Is there a specific guideline or general number?...

[ChrisInFlorida]

I was having a conversation with a friend the other evening about creditors and their collection practices. During this conversation he asked me if I had any idea what amount of money you would need to owe a major credit card company before they will actually sue to collect. I have done quite a bit of research about bank's practices but I've never heard of a general amount mentioned. Is there a specific guideline they go by?

Chris

[HHM]

I imagine each bank has its own guidelines based on the type of credit portfolio it possesses. There really isn't a general guideline and the choice to sue is based more on the customer as a suit candidate than an amount of money. Remember, in most states, when a creditor sues, the costs of suit and attorney's fees get added to the judgment.

Choice to sue depends on the likelyhood of being able to satisfy the judgment, so if the customer has identifiable assets (i.e. house) or a steady job, that person is likely to get sued regardles of the amount owed. Also, it may not be the original creditor that sues, a small account may get sold to a debt purchaser as part of a larger portfolio and that debt purchaser may sue (based on identifiable assets and employment of the debtor).