Creditors taking to the court

After signing the contract, if you fall behind in your payments that you agreed with the creditors, they might take you to the court by issuing a County Court Claim form. This can be possible even if you make the reduced payment. Creditors have the rights to include the overall court costs in your bills.

Before taking any legal action, the creditor must formally inform you by sending you a default notice of being behind in payments.

Yes they can. Usually theres a process that they go through first. You fall behind in your payments, they do what they can to make you catch yourself up. They start sending letters and calling your home. Usually after not receiving a payment in 90 days (sometimes longer), they will send you a letter letting you know that unless you catch payment up, they will do a 'charge off' on you. If you do nothing, they do the 'charge off' and send it straight to collections. You will start getting harrassed by telephone calls from collection agencies trying to force you to pay. Usually if you ignore them and they don't have any luck at collecting anything out of you, they will send the account back over to the original creditor. Who then decides whether he wants to take you to court over it or not. Sometimes when it goes back to the original creditor, they just turn right around and send it back out again to another collection agency, in hopes that they can collect the debt. I hope I have explained this to where you can understand it. I have been through this myself, is how I know. Shirley