For instance, a recent report by ProPublica notes that one company is much more likely to file lawsuits against borrowers: Capital One.
According to the report, which can be read in full here, Capital One has filed far more lawsuits against borrowers than any other credit card company, and for much smaller debts.
There were many limitations to the data collected, but the trend that emerged is that consumers with debt on a Capital One credit card, even if it’s just a few hundred dollars, appear to be at a higher risk of being sued than consumers with debts on other credit cards.
A spokesperson for the company stated firmly that it does not take legal action against borrowers who are working with the company. However, she went on to say, Capital One does not shy away from taking aggressive action when people do not pay.
It is important to note that Capital One has the highest number of subprime borrowers of any lender in the U.S. This combined with the finding that it also files the most lawsuits means that some of the most vulnerable and financially-strapped people can find themselves feeling kicked when they’re already down.
This should remind readers of this blog of how crucial it is to protect yourself when dealing with credit card companies and debt. Banks and other lenders can be relentless in the pursuit of payment and borrowers can be faced not only with a lawsuit but also the possibility of losing their home and other assets.
If you are in this situation, you need to know that you do not have to deal with it alone. A debt relief and bankruptcy lawyer can help you assess your options, defend your rights and make decisions that protect you and your financial future.
By Nowack & Olson, PLLC | Posted on January 6, 2016Tags: credit card debt
