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I Got a Target Credit Card and Now I’m Being Sued

By on November 29, 2018

Question:

Dear Steve,

A case was filed against me for money lent on contract / stated account. Now pending a hearing.

I saw an advertisement from Target for a record player on sale for $119.00, so I went to Target to buy it. When I saw it and decided to buy it the assisting clerk asked me if I would like to open a Target charge account. I agreed, he asked for my drivers license, he swiped it on a credit card looking machine, he asked me to sign it and told me I had been given a charge account of $300.00, he then wrote my name a number and told me to use it to pay the cashier and I got my record player. Later I paid on it in the first week. Two weeks later, I got an envelope with a Target Red Card. I never got a copy of the agreement, if any, or the contract I signed on the machine’s screen. This may be the contract they claim I breached now.

Antonio

Answer:

Dear Antonio,

As best as I can figure out, you applied for a Target credit card and were approved for a $300 credit limit. You used it to purchase an item that cost $119 and made at least one payment.

Here is a copy of the Target Credit Card Agreement. It may or may not be the same version you agreed to.

It appears you did not make all the payments on the card and have a delinquent balance if they are potentially suing you. Here is what the Target Credit Card Agreement says will happen if you default.

DEFAULT/TERMINATION OF CREDIT PRIVILEGES — Subject to applicable law, you will be in default under this Agreement if you violate any term of this Agreement, fail to make the Minimum Payment Due by the Payment Due Date, or become the subject of bankruptcy or insolvency proceedings. Upon default or death, subject to applicable law, we may, in our sole discretion: (a) reduce your Credit Limit; (b) terminate the Account, at which time the terms of this Agreement will continue until we have been paid in full; (c) require immediate payment of the total balance on your Account including all related fees and charges described in this Agreement; (d) bring a legal action against you to collect money owed to us; (e) terminate any special promotional credit terms; or (f) take any other action permitted by applicable law. If we refer your Account to an attorney for collection, you must pay to us all costs and expenses of collection, including attorneys’ fees, to the extent not prohibited by law. Even if you are not in default, we reserve the right to terminate your privileges to obtain credit on the Account at any time. Upon any termination of this Agreement by you or us, you will continue to be obligated to pay all amounts owing under this Agreement, and to otherwise perform the terms and conditions of this Agreement.”

Can you please post an update in the comments section below to help clarify if they are coming after you even though you paid the entire bill.

If so, that would be a different issue than defaulting on the monthly payment and then finding yourself in collections.

If you did not pay the balance off in full with that first payment you made, you should have received a billing statement in the mail. Target says, “We will send you a billing statement each month that your Account has a balance. Your billing statement will show the amount you owe us, which is called the New Balance, and the smallest amount you have agreed to pay us for that billing period, which is called the Minimum Payment Due. If any portion of the New Balance is delinquent, the statement will show the Amount Past Due. The statement will also tell you the Payment Due Date.”

If you are being sued, the primary issue here is not the agreement but proof you paid the balance in full if that is what you are claiming.

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

2 Comments

  1. Antonio

    November 29, 2018 at 1:44 pm

    Asked question about Target credit card.

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