If you have a checking account with a negative 500.00 balance for a long period of time can your bank sue you even if your making fifty dollar payments a month to get it slowly paid back?

Answer 1

They can't sue you if the $50 a month payment arrangement is something you both agreed on (and if it is, you should have it in writing or at least a contact name and number). If, however, you're delinquent and the bank wants its money, they have the right to sue. If you have no formal payment arrangement, call the bank, let them know you're doing your best to honor the debt and see if they'll set up a payment arrangement with you. In the end, the bank just wants its money; it's better for them to work with you rather than try to collect on what you don't have. When you sign up at a bank, you sign what's termed a depositor's agreement. That agreement is a contract. To the extent you break any term of that agreement, the bank has a cause of action and they can file suit. However, in reality, I'd be surprised if a legitimate financial institution would go that far for $500. You are likely to be contacted by a bank employee or local law firm threatening such action to encourage you to pay them. You might also be on the hook for additional fees, so it is best to pay it off as quickly as possible, even if you have to use a credit card with a high interest rate. Then you could pay the credit card at a more palatable pace.