What Does a Credit Card Company Do If a Bill Is Not Paid?

Credit card companies have specific policies and procedures for customers whose bills are past due, ranging from late fees to wage garnishment.

Late Fees

The first thing credit card companies will do is apply a late fee to the account. Late fees are levied once per billing cycle.

Limit Freeze

Some credit card companies will freeze the credit limit on your card, and you may be unable to use the card until the past due amount is paid. When this happens, the bill is usually more than 30 days past due.

Payment Options

Credit card companies recognize that unexpected life situations happen and may offer their customers different payment methods to help. Customers may be allowed to pay via phone, Internet or at a physical location near them.

Collection Calls

When accounts reach 60 days past due, card companies will attempt to call you at home, work and at any other number you provided, in an effort to collect the past due amount.

Legal Action

Credit companies can choose to close your account permanently and may begin to take legal action, such as garnishing your wages.