What amount does a collection agency take to court?

[SimpleMind]

Hello.. I am writing a report. Is there a specific amount of money collection agencies decide it is worth taking legal action? I was told the general rule of thumb is $1,500.00..
But I also read about stories of companies like American Express placing judgments for $500 to $600. Dell suing for small amounts of cash as well. I suppose it depends on each individuial creditor, or collection agency.

I would guess if you default on a $400.00 revolving credit bill.. The late fees, interest, and other charges could add up to a decent amount in a short time.

 

[moburkes]

Hello.. I am writing a report. Is there a specific amount of money collection agencies decide it is worth taking legal action? I was told the general rule of thumb is $1,500.00..
But I also read about stories of companies like American Express placing judgments for $500 to $600. Dell suing for small amounts of cash as well. I suppose it depends on each individuial creditor, or collection agency.

I would guess if you default on a $400.00 revolving credit bill.. The late fees, interest, and other charges could add up to a decent amount in a short time.

Yep. The amount that, for them, it makes sense to pursue in a court of law. It will be different for each agency.