Can Credit Card Companies Go After You If You Leave The Country?
by Mr Credit CardWe just had this email from another reader:
I have several credit cards with balances on them here in the US. I am about to be transfered back to the UK for work (I am from the UK, not a US citizen), and so will not be using my US issued CC’s again. If I do not pay them off, do you know if the companies (visa and mastercard) will try to retrieve the money once they realise I am not intending to repay it? I know if will ding my credit score here in the US, but I don’t care about that.
John Mathews
Answers – John – let’s go over the procedure of what happens when you stop paying your credit card bills.
Disclaimer : This is not legal advice but just our opinions.
John, since you are leaving the country, I doubt that the creditors will come after you. They certainly cannot call you! They won’t be able to track you down. But if you ever get sued, you would need proper legal advice especially if you are out of the country.
But here’s the issue I have with the email you sent us. You did not say anyway that you are in financial trouble. All you said is that you are from the UK and your company has sent you back. So presumably, you have a job. If you have a job, and are financially capable of paying off your credit card bill, then please pay it off. Society runs based on a certain level of trust. If every foreign worker were to leave and just not pay their credit card bills, then credit card issuers will never issuer to them at all? If you are capable of paying off your debt, then please do so. It is the proper thing to do.
If you have lost your job and are relocated back and have financial difficulty, then that is another issuer altogether.
Oh and one more thing: if there is ever a judgement against you, you may have to disclose that if you ever want to work here again.
Here is another email from a reader with a similar situation:
I am from Pakistan, i was working for an insurance company, the company layoff more then 1000+ emp, i am 1 of them, this was last year dec 2008. i am planning to go back to my country, i actually owe more then $30,000, i cannot pay off every thing coz i only have $2500 in my bank, i am really in a very bad status, i have been trying to find a job for past 6 months. i have 2 daughter & 2 sons back home, i am not able to feed them or my self, so i want to go back to my country & try to find some work there. so what can i do about the credit card debt. what happens if i don’t pay? can they hold me in Pakistan… or if i pay very slow with that affect my status. coz $30000 is a lot. please help me to find a way out of this debt.
kevin khan
Answer: Kevin – for your situation, I would consult an immigration attorney. I doubt you will ever be asked to leave this country or have your status affected if you do not pay your credit card bills or even if you file for bankruptcy.
I also doubt if you can ever be arrested in Pakistan if you do not pay your credit card bills here. You won’t get arrested here though you will certainly be harassed by tons of collection agencies!
But look, you have $30,000 in debt and only $2500 in savings. You just cannot afford to pay them. Simple as that. Question for you is do you ever intend to come back here and work? If you do, then you’d better consult your immigration attorney on how your financial situation may impact your ability to get a Visa down the road.
Best of luck to you.
June 11th, 2009 at 07:51
Although you have the same credit beaureas between the UK and the US (i.e. experian etc), credit does not appear to travel with you. I say this as a British expat living in America. I had a great credit rating in the UK, but had to build one once I got to the US. I have read of many people having frustration with this. Theoretically the same should be true in this chaps situation. However, I would also question his ethics, especially as it effects others who live as expats, and perhaps him if he ever decides he wants to work or perhaps even travel in the US again. I wouldn’t want to get off an airplane in the US if I have evaded a debt, you never know what may follow you. (Orange jumpsuit anybody!)
June 15th, 2009 at 18:33
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June 16th, 2009 at 21:26
[...] article discussing Can Credit Card Companies Go After You If You Leave The Country?, including the legal, moral, and practical implications of leaving without [...]
October 5th, 2009 at 06:34
Recently Amex has recently cancelled my business line of credit. I continue to pay the monthly bill even though the business has been sold. I receive income from the sold business with which to pay the bill. I am retired and Amex has increased the interest rate so that instead of 300/month interest, it is now 600. I cannot afford to pay this. I have tried to discuss this with them to no avail. Can they pursue me in Mexico? This is not a decision I take lightly, but I don’t have the extra money. I understand that the interest rate was variable, but I can’t afford it. I can continue to pay, but it must be at the old rate and they say NO. I really do believe that credit card companies are creating many of the nonpayment issues by raising the rates arbitrarily.
July 26th, 2010 at 12:33
hi, I have similar problem with john.. im not a us citizen and worked in the us for a couple of years,,, had a credit card debt of about $500… (i know its tiny but it just bothers me) and i left the country coz my visa had expired at that time (about 3 years go)..
but the thing is this,,, my colleague has juz recently opened a business in chicago and ask me to help him out…
the question is,,, what’s gonna happen if i were to apply for the visa,, and if i ever got one,,, will they stop me in the airport’s immigration and put me in jail..?
thanks~~
August 18th, 2010 at 20:22
dear sir hi and pls if u can help with my situation i lived in saud arabia and suddenly my saudi sponser did not pay us for a year and i was using my gredit cards there and then i could not pay them when i returned to lebanon so what could happen thank you