What Happens When You Don't Pay Credit Cards in Ohio?

Defaulting on credit card debt in Ohio may result in late fees, higher interest rates, lower credit report scores and lawsuits. Additionally, over-the-limit charges may apply if your credit card is at or near the limit when a late payment fee hits. Reduce penalties by notifying creditors and explaining the situation before you miss a payment.

Collections

Generally, if you are 30 days late in Ohio or stop paying altogether, the account goes to collections. Debt collectors can call at home or work and contact your friends and family in an attempt to find you. However, debt collectors cannot call you before 8 a.m. or after 9 p.m., talk to anyone else about your debt, lie to you, harass you or call you at work if you make it known that your employer prohibits collection calls. Stop debt collectors from contacting you by telling them in writing that you no longer wish to be contacted about the debt.

Lawsuits

Creditors can sue you for not paying your credit card debt. In Ohio, you have 28 days to answer a lawsuit after receiving a summons. Failure to reply to a lawsuit within the set time frame results in forfeiture of the case. Claiming the debt is invalid is a legitimate defense. If a debt is beyond the Ohio statute of limitations for credit card debt---as of February 2011, six years from the date of last action on the account---creditors cannot sue you to collect.

Garnishment and Bank Levies

With wage garnishment, your employer may withhold up to 25 percent of your paycheck to settle a debt. Bank levies involve using any funds over the first $400 in an account to pay creditors. Social Security and disability benefits, some retirement accounts, unemployment funds and most other types of federal or state benefits are exempt from garnishment. Contact the issuing court, your bank and the creditor to claim a garnishment exemption.

Credit Scores

Delinquent credit card information will end up on your credit report. Default payments lower your credit score, resulting in higher interest rates from other lenders and hindering future credit options. Negative information remains on the report for up to seven years after the initial reporting. Paying the debt or closing the account does not erase accurate negative information.