Credit card lawsuits occur when a credit card company or debt collector sues a borrower for unpaid credit card debt. These lawsuits typically begin after repeated missed payments and failed collection attempts. If the debtor doesn't respond or defend themselves in court, the creditor may win by default and obtain a judgment, which can lead to wage garnishment, bank account levies, or liens on property.

Defendants have the right to dispute the lawsuit, demand proof of the debt, and challenge the collector’s legal standing. In many cases, negotiating a settlement or setting up a payment plan may be possible before or during litigation. Taking legal action seriously and responding promptly is crucial to protect one’s rights and financial future.