Not So Fancy; Iggy Azalea Named Defendant in a $300k Unpaid Credit Card Lawsuit

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Iggy Azalea - Image via People

For one reason or another, Iggy Azalea isn’t paying her credit card bill. Now don’t get me wrong, everybody gets busy and forgets to pay a bill from time to time.

However, according to documents obtained by TMZ, American Express is suing the Australian-born rapper, born Amethyst Amelia Kelly – for $300,000 worth of debt…Yikes!

The $300,000 debt is $250,000 over the rapper’s preset limit so Amex is coming for their money. It’s no secret that Azalea enjoys the finer things in life.  So, one would assume the “Fancy” rapper has a decent amount of cash set aside. However, if Azalea is broke that wouldn’t be a surprise either.

When an individual becomes seriously delinquent on a debt, and lenders are unable to collect payment through normal channels, they may file a lawsuit against that person in order to recoup the debt. Amex has decided to do exactly that against Azalea.

Nevertheless, under the law Azalea has options. In fact, she may be able to settle her debts and escape the lawsuit even though the lender has already filed a claim in court against her.

Before accepting the lawsuit on its face or acknowledging the debt as hers, she or her attorneys must take the time to examine the debt itself. Lenders make mistakes, and because debt is often bought and sold, it’s not impossible that the amount of debt might be wrong or that she may not be the proper owner at all. In another increasingly common scenario, she could be the victim of identity theft.

Keep in mind that companies only have a certain window of time in which to sue an individual for unpaid debts. They cannot bring a lawsuit against an individual outside of that time frame. Each state’s statute of limitations is different. Most states have a statute of limitations of at least three years if not longer. The lawsuit must be filed before the end of the statute of limitations to be valid. In California, where the suit against Azalea was filed, three years is the statute of limitations.

Because lawsuits can be expensive, most credit card companies and debt collectors are usually willing to settle the debt for a percentage of what is owed. How low they are willing to go depends on several factors, including the age of the debt, or whether the debt was the result of a balance transfer. Azalea’s attorneys will certainly attempt to negotiate for a smaller amount if all else fails.

If Azalea does decide to settle the debt, she can negotiate to pay either a lump sum or start a payment plan. Either way, it is crucial to make sure any settlement agreement is documented and states that the lawsuit will be dismissed and the account will be marked as paid.

Also, keep in mind that these options aren’t just for the rich and famous. A competent attorney will advise you should a credit card company file a lawsuit against the everyday person.  Keep in mind, the average person will also suffer a negative credit score as well.

In the past, Azalea blamed her label Def Jam over the delays of her upcoming album Digital Distortion, which has been “coming soon” for a while now. So maybe Azalea wants to wait for her album to drop before she pays off any big bills.

Amex is suing Azalea for $300,000 plus legal fees, so hopefully her album comes out soon.

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