What will happen if you don’t pay your credit card debts? These and a lot of other questions about credit cards have been answered below, courtesy of a credit card officer which I had the opportunity to interview.Due to the sensitivity of the topic, the credit card officer, who currently works in one of the largest banks in the country, requested me to make his/her identity anonymous.
Lastly, please be guided that the answers given in this article is NOT intended to replace the advice of your financial adviser or legal council.
And with that disclaimer said, let’s now go to the credit card questions. When you default on your payment, the bank will flag you as a delinquent card member. If you continue your non-payment, the calls will be more frequent until you reach a pre-determined number of missed payments.
After which the bank will dismiss your case and turn your account over to a collection agency. They are a third-party business who buys the delinquent accounts.
The collection agency will now take over the responsibility of convincing you to pay your credit card debt.
Whatever they collect from you becomes their profit. The costs (legal and otherwise) that will incur if the bank continues to pursue the delinquent account can be expensive.
You said collection agencies BUY the delinquent accounts? Asides, it’s not worth their time anymore – that’s a simple way to explain it.
Furthermore, the bank cannot just freeze and take the money in your savings account to pay for those debts.
They would need to have a court judgment against you to make it legal for them to do that.
And that will again, cost them money and can take a long time.
So what happens when your account is turned over to a collection agency? The collection agency will do their best to convince you to pay because that’s how they will make money.
I know there are a lot of horror stories when it comes to credit card debt collection.