Debt is an issue that plagues families all across Fort Lauderdale, but too many people make the mistake of thinking that debt is only a problem if it is completely unmanageable and adding up to be more than a person could ever earn. However, even small amounts of debt can lead to big headaches for consumers.
For instance, if you have unpaid credit card debt, your credit card company may decide to file a lawsuit against you, even if the unpaid balance is relatively low. One company in particular has a history of taking legal action against customers who owe less than $1,500.
It was recently reported by ProPublica that Capital One has filed more collection lawsuits against customers than any other bank based on analysis of data from 11 state courts.
The report estimates that Capital One has filed more than 500,000 lawsuits per year across the U.S., which is far more than any other company. In fact, roughly 40 percent of all lawsuits filed by major banks in Florida in 2014 were filed by Capital One.
Companies like Capital One often attract consumers who have bad or no credit, as they are more likely to give loans to these subprime borrowers. However, the deck is stacked against these borrowers: They may receive a loan without being able to repay it in accordance with the bank’s terms. Almost inevitably, many people fall behind and ultimately stop making payments.
The people in this upsetting situation are reportedly the very same people who are then named in lawsuits filed by Capital One. Reports indicate that the typical debt amounts involved in these suits come in at around $1,500, which is roughly three times lower than the typical debts involved in suits filed by other card companies.
What we hope readers take away from this post is the fact that unpaid credit card debt can and does lead to serious problems for consumers. Rather than ignore this fact or wait until debt truly gets out of control, it can be wise to instead discuss your situation with an attorney who can help you deal with or avoid issues stemming from debt.