Financial Advice: New rules for credit card companies feature consumer protections Cape Fear Business News
As if home foreclosures, a rising unemployment rate and plummeting retirement savings aren’t enough to give us heartburn, the economic recession has pushed many Americans deeper into credit card debt. Though most of the blame lies with individual consumers–after all, no one forced us into an overspending frenzy; we did it ourselves—certain dubious practices by credit card companies have exacerbated the problem and, as a result, prompted legislative action by Congress.CARD Act takes aim at deceptive practices
On May 22, 2009, President Obama signed the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009. The legislation is intended to eliminate excessive fees, penalties and predatory lending practices.
Fairness in fees
In the past, creditors reserved the freedom to shorten payment cycles at their discretion, which could result in late payments and stiff late fees for consumers. The CARD Act requires a monthly payment cycle of at least 21 days. It also bans the practice of calculating interest charges on a previous month’s higher balance, requires companies to apply payments to higher interest balances first, and minimizes over-limit fees by requiring that consumers be notified before being allowed to go over their credit limit and trigger costly over-limit fees.
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BBC news broadcasting. Due to flawed credit agreements and laws governing the consumer credit act 1074 thousands are now stopping payments on ...
Where can I get free legal advice regarding credit card debt?
I'm searching for a web site or phone number to get free legal advice for credit card debt. I need a place that will give me an immediate answer. Thanks for your help.
In most areas, attorneys will give you a free consultation. As this is a credit card debt, you may want to look for someone who does collection work for companies, as they are more experienced in debt law. A lot of "general practice" lawyers have not impressed me on their knowledge.
Can you go to prison for credit card debt?
My fiance is struggling with credit card debt and can't do anything to pay it off. He keeps telling me they can't get money from someone who has none. Anyways someone made a phone call to him last night and said "if you do not call me back by 9 pm tonight I will take every legal action possible against you". Of course he called his family to ask for advice and then they said and have been saying that it's just a "scare tactic"... unfortunatly Im not sure anymore.
Credit Card Money is fully unsecured and generally the banks try to get back the money by employing hard core people who collects the money on commission basis and are capable of troubling you at any time. It is very rare that Bank goes to the court and put people behind the bar. It is advisable to get the interest waived off and clear the account in due course if you have defaulted and re-start the credit card. If you are a defaulter then by this time your card must have been blocked and you are unable to use it.
Some barbaric countries across the world may send their citizens to jail for debt.. but not here in the USA. The penatly you suffer is bad credit. The only way you could serve any jail time is if you were trying to defraud credit card companies somehow. Simple debt is not a criminal offense..
as long as theres no fraud involved.
hope it gets sorted out!!!
Even though the collection agency is probably well within their rights to file suit, they cannot 'scare' him into paying by telling him they will, unless they fully intend to do so.
That is a violation of the Fair Debt Collection Practices Act and the agency can be sued and fined. However, the FDCPA doesn't apply to the original creditor.
Depending on how large his debt is, maybe he should ask the creditors for in-house programs that could help, he could get help from a credit counseling agency or as a last resort, bankruptcy.
Not sure why everyone who said no got a thumb down by someone, so I gave everyone a thumb up :)
I'm unemployed and owe $10,000 credit card debt. If I gain employment will judgments / wage garnishments come?
The $10,000 debt is on one credit card (unsecured). I live in Michigan where garnishment of wages is legal. If I quit my self-employed job and get a "normal" job, will the creditors likely find out, get a judgement against me, and start to garnish my wages?
Anyone with legal training or personal experience with a similar situation? Thanks for any advice.
They can't garnish your wages if they don't know where you work.. Never give them your employer information. Don't apply for any loans because on your application you would have to list your employer and if they approve your loan or deny it they will still let the credit bureaus know where you work and thats how collection agencies find out where you work. If you ever pay a collection agency pay by money orders and never let them know where you bank.. Your employer and bank account is an asset for them to go legal on you.. No assets they probably will write the debt off... I use to work for collection agencies for over 5 years so I know all of this stuff.. If you do contact them to work out a payment arrangement then call them from a pay phone, never give them your employement information and tell them you don't have a checking account and send money orders only..good luck
If the creditor doesn't go after a garnishment, they will likley sell your debt to collection agencies who will haunt you for years.
Your best bet is to contact the companies you owe and try to work out some type of settlement.
Can a lawyer increase the amount on a credit card debt summons?
I received a summons to court on June 18th for a deliquent credit card debt in the amount of $2800+. I have called the law firm I am dealing with and asked them what amount I could settle with them out of court. The first call, I was told $2900+. I called again, and now the law firm wants $3200+??? Can they legally do that? I think the collection agency only wanted about $600 after subtracting late fees and interest charges. I tried to file bankruptcy a little over 2 years ago, but the pro bono attorney at Legal Aid told me just to pay my necessary bills and forget about my credit cards if I didn't have the money, which I did!!! I am on SS Disability, so I know they can't touch that. But I do own a mobile home that they could put a lien on. And I guess they could take my inoperable Mustang, but would have to leave me with my van for transportation, I think??? Any advice?
I've cut back to the "basics" over the past 8 years. Pretty soon, I'm going to have to put my house up for sale or foreclose and live in my van!!! Even a lot of the food pantries don't have any food to give out! I only get $10/month in food stamps! I was just diagnosed with diabetes and chronic kidney disease, and my doctor told me to cut out rice, potatoes, bread, sugars, eat low-fat and low-cholesterol foods, and eat a low protein diet. That eliminates a lot of the cheaper items that food pantries usually have.
Payment plan? If you don't have the money, how do you make a payment plan? They wanted $200+/month, and I am barely surviving as is!
You "need" to file an answer to the summons so they do not get an automatic default judgment against you.
You are correct that they cannot garnish SSDI. They also cannot seize your assets such as your home or car. They may be able to place liens on your home, or car, and get paid if you sell while the judgment is still active.
I don't know what state you lived in when you defaulted, but going by the two states listed in your profile - both states have a 3 year collecting SOL.
If you defaulted 3+ years ago then you need to include an affirmative defense of SOL in with your answer.
The state you listed that you are living in now also has a borrowing statute, where if you had lived in a state with a shorter SOL when you defaulted, then you are past the SOL in the state you say you are living in now.
Without knowing for sure which state you defaulted in and what state you are living in, it makes it a bit difficult to post the states statutes for you but I've referenced the TILA below:
The Federal Law - TILA (Truth In Lending Act) places credit cards as open accounts. (note § 101, § 102 and § 103)
http://www.fdic.gov/regulations/laws/rules/6500-200.html
TILA open account caselaw (HOUSEHOLD CREDIT SERVICES, INC. V. PFENNIG):
http://www.law.cornell.edu/supct/html/02-857.ZO.html
You might click on the last link I have listed in my profile to a free credit discussion board and do some reading or post your question in the Credit Forum. It's a totally free site to read, use the info posted on it and to ask questions.
Sit on answers :) we'll be here :)
I didn't realise how extreme your situation was, i simply thought this was a case of a bad credit card debt, but it seems like you've been hit with an illness that has financially crippled you and left you in this state. It's an absolutely appaling situation mate.
I'm in australia and you'd never be in this position here with public healthcare and a decent welfare system (foodstamps have been unheard of since WW2)- theres no way in the world you'd be living in a mobile home. I sincerely wish i was more familiar with the american legal system, but unfortunately i have no advice. I'd suggest reposing the question a few times and see if you can get a lawyer on Answers to enlighten you a bit as to what you can do in your situation- i know you are by no means alone in your situation in the states.
For starters, what If they are demanding $3200 they aren't settling, they are simply demanding the whole thing to keep it out of court. Big deal!
Start by sending this guy a demand to validate the debt, and explain exactly what you owe and how they arrived at that amount.
I recently helped someone with a $1000 debt that suddenly turned into a $11,800 debt. They were trying to charge this as collection fees and attorney/court costs. He wouldn't validate it, and sued this guy. In court, we filed for disclosure and FDCA violations. The idiot attorney didn't have any excuse for the huge attorney fees, so those got excused. He hit them with penalties and by the time it was over, they owed him $2500.
Don't hold your breath thinking you will get this sort of break..but you do need to get this validated.
Then remind the attorney that you have no income, barely any property, and they can either take $600 or nothing at all.
if you are not legally separated would credit card debt be considered marital property also? 2 yrs apart?
2 years apart-no support at all from my husband, I work a part-time job because of Fibromyalgia* Husband has taken me off our insurance*I need legal advice can not afford it*
if you are poor enough (under about 20k/year for a single person) you may be able to get free advice from legal aid...
if the card is only in one name--than it might not be marital property-laws vary by state and this is a tricky question..
for instance in some states--if a house is only in 1 spouses name--in the event of divorce--the one who is on the deed has more legal pull in ownership....
Credit Card Debt: Seniors or lawyers, will you advise me?
Just got collection letter from Ken Hughes of Merchants' Credit Guide Co. Welcome all info about this outfit. Bad rep all over web.
Have you been sued by a collection agency? What did you do? How long from first collection letter to court date?.Were you represented?
How often do collection agencies sue low-income folks with no assets e.g. no home, old car? Seems like it wouldn't pay. Have you known it to happen?
Don't want to spend the rest of my life hearing from collection agencies. These guys sell debts to one another for pennies. I could be hassled for years. Some lawyers say to ignore it because I don't have anything. It's one thing to get a judgment, another to collect.
I just want peace of mind. I'm 69 with heart trouble and high blood pressure.I'm judgment proof but not stress proof.
I welcome mature advice. Lowest cost bankruptcy I can find is $1200. Legal aid won't do one.Should I do a bankruptcy just for the peace of mind?
Stay away from pre-paid legal plans - they are multi level marketing and nothing more.
You can file for bankruptcy without a lawyer. At your age, I think you don't care about your credit rating. Just make a list of debts and ask the court to waive the filing fee due to your low income (or lack of income). You do not have to sue any collection agencies or anything like that. When your bankruptcy is discharged - you will never hear from any collection agency. If any collection agency contacts you - you can have the court take legal action.
If you have millions stashed away somewhere, now would be a good time to tell the bankruptcy trustee who will oversee your case. Sounds like you don't - but be prepared.
You have to attend credit counseling before filing for bankruptcy and before you receive discharge. You receive certificates that are presented to the court.
Visit this site for additional info and good luck:
http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter7.html
Can a debt be reported twice to the credit bureau?
Once by the original creditor and then by the collection company?....keep one thing in mind that the statue of limitation is 3 years on credit card collection(Alabama) and the original debt is in default since 2001.
I think it is not legal becuase If I owe $$ to Credit card and they sell their account to collection agency, which later sells it to another collection agency, how this second collection agency report that very same debt to credit bureau, when it is already been reported once?
Please advice with web link, phone # where I can ask to get this concern answered....I already check FTC.gov but could not find answer to this specific question.
If you've not acutally paid the debt or had it discharged through a bankruptcy order, then it might be possible for it to continue to reappear if the account has been sold. To get the final answer on the matter, contact the credit bureau (Trans America, Experian or Equifax) that's showing the debt and dispute it. When you dispute something on your credit report, the bureau showing the charge must contact the company that reported it and obtain supporting information. The credit bureau will then give you information based on the applicable law to indicate whether the charge continues to be valid or if it should be removed. If it should be removed, then they will do so. If not, you'll have to actually clear it before it drops off. The websites for the credit bureaus are www.experian.com, www.equifax.com and www.transamerica.com.
Credit card company sent letter of legal action. I had 20 days to respond..1 day left!?
I received a summons to notify me of legal action. A credit card company is trying to collect $1500 on a debt that I do not remember having. They state the bill is from Dec 2004. I assume this is the date of deliquency. How do I respond to this notice of legal action? It says I have 20 days to respond or I may lose judgement by default. Whether I owe this or not, (which I dont believe I do), I am positive I did not owe $1500. When my home burnt down in Oct of 2004 I paid off all my bills including my credit cards (2 total) when I received an insurance check a few months later. Maybe this one slipped through the cracks, but I have no record of this card. Any advice or suggestions as to how I should respond to this?
I apprciate the responses....The court house did not have any papers on this. Unbelievable! I am supposed to write up a response and mail one to their lawyer abnd one to the judge.
BJ ---- BTW, I did not have years to handle this..I have had approx 2 weeks. I do not owe this amount if any at all.
No, no, no! Don't waste any time calling the credit card company. If you don't answer the complaint by filing an answer in court on time, you may have a default judgment entered against you.
I'm guessing this was filed in small claims court near you? If so, get the forms you need to answer it from the court clerk there. Go there right now, today. Get the forms, fill them out and file them with the court clerk. Today.
A copy of your answer will need to be mailed to the one suing you. The address should be on the forms you received.
After you file the answer, you can contact the credit card company and demand proof of the debt. Be sure to ask for a copy of the credit card application. You may be the victim of identity theft.
There are court procedures to get them to give you this information. Generally it's called "discovery". When you go to the court to file your answer, ask the clerk for any forms you can use to send to the crediit card company to get the information.
Go, now.
Sued by credit card company?
I posted another questions earlier regarding the fact that I am being sued by a credit card company. I am enrolled with a debt settlement program, but don't have enough money saved in the program to settle with the credit card company. I was advised to respond to the legal papers and then appear in court. I was also told that the credit card company will win the judgment. Now I am wondering, what will happen next? When I go to court, what will happen? When the credit card company wins, what will happen? I don't own a home and don't have any money saved up. Should I continue with the debt settlement company to try to settle some of my other credit card debts, or will the end up suing me too? How long will the legal process take? Any information and/or advice would be greatly appreciated!
My friend went through a similar situation a few months ago. She was working with a lawyer and making payments to the lawyer monthly. The lawyer was working out a settlement deal with the card companies. One of the card companies sent her to court before the settlement could be negotiated. She appeared in court and she said it took all of 5 minutes. The judge ruled in favor of the credit card company and then set her up on a payment plan. The interest stopped immediately. The judge settled her debt of $9,000 for $4,500. So now she pays back $4,500. She owns a home though, and has a lien on her house until that $4,500 is paid back and it shows as a judgment on her credit report. For you, the mark will be on your credit report and you'll have to make a payment each month. Her monthly payment can be as low as $1.00 as long as she submits a payment each month.
As far as continuing with the settlement program, that is up to you. She is still with them and they have already settled 2 of her debts. It's a risk you will have to take either way.
Everything will work out in court though. Just be sure whatever the orders are by the court, you follow them. Good luck and Happy New Year!
Being sued by credit card company while enrolled in debt settlement program?
I enrolled with a debt settlement company about 8 months ago and I am now being sued by one of the credit card companies. I forwarded the information to the debt settlement company and they are going to send me response information, but I am very worried about the whole situation. I do not have enough money accumulated with the settlement company to settle with the credit card company and don't know what my best course of action is. I am worried that the debt settlement company does not have my best interests in mind and want to protect myself, but I don't know what my best options are... They are suing me for about 20k and I would like to avoid any big legal issues, but cannot make a large settlement payment now. I am wondering what will happen next and what are the best and worst case scenarios? I really want to take care of my debt, but need time to do so. I am a single mother and don't own a home. I would like to avoid any wage garnishments, etc... Any advice would be greatly appreciated!
I was curious about your situation, so I started doing some research. From what I've found, the majority of debt settlement companies are dangerous to you.
Debt settlement companies have their set up and admin fees. They'll contact your creditors to try to settle your debt for lower (the creditors don't have to accept). If the creditors accept, they will want the payment made in full.
When you make your payment to the debt settlement company, the first few payments go to the debt settlement company's admin fees. It may take a few months for the admin fees to be paid in full (while creditors are wondering where their money is). Once the admin fees are paid, they will put your monthly payment fees into a trust account. They will not pay your creditors until you have accumulated enough to pay off the debt in full (creditors still wonder where their money is). Eventually, the creditor will sue you for nonpayment.
The debt settlement company will not send out "cease and desist" letters until their admin fee is paid, and some creditors will be pissed when they find out that you're working with a debt settlement company.
Remember, when dealing with a debt settlement company, you still own the debt (not the company). Basically you're hiring someone to act as a middleman for you, but if they fall through, you're at fault.
Your best bet would be to contact the credit card company to explain your use of the debt settlement company. I don't know if they'd drop the lawsuit (since they have most likely hired a lawyer for the case), but at least now they'll know why they haven't received any payments.
An advice for the future would be to communicate with your lenders directly. Lenders are always open to working something out. After all, they would rather get some of their money than for you to stop paying them (and thus making them hire a lawyer).
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