Credit Card Liens Law and Legal Definition

Credit card lien refers to the right of lien enjoyed by a card company on a defaulter debtor’s property after obtaining judgment against that debtor. On default from the customer, a credit card company is entitled to initiate legal action against the defaulter. This turns an unsecured loan into a secured loan. The lien must be paid off from the proceeds of the sale when the debtor decides to sell the home or refinance the balance.