Countering a Credit Card Lawsuit

Receiving a summons for long forgotten credit card debt causes a great deal of concern and anxiety for many delinquent debtors. The good news is, it’s possible to defend yourself against debt claims even without hiring an attorney. You need to focus on attending all court dates, when requested. Missing just a single date will result in your creditor winning the case by default. This could lead to wage garnishment, property lien or worse, seizing your assets. Below is a step by step instruction on how you can counter a credit card lawsuit.

Step 1: Gathering all documents relating to the debt you are being sued for as well as other information that could help give you leverage against the credit card lawsuit, including agreements, receipts, etc.

Step 2: Draft an answer to the court summons within the given time frame. Usually, defendants (that’s you) are only given 20 days to file an answer to the summons. There are cases wherein the defendant is instructed to visit the office stated on the summons to file the answer. If such is the case, make sure you are within the imposed filing period and bring any necessary documents with you.

Step 3: Start familiarizing yourself with local court laws, federal laws and state laws regarding credit card debt and credit card lawsuit. Certain laws are in place to protect consumer rights against abusive debt collectors, like the Fair Debt Collection Practices Act as well as the Fair Credit Reporting Act. If you feel that you have been victimized by abusive debt collector, bring a documentation of such instances, provide proof of your claim and you just might get the credit card lawsuit dismissed and collect a fine for damages reward.

Step 4: To assist you in building your defense against the credit card lawsuit, consider phoning a debt relief attorney to assist you during the litigation. Although it’s not necessary to hire an attorney having someone who has the legal expertise on your side will dramatically increase your chances of dismissing the credit card lawsuit.

Step 5: Appear in court on the right date. Showing up in court also increases the chances of getting the lawsuit dismissed. The fact is, most debt collectors rely on debtors not showing up in court to win the lawsuit. They are likely to stop pressing charges on debtors who are willing to defend themselves in court.

Step 6: Request that the plaintiff produce documented evidence proving that you owe them money. If they come unprepared, the case is likely to be dismissed and your debt written off the books. If the plaintiff represents a debt collection agency, ask evidence that their company is licensed to collect debts in the state that the credit card lawsuit is being tried.

Step 7: If the plaintiff chose initiate a debt settlement, be honest about your financial situation and propose a sound payment plan.

What To Do When Negotiating Settlement For Debts

Working out a settlement deal with a creditor or a debt collection might sound intimidating but it's actually easy when you know what to expect. Apart from getting a reasonable amount to repay the debt, you can also minimize the damage the debt will cause to your credit report. The good news is, a large majority of collection companies and creditors are willing to take less than the original amount of money owed.

Debtors can either shoot for an installment basis of repayment or pay a lump sum to get rid of the debt completely. Whichever way you chose to repay the debt, it is important to know what you can and hat you cannot do during the negotiation period. Below are some tips you should keep in mind when dealing with a debt collection company or creditor:

Set Your Emotions Aside
Don't let anger, guilt, shame or embarrassment break down communication between you and your creditor. It's best to address the issue calmly and be honest about your financial situation with your creditor. Getting upset or crying will only make communication difficult so set aside whatever emotional issues you have attached with the debt and ask for options instead. Choose the option which suits your current financial situation and settle the debt as soon as you can.

Stop Spending!
If you have mounting credit card debts to think about, the only logical thing to do is to stop using your credit cards and close most of your accounts to stop the accruing interest charges and minimize penalty fees. Once you closed these accounts, try to negotiate for a smaller amount of repayment and set it in an installment basis. Offer as low as 30% of the original debt amount and work from there.

Repair Your Credit
Unpaid debts cause negative impact on one's credit report which is why it is important to repair your credit as soon as you start paying off what you owe. Here's a great tip, ask your creditor or collection company to note that the debt is paid off satisfactorily rather than less than what was due. This might not entirely remove the bad marks but it will improve your credit history that you will be able to apply for bigger loans and mortgages easily in the future.

Keep all the tips above in mind to reach a reasonable settlement. However, if you are not sure about negotiating with your creditor or collection agency on your own, you can always consult an experienced debt collection lawyer to guide you through this ordeal.

Credit Card Debt Basics - On Debt Responsibility II

Receiving a collection call for a deceased family member’s unpaid balance does throw someone off the loop. The first thing that comes to mind when receiving a debt claim after recently losing a family member is if you are really responsible for it or not. Unfortunately, some debt collectors are not above using dirty tricks, including misrepresenting, to collect the debt. Don't be too quick t repay the debt. You need to know who is really responsible for paying a deceased family member's debt. We’ve compiled tips on how you can resolve the issue:

Know The Rules

Each state has its own rules and guidelines when it comes to resolving debt claims therefore, you need to conduct your own research about the issue and if possible, consult an attorney. Know that there are times when the responsibility of a deceased’s family member will be turned to you. One instance is if you are a co-signer or if you shared a joint account with the deceased. However, if your spouse has a separate account, you are not responsible for the debt, even if the debt collector is claiming otherwise.

Same goes for the children of the deceased. If they were not listed as joint owner of the account or co-signed the debt, they cannot be held responsible for said debt.

Call the Executor of The Estate

Usually, the executor of the estate should be the responsible party for a deceased’s debt dispute. Direct the debt collector to the executor of the estate and let them iron out the issue. Instruct the debt collector that you are not the right person to call and if they tried calling you again, they are crossing the line. A Cease and Desist letter is needed to stop them from further collection efforts.

Familiarize Yourself with the Fair Debt Collection Practices Act or FDCPA

It’s pathetic how some debt collection companies will try to cash out over grieving families. The good news is, there’s no reason why you should be a part of a growing statistics. You can do something about unlawful, abusive and totally inappropriate collection efforts by filing a complaint. If you are receiving incessant collection calls or debt claim notices despite sending a Cease and Desist letter via certified mail with return receipt requested, talk to your attorney and file a complaint.

This will not help you get back at abusive collection companies; you can also collect a fine if you proved that they did engage in unsavory collection practices. To make things easier, do keep a good record of correspondence or conversation between you and your creditor. You can present this as evidence once the proceedings start.

Credit Card Debt Basics: On Debt Responsibility

It’s not surprising that many debt collection companies will try to take advantage of grieving families to cash in on a deceased’s account. In fact, some do call up a grieving family member and would try to use the deceased’s name to make their kin pay for the outstanding balance. Under the FDCPA, debt collectors are not allowed to use deceitful collection efforts to satisfy a debt.

Unless, you are the debt’s co-signer or shared a joint account with the deceased, you do not have responsibility over the debt at all, even if you were the spouse. The same can be said for the deceased’s offspring, they are not responsible for the debt after death.

Settling a Deceased’s Debts

The executor of the estate is the one responsible for all dealings, including outstanding balances, of the deceased. This is why the debt collector should contact the executor of the estate to collect, not the immediate family of the deceased. Unfortunately, some debt collectors do prey on unsuspecting family members so make sure you don’t fall for this tactic and start familiarizing yourself with the Fair Debt Collection Practices Act or FDCPA. Below is an outline of steps you can take to avoid being taken advantage of debt collectors:

One: A Cease and Desist letter has to be sent via certified mail with return receipt requested for persistent collectors who kept calling you or sending you notices about the deceased’s outstanding debts.

Two: Create a good record of all conversations with the debt collector, especially if they are trying to make you feel guilty or use unsavory language just to collect the debt. You can consult an attorney and file a complaint for violating the Fair Debt Collection Practices Act.

Three: Make the executor if the estate request validation of the debt before you hand over the payment! Don’t just pay for anyone’s debt just because you were told by a debt collector about it. Remember, everyone can call someone up and claim that they owe him or her money. It is within your rights to obtain verified information about the debt before resolving the problem.

Always keep the above tips in mind if you are dealing with a debt collector from a dead relative’s due debts. Remember; don’t be too quick to hand over your hard earned cash just because someone claims that a debt has been left unpaid by a deceased family member. Check if the debt is valid, within statutes and make the executor of the estate demand a debt validation.

Making Debt Collectors Play Nice

It used to be that debt collectors had the upper hand when it comes to dealing with debtors. These days, the table has turned, giving thousands of debtors a fighting chance against abusive debt collectors. If you are dealing with a debt collector and you have little clue on how to make them play nice, we compiled helpful tips below:

Demand Debt Details

In the past, debt collectors would use just about every scare tactic in the book to make debtors pay for debts that they may or may not owe. When the Fair Debt Collection Practices Act was passed in Congress, debtors can now demand for information pertaining to the debt. For instance, if you are unsure that the debt is indeed yours, you can dispute the debt claims within 30 days. In turn, the debt collection company has to resent evidence that the debt is indeed yours. The debt collection company is not allowed to collect the debt during this time.

Limit Communication/Correspondence

Gone are the days when a collection agent can call you at work demanding for money or scaring you into paying by threatening to discuss your debt with your employer. By law, they are prohibited from calling you at work or at certain hours during the day and night. They cannot repeatedly call you to threaten, harass or use harsh language to get you to pay. They are not allowed to discuss debt information with other people, including your relatives. If you hired an attorney, they are only allowed to discuss the debt through your attorney.

Cease and Desist Letter

Debt collectors are infamous for their persistence. Put a stop to all collection efforts by sending a Cease and Desist letter via certified mail with return receipt requested. Let them know that you no longer wish to be in communication with them and would rather communicate via mail and nothing else. Most collection agents will stop once they received a cease and desist letter and will only hear from them once they file a credit card lawsuit. However, for others that did not stop, you can file a complaint and receive a fine for it.

The Fair Debt Collection Practices Act helps you deal with abusive debt collectors and prevent them from ever harassing you again so make sure you learn more about local and state rules in your area before you start discussing the debt you allegedly owe with a debt collectors.

A Thing Of The Past: Unfair Debt Collection

Evidence of deceptive, abusive and gross misrepresentation by debt collectors companies have been found in abundance with years of unsavory behaviors on record. As such, Fair Debt Collection Practices Act or FDCPA was passed by the Congress in 1977 to minimize the escalating cases of abusive and unfair debt collection practices in the country.

One of the most common concerns regards unpaid debts include the number of attempts collection agents can call regarding the owed money. It can be quite a nerve-wracking experience to be on the receiving end of these collection calls and letters. Under the FDCPA, debtors can set boundaries as far as collection efforts are concerned. Collection companies can no longer call debtors at the dead of the night or extremely early in the morning to collect. They can no longer call them from work without permission. They can no longer call at any time they want. If they do, debtors can file a complaint and collect a fine. However, debtors need to provide documented evidence proving that abusive debt collectors or junk debt buyers have violated their rights.

Very old, out of statutes debts can no longer be collected. This means collection companies can no longer threaten debtors with a credit card lawsuit or file a credit card lawsuit for out of statutes debts, for that matter. Even if the debt is within statutes, collection companies cannot simply threaten debtors with a credit card lawsuit without any follow through.

It is important to check the statutes of limitations as well as the local court laws in your state if you are dealing with debt claims. The fact is, nothing is preventing debt collectors from making false representation on debt statuses at all. This is why it is important for debtors to take the liberty of knowing more about consumer rights laws and how to deal with abusive collection companies. This is why you should never pay a debt unless you are sure that all information given to you are verified. Anyone can send collection letters and phone calls but if these debt claims don’t come with all information that pins down the ownership of the debts to you, you have to dispute the claim.

If you are disputing a debt, make sure you have all the evidences you need to prove your own claim. You will need to have documented proof if you want your claims to hold weight in court.

A Thing Of The Past: Unfair Debt Collection

Evidence of deceptive, abusive and gross misrepresentation by debt collectors companies have been found in abundance with years of unsavory behaviors on record. As such, Fair Debt Collection Practices Act or FDCPA was passed by the Congress in 1977 to minimize the escalating cases of abusive and unfair debt collection practices in the country.

One of the most common concerns regards unpaid debts include the number of attempts collection agents can call regarding the owed money. It can be quite a nerve-wracking experience to be on the receiving end of these collection calls and letters. Under the FDCPA, debtors can set boundaries as far as collection efforts are concerned. Collection companies can no longer call debtors at the dead of the night or extremely early in the morning to collect. They can no longer call them from work without permission. They can no longer call at any time they want. If they do, debtors can file a complaint and collect a fine. However, debtors need to provide documented evidence proving that abusive debt collectors or junk debt buyers have violated their rights.

Very old, out of statutes debts can no longer be collected. This means collection companies can no longer threaten debtors with a credit card lawsuit or file a credit card lawsuit for out of statutes debts, for that matter. Even if the debt is within statutes, collection companies cannot simply threaten debtors with a credit card lawsuit without any follow through.

It is important to check the statutes of limitations as well as the local court laws in your state if you are dealing with debt claims. The fact is, nothing is preventing debt collectors from making false representation on debt statuses at all. This is why it is important for debtors to take the liberty of knowing more about consumer rights laws and how to deal with abusive collection companies. This is why you should never pay a debt unless you are sure that all information given to you are verified. Anyone can send collection letters and phone calls but if these debt claims don’t come with all information that pins down the ownership of the debts to you, you have to dispute the claim.

If you are disputing a debt, make sure you have all the evidences you need to prove your own claim. You will need to have documented proof if you want your claims to hold weight in court.

Practical Ways To Deal With Unexpected Debt Claims

The slightest misstep in a debt claim could result in costly consequences, which is why it is important to determine how to deal with a debt collector the right way. Under the Fair Debt Collection Practices Act, debtors have a fighting chance against abusive collection agents who are willing to cross the line for a few thousand dollars in credit debt. Below are simple steps on how to handle a debt collection letter from the mail:

Validate the Debt First

You can’t pay for something without verifying whether or not you really do owe money. Unfortunately, many debt collection agencies send collection letters to the wrong address! Under the Fair Debt Collection Practices Act, debtors have the right to ask for debt validation from the collection company. Five days after you first contacted the debt collector, they must present a letter telling you the specifics of the debt’s ownership.

Raise a Dispute

In some cases, collection companies will try to collect out of statutes debts. If the debt is extremely old, it is best to check your state’s Statutes of Limitation on consumer debt. If your debt is out of statutes, the debt collection agency can no longer collect nor can they file a credit card lawsuit. If your debt collector is threatening you with a credit card lawsuit on out an out of statutes debt, you can turn the tables and go after them for crossing the line.

Limit Interaction

Under the FDCPA, you have the right to outline when and how a debt collector can contact you. For example, if you do not want to be phoned at certain hours, you can notify them. If you do not want to be phoned at work, you can inform them and should they persist with collecting the money the way they want at the time they choose, you can file a complaint and go after them. If the collection agent or agency was found to have violated your rights, under the FDCPA, they will have to pay you for damages done for harassment.

In addition, you can stop debt collectors from using threats or foul language to scare you into paying the debt. If you show that you will not tolerate such behavior, they are likely to take the message and back down.

Don’t be fooled into thinking that your debt collector has the upper hand when it comes to debt claims. It is important to know your rights and learn how to protect yourself from unsavory behavior in debt collecting.

Collection Agency Laws: Most Frequently Asked Questions

Despite certain laws being enforced to protect consumer rights, many debtors are still facing grave threats and abuse from determined collection agencies who want to extract every single penny they can get their hands on. Now, the key in protecting yourself against these abuses is to arm yourself with information in protecting consumer rights under the Fair Debt Collection Practices Act or FDCPA. Below are answers to some of the most frequently asked questions about FDCPA:

Apart from consumer debt, does the FDCPA apply to business debts as well?

Unfortunately, business debtors do not have the same rights as consumer debtors. Therefore, the FDCPA do not apply to business debts.

I'm getting collection calls day and night, are collection agencies allowed to call debtors at any given time?

By law, collection agencies are not prohibited from calling debtors before 8 in the morning or beyond 9 in the evening, in your time zone. While there is no definite rule on how many allowable times a collection agent may call a debtor, it is understood that they cannot use collection calls as part of their efforts to have the debt repaid.

Can I get arrested for unpaid consumer debts?

The quick answer is no, you cannot get arrested for consumer debts nor face jail time for it. Only a court of law has the power to release a warrant for your arrest, not the debt collector. If you were threatened in any way, of having the police arrest you for your debts, they are violating your rights and you can sue them for it.

Can a collection agency file a credit card lawsuit for my unpaid credit card debts?

Yes, some collection agencies would file credit card lawsuit and they have the right to do so. However, they cannot threaten a debtor with a credit card lawsuit unless they followed through. In addition, creditors can no longer file a credit card lawsuit nor threaten to file a credit card lawsuit if the debt is no longer within statutes.

I still get collection calls for old debts, is this legal?

Yes, they can collect old debts as long as the debts are within statutes. Each state has different rules regarding the statutes of limitation. Usually, the statutes of limitation will range from three to ten years. Once the debt is out of statutes, the creditor can no longer collect it nor can they file a credit card lawsuit or threaten you with taking legal actions.

What can I do to stop all collection efforts?

A Cease and Desist letter sent to the collection agency is one of the simplest ways to stop all collection efforts. They can no longer call you at ungodly hours nor contact people around you discussing your finances.

How To Fight Back Against Debt Claims

It’s a scary thought to receive a collection letter for unpaid credit card debt. However, for many debtors who does not know how to properly handle a debt claim, we laid out a simple step by step instructions on how you can fight back against debt claims and avoid harassment.

Step 1: Read and Understand the Notice

The Fair Debt Collection Practices Act give debtors the upper hand in any consumer debt claims so don’t be too quick to hand over your hard earned money once you see a collection letter in your mail. First, read and understand the notice and then check if they got the right person. Some collection agencies are known for sending collection letters to the wrong address. Note if the debt amount is clearly defined and their contact details, so you can respond accordingly.

Step 2: Respond to the Notice

Once you read and understood the notice, it’s time to respond to it. The worst thing you can do at this point is to ignore the notice as this could result in a credit card lawsuit. Your silence over the issue could be translated as consent on the debt’s ownership! You will be given 30 days to dispute the debt so make sure you send an appropriate response within the given time frame.

Step 3: Check the Rules

If the debt is sent to you by mistake, it’s important to let the debt collection agency know in writing. Send the letter via certified mail with return receipt requested. On the other hand, if you own the debt, it’s best to check if the debt is within statutes. If the debt is out of statutes, the creditor can no longer file a credit card lawsuit nor threaten you with filing a credit card lawsuit to get you to pay.

Step 4: Take Action

Accepting or rejecting the debt claim is entirely up to you. If the debt is indeed yours, you can either offer a lump sum to repay the debt or propose a payment plan. If the debt is valid and legal, it is best to do the right thing and repay the debt to avoid a credit card lawsuit. However, do not respond to threats, abusive behavior or bullying. If such things occur during the course of the debt validation, you can sue the debt collection companies for violating consumer rights under the FDCPA.


Don’t be afraid to speak up if the debt collection company has crossed the line, threatening you with credit card lawsuit with no follow through and even jail time.

Debt Settlement Companies: Should You Trust Them?

Many debtors work with debt settlement companies, being required to pay the money via escrow and once the fund reaches a certain amount, the company will try to settle the accounts for them. Unfortunately, most of the payments debtors make only covers the extra service charge and other fees that debt settlement companies make them pay. If you have been paying less than a thousand dollars for ten months and your debt, settlement company hasn’t even contacted your creditor, who gets all the benefits? You, your creditor, or the debt settlement company? The answer is pretty obvious.

While you pay hundreds of dollars for almost a year, your creditor will get tired of waiting and your debt settlement company will continuously collect all your hard-earned money. It’s not surprising that many debtors lose all their cash after their creditors filed credit card lawsuit. Most debt settlement companies are in it for the money, so debtors need to tread carefully before they agree into something that these companies offer. If the offer is too good to be true, it probably is.

You are much better off handling your legal and financial problems yourself rather than trusting a debt settlement company to pool all your cash and work with your creditor. After all, why settle working with a middle person when you and your creditor can strike a deal on your own?

It’s no surprise that many debt settlement companies are being deemed as a scam or at best, totally incompetent in terms of settling the debt. When in doubt, it is always better to check other options you have. You can either hire an attorney to deal with the credit card lawsuit, in case your creditor pressed charges against you, or if not, get the attorney to work out a sensible repayment deal with the creditor.

On the other hand, if you cannot afford a lawyer, you can always research on how to properly negotiate a debt settlement with your creditor directly. Don’t wait until your creditor decides to file a credit card lawsuit, give the right person a call, initiate the negotiations and propose a payment plan you can afford.

However, if your creditor filed a credit card lawsuit, you can always check online or purchase eBooks on how to properly represent yourself in court. Familiarize yourself about state laws, federal laws and court rules in your area if you are presenting yourself  Pro Se, in court.

Of Statutes Of Limitations And Debt Collection Agencies

Although debt collectors are known for their aggressive and often, illegal collection practices, consumers now have the upper hand with the Fair Debt Collection Practices Act or FDCPA enacted by the congress. Unfortunately, many debtors remain clueless when it comes to their rights as well as the concept of time-barred debts. This leaves many debtors vulnerable to debt collection harassment and is bullied into paying for debts when they don't really need to.

Now, every debt can be collected until a specific date. Known as the statute of limitation, the length of time until the debt validity expiration will vary from state to state. Because each state's statute of limitations will differ it is up to the debtor to determine how much time he or she have until the debt's validity expires. If your debt is already out of statutes and you still get collection calls from debt collecting agencies, you need to know the limits imposed on such situation.

For example, although the debt is out of statutes, the debt collection agency can still make attempts to obtain payment. Attempting to collect out of statute debts is by no means, an illegal practice. However, debt collector's efforts to do so is now limited. For instance, they can no longer threaten to file a credit card lawsuit. It's common for many collectors to use a credit card lawsuit as way to scare delinquent debtors into paying the debt. On out of statute debts, they cannot file a credit card lawsuit even if they followed through with the threats because the debt is no longer valid for collection. If you have old, unpaid credit card debts that are on the verge of reaching out of statutes status, do not repay the debt because this will just restart the statutes clock!

Some debt collection companies go at great lengths to collect debts, including re-aging old, out of statutes credit accounts to buy them more time for collecting the money by filing a credit card lawsuit. This means if a debt is beyond the statutes of limitation in your state, they can fool you into paying by starting the statutes clock to file a credit card lawsuit.

If you suspect that your debt has been re-aged, you can request a credit report from major credit reporting bureaus and examine the information on the report. If things do not add up to the information released by the debt collector pertaining to the old debt, take note of it, point it out and report the agency for re-aging your debt account. Do note that in some states, re-aging charged off accounts is legal as long as the debtors acknowledge that they own the debt.

Fair Credit Reporting: What You Need To Know Now

Debt collectors have always been linked to harassment, threats and use of profane language to extract debt payments, especially old debts, despite laws enforced to protect consumer rights. Out of statutes debts will be sold and resold and often, those who purchased the accounts will not hesitate to step on a few toes just to make a successful collection.

Unfortunately, unpaid debts, old and new, will cause a negative impact on your credit. Worse, some debt collectors will even try to falsely report negative remarks on major credit reporting bureaus without verifying the identities of the debtor or without waiting for the debtor to dispute the alleged debt.

This isn’t exactly a new collection tactic; many debtors will even try to report out of statutes debts in a bid to cause negative effects on debtors’ credit report. This is a major concern for many because employers and even landlords usually checks the credit of an applicant and if they see bad marks on one’s credit, their application will be rejected.

Now, the good news is, there are actually laws in place which gives consumer more rights to their own credit reports. For example, you can dispute a false claim that has been made on your credit report, in writing. You will also need to get in touch with the credit reporting agency to have them investigate the discrepancy on your report and report the result of the investigation to you. If the statement made by the debt collection company is indeed false, the statement will be removed from your report.

This means it is important to request a copy of your credit report, especially if you have old, charged off credit card accounts with unpaid debts.

Under the Fair Credit Reporting Act or FCRA, everyone is entitled a free copy of credit report from the three major credit reporting bureaus once a year. To request a copy of your credit report, go to a credit reporting bureau's website and request for one. The Fair Credit Reporting Act or FCRA give debtors the power to control their credit history and dispute false debt claims that could cause negative effects on credit reports.

Once you receive your free credit report, you can check outstanding balances that need to be repaid or, if you have an existing credit dispute with a debt collector agency or creditor, you can check if the debt in question is within or beyond statutes.

Collection Agency Laws: What Debtors Need To Know

Despite laws enforced to prevent consumer rights violation, it's not unusual for debt collection agencies to cross the line and talk their way into extracting money from debtors. Unfortunately, not all debtors are aware of the Fair Debt Collection Practices Act or FDCPA. To shed light on consumer rights laws, read

One: The Fair Debt Collection Practices Act was passed specifically for consumer debt. This means people with business debt are exempted from this act. Debtors who have business debts do not have the same rights as those with consumer debts.

Two: Debt collection agents are prohibited from calling debtors very early in the morning or beyond 9 in the evening. While the FDCPA did not specify how many times a collector can call up debtors, they are prohibited from threatening or harassing debtors into paying the alleged debt.

Three: Under the FDCPA, debt collectors cannot threaten debtors jail time for unpaid credit card debts. They cannot issue a warrant for arrest because only a court of law can send such warrants. Any debtors who threaten debtors with jail time or arrest warrants are violating the FDCPA.

Four: Collection agencies can file credit card lawsuit against delinquent debtors. However, they cannot use a credit card lawsuit as a threat unless they already acted on it. Debtors need to check if the age of the debt is out of statute. If such is the case, debt collectors can no longer pursue the debt via credit card lawsuit as it is already time barred. Debt collectors who plan to file credit card lawsuit should only.

Five: Statute of limitation varies from state to state. Usually, the statutes will range from three to ten years. It's best to check your state's statute of limitations for credit card debt to be on the safe side. Once a debt is out of statute, debt collectors can no longer file a credit card lawsuit nor can they collect the money in any other means.

Six: You can stop the credit harassment. If a collection agent is calling you on your home number or in your office, spewing threats and using profane language, or attempt to discuss the debt with a third party, they are violating your rights as a consumer and you can take legal action against such harassment.

Knowing your rights is the first step towards dealing with debt collectors, abusive or otherwise. Most debt collectors assume debtors have no idea about consumer rights and continuously use threats as a way of extracting debt repayments. So know your rights and stand up against abusive debt collection practices.

Credit Collection Laws And You

The Fair Debt Collection Practices Act and the Fair Credit Act has helped thousands of debtors free themselves from collection agents and junk debt buyers who act like complete Neanderthals when collecting debts. Junk debt buyers, collection agencies and sometimes, even original creditors are known mostly for their unforgiving, intimidating and often illegal collection tactics to extract money from debtors. Since laws have been enforced, consumer rights are protected against mean-spirited credit collectors, which is why it is important to educate yourself with credit collection laws to minimize the chances of being harassed by creditors or collection agencies.

One of the most common ways debt collectors obtain information from debtors is asking for their bank or credit card information. In the past, debtors have no other choice but to divulge such sensitive information from creditors or collection agencies. However, things have changed, laws are enacted and junk debt collectors and collection agencies can no longer make a person give his or her credit card and bank information.

Once contacted by a debt collector, debtors are given 30 days to dispute the debt and make the debt collector prove the ownership of the debt in dispute. The bottom line is, you don’t need to pay anything just because someone claims you owe them money. If they can’t produce proof that you owe them money, they can’t collect the money nor can they file a credit card lawsuit.

Apart from proving the debt’s ownership, collectors can no longer threaten, use profanity, vulgarities or use demeaning language to scare debtors into paying the debt. They can no longer humiliate you or talk to third parties about your financial problems. They can no longer discuss confidential debt information to other people. They can no longer threaten to garnish your wages, put lien on your properties when they haven’t gained legal authority to do so. They can only obtain a portion of your paycheck if they win the credit card lawsuit they filed otherwise, no such threats are allowed under the FDCPA.

If debt collectors continuously call you at the dead of the night or early in the morning, you can send them a Cease and Desist letter, information them that you do not wish to be contacted via phone calls and will respond only in writing. In response, the debt collector can only notify you about their next step, usually filing a credit card lawsuit, in writing. If they refuse to comply, they are violating the mandates of collection laws and will be brought to justice.

What To Do Next When You Got A Collection Letter In The Mail

With the unstable economy and an unsure future of most businesses, the last thing you need is a credit card debt collection letter landing in your mail. Unfortunately, this happens to hundreds of people across the country. It’s their reality. If such is the case, don’t panic. There are steps you can state in order to address the issue and even stop your debt collector from filing a credit card lawsuit.

Immediate Respond To Request Validation of The Debt

Debt collectors do not have the right to ask debtors to pay the alleged debt without proving the debts’ ownership. Note that the burden to ask for credit card debt evidence is on you. Simply respond to the collection letter with a request for debt validation, within 30 days of receiving the collection letter. If you ignore the letter, you are only increasing your chances of facing a credit card lawsuit. If you request a debt validation, you give yourself more time to figure out your next move. Make sure to send the debt validation request via certified mail with a return receipt requested.

Check Your State’s Statute of Limitations

Did you know that debt collectors only got a limited time to collect debts otherwise, they are no longer allowed to pursue the debt or file credit card lawsuit? As soon as you are notified about the debt, check your state’s Statute of Limitations for consumer debts through your Attorney General’s website. If the debt is out of statute, your debt collector cannot collect the money or file a credit card lawsuit and use wage garnishment or property lien as ways to get you to pay the debt.

Do note that some states reactivate statute of limitations as soon as you repay the debt! So don’t pay the debt without knowing the next move you take. If the debt is out of statute, simply ignore the collection letter or send a letter to the creditor letting them know that the legal collections stage has passed. If the debt is within statute, don’t be too quick to start payments because this will bring back the statute clock. Instead, consult an attorney or educate yourself on the right defenses to use if the creditor files a credit card lawsuit against you.

Know Your Rights

Lastly, it is important to familiarize yourself with the Fair Debt Collection Practices Act, particularly if you came across rude, aggressive debt collectors who will stop at nothing to get the money you allegedly owe. Most debt collectors are hoping you know nothing about consumer rights and will try to squeeze every last penny from you so don’t be a victim and fight back.

Debt Collectors: Rising Complaints For Abusive Collection Tactics

According to the Federal Trade Commission, gathered by the Consumer Financial Protection Bureau, debt collectors have the highest number of consumer complaints.  Both the Consumer Financial Protection Bureau and the Federal Trade Commission gathered all data and found that debt collectors routinely violate the FDCPA for their aggressive and unsavory behavior when collecting debts.

Now the question becomes, why are they rude when they collect credit card debt? Why do they cross the line routinely just to collect money from debtors? Below are some of the possible reasons why:

Commissions: Most debt collectors earn money each time they successfully collect the credit card debt. This is their prime motivation, if they cannot collect, they won’t get paid! This makes you wonder just how much they are getting the way they aggressively seek out debtors. From the looks of it, a lot of money is at stake.

Shady Employees: Did you know that some collection agencies actually hire convicted felons to collect credit card debt? Worse, others are caught red handed running scams, like making other people pay alleged debts they don’t really owe. These collection agencies have been routinely caught by the Attorney’s General and have paid hefty fines to bail themselves out of trouble. Unfortunately, the Attorney’s General does not have enough manpower to totally eliminate these scoundrels and some continuously cross the line, violating the rights of debtors.

Ignorant Debtors: One of the most likely reasons why collection agencies even try their luck at bullying debtors is they know most of them do not even know anything about consumer rights laws. They go crazy scaring people out of their wits for unpaid credit card debt and getting more than the actual debt owed. If consumers do not know anything about the law, they cannot make debt collectors accountable for their actions. Debt collectors are always on the lookout for new ways to squeeze every last cent out of debtors so it’s important to educate yourself about the FDCPA and learn what you can do to stop abusive collection efforts.

All these factors play a role in encouraging debt collectors to obtain money through dubious and often illegal collection efforts. The important thing to remember is that there are lows enforced to control these unsavory strategies and you can bet that if you show your debt collectors that you know a thing or two about the FDCPA, they will think twice before they try to bully you into paying.

How To Negotiate With A Debt Collection When You Got No Budget For Repayment

In most cases, creditors who are pursuing debtors will make them feel like they got the upper hand when negotiation starts. They will try every trick in book to collect from debtors including threatening phone calls, harassing letters and even phoning you from where you work. If you can settle dispute, they will stop all the annoying phone calls and letters. But this is easier said than done if you don’t have the budget to repay everything. If you don’t have the money, is there are way to resolve the debt and quite possibly avoid a credit card lawsuit. In this article, we will discuss ways in which you can settle your debt, avoid a credit card lawsuit, all without having the budget to pay off debts:

Don’t let the debt collector know about not having the money to repay the debt. What many debtors don’t know is that they are not obliged to reveal their financial status to the debt collectors. Also, you want the debt collector to be under the impression that you can pay the debt so they will make things easier for you, in terms of resolving the debt.

Offer an amount 50% to 75% lower than the original debt amount. Debt collectors and creditors alike would rather collect a small sum rather than not getting any money at all. You might not have the cash to pay the debt right now but a massive discount on your debt could make it easier to repay the debt in the future.

Offer an installment payment plan. Shooting for a monthly payment plan will give you leeway to save up and pay up. In addition to all that, you don’t need to pay a lump sum, which is unrealistic if you barely have enough cash to pay daily expenses. If you show the creditor that you are making efforts to pay the debt, they might go easy on you and grant your request.

Dealing with the debt in person. In most times, talking to a creditor or debt collector in person should be discouraged but desperate times require desperate measures. A few facts to remember when you do speak with your creditor or debt collector, note the name of the person you are talking to, keep a good record of the conversation and put everything in writing. Finally, never let the other person know you do not have money to repay the debt!

Be assertive yet polite. Give your creditor or debt collector the impression that you are familiar with the Fair Credit Reporting Act so they do not try to intimidate you using scare tactics. When negotiating with a creditor, it is important to say your piece politely, while also keeping your dignity intact.

Important Questions to Ask When In Contact With A Collection Agent

Dealing with a collection agent is quite a stressful experience especially with the possibility of facing a credit card lawsuit. For others, ignoring the problem might seem like the best thing to do but if you want to rid yourself of a problem, you’re going to have to find to a resolution. If you came across a collection agent trying to get you to pay an alleged debt, it is important to ask yourself these important questions:

“Is he calling the right person?”

Many debt collectors contact the wrong person because they get very little information from the original creditor when they purchased charged off accounts for pennies on the dollar. Therefore, if you have a similar name as that of a debtor, they just might mistake you for the other person and call you. If such is the case, make sure you let the debt collector know and take note of the time and date he or she called you. If the calls persist, you can take legal action against the debt collector.

”Do I own the debt?”

If you own the debt, it is important to check if the debt is out of statute. If that’s the case, the collector can no longer pursue you since the account is old. On the other hand, if you are unsure whether or not the debt is yours, you can send a debt validation notice to get more information pertaining to the details of the debt account.

“What should I do to repay the debt?”

If the debt is indeed yours, you need to know what you can do to take care of the problem. Don’t just ignore the debt collector that may result in a credit card lawsuit, rather, talk to them and negotiate a settlement and just keep the agreement in writing. That said, it is important to not divulge any personal information, including your bank details and personal contact information. If you do not have the money to pay the debt, let the other party know. If the debt collector files a credit card lawsuit, you can defend yourself in court and quite possibly even win the case, as long as you do not ignore the summons for the credit card lawsuit.

“Should I hire an attorney?”

If you are facing credit card lawsuit, you can either hire an attorney or defend yourself in court. For many debtors, a great document with info about how to fight credit card lawsuit is enough to win the case. However, if you got the budget, go ahead and hire a lawyer. Also, if you feel that a debt collector has violated your rights, you can also pursue them legally and even pocket a fine for it.

Protecting Consumer Rights Under The Fair Debt Collection Practices Act

Debtors are expected to repay the debt they incurred within the given terms of the contract. Unfortunately, a number of debtors got debts so high, they are unable of repay them at all. Creditors have the right to collect the debt, with a few limits, of course. The Fair Debt Collection Practices Act or FDCPA is enacted by the congress to stop abusive debt collectors from applying aggressive collection efforts, including using threats or intimidation to get debtors to pay up.

The FDCPA protects consumer rights related in personal and household debts or consumer debts including phone bills, credit card bills, medical bills, etc. Do note that this Act is only pursuing debt collection and not creditors.

As a debtor, it is important to know what you can do to protect your rights against unscrupulous debt collectors. Below are debt collection efforts that debt collectors cannot apply under the FDCPA:

* Calling at 8 in the morning or 9 in the evening, your local time
* Phoning you at work after telling them not to
* Calling you when you have a legal representation (contact the agency and leave your attorney's contact details for future communications)
* Contacting you through postcard
* Misrepresentation, profane, obscene, language
* Discussing confidential debt information to a third party
* Publishing your personal details
* Reporting inaccurate information to credit bureaus
* Threatening you with a credit card lawsuit
* Threatening you with wage garnishment
* Threatening you with property lien
* Using fake names or claiming to work in a credit bureau

Debtors' Rights:

One: You have the right to arrange a payment plan that both parties can agree to (get this in writing and include the date, the name of the person and the time).

Two: You have the right to request collectors to stop contacting you.

Three: File a complaint to the Federal Trade Commission when a collection agency violated your rights as a consumer.

Four: Take legal action against a collection agency when your rights are violation. You will need to hire an attorney who has extensive experience in fighting debt collectors.

As a consumer, you should be aware of your rights and what you need to do in order to protect yourself against abusive debt collectors. Therefore, educating yourself about the enforced law against unscrupulous collection practices is a must. Start with knowing more about consumer rights laws under the FDCPA as well as local court rules in your state, in case your creditor decides to file a credit card lawsuit for your unpaid balance. This is one of the best ways to fight deb claims without hiring an attorney.

Learn how you can handle answering a summons on your own and WIN your case! This groundbreaking eDocument will help you end all debt claims and fight credit card lawsuit! 

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Avoiding A Credit Card Lawsuit: Negotiating With A Tough Creditor

With the looming economy, inflation and hundreds of people dealing with various financial problems, it's not surprising that many are also facing credit card lawsuit for unpaid debt. The good news is, there is a way to avoid such problems, like meeting up with your creditor and striking a deal. However, these agreements do not always result in favorable repayment option for debtors.

If you want to negotiate with your creditor and avoid a potential credit card lawsuit, you need to contact your creditor immediately; this can be done by phoning them as personal meet ups might be difficult to pull. Note that it's much easier to negotiate with the original creditor rather than just the collection agency who purchased your account from your old card company. Usually, creditors or collection agents would notify you whether or not they will file a credit card lawsuit against you. Whichever the case, negotiating a deal would most likely require you to pay a onetime lump sum.

The deal will boil down to the payment amount. Of course, the creditor has a drawn out amount they expect to be paid. If they disagree with your offer, you can go ahead and offer a payment plan that fits your budget. Whatever the agreed amount is, make sure you can afford to pay it each month. To avoid a potential credit card lawsuit, you have to be proactive and contact your creditor as soon as you can. This not only helps protect your creditor score from being impacted negatively, and prevents the creditor from selling your account to a collection agency.

It helps to be diligent in terms of responding to your creditor's proposed payments. When it comes to card debts, repayment is always better than an uncollected account. Some creditors might try to modify the offer while others will refuse to accept the payment plan you propose. If the creditor refused your offer, ask them what acceptable amount they can accept. If say, both parties has agreed on a payment plan, always put everything in writing. Additionally, a receipt will be given, stating the debt has already been paid in full.

Putting everything in writing is important because you cannot count on your creditor to keep their word every time! A written payment is a viable proof of your good faith to the judge, in case, things turned for the worst and your creditor filed a credit card lawsuit in the end.

Other Illegal Debt Collection Practices To Watch Out For

Credit debt collectors are known for their abusive and in some cases, downright illegal collection practices. In this article, we will discuss some of the other illegal debt collection practices you should watch out for.

Unpermitted Calls To Debtors’ Offices

Sometimes, when creditors or debt collectors are running out of ideas how to hound debtors, they go the extra mile to ensure the debtors will get in trouble for their unpaid debt, even going as far as calling their work office despite not having permission to call the place. Know that under the FDCPA, creditors and debt collectors cannot contact the debtor at work of the employer does not permit such calls. To stop a creditor from calling you from your office, tell your creditor to stop calling you from that number and follow up in writing. If the creditor continuously call you despite warnings, it’s best to press charges.

Divulging Confidential Debt Information To Third Parties

Under the FDCPA, debt collectors cannot contact other people and divulge sensitive information about the debtor, including the debt information, to another person. This rule covers families, friends, relatives, employers, colleagues, neighbors, etc. Debt collectors cannot discuss a person’s debt unless that person is a co-signer, spouse or the debtor’s attorney! If a creditor is found to have discussed a debt with another person other than the specified personalities, talk with a consumer debt attorney and file a complaint. Make sure to take a record or evidence of the incident.

Failure to Validate The Debt

Creditors should present documented evidence that will validate the owed money by the debtor when the latter sent a debt validation letter. Creditors are given 30 days to completely validate the debt and they should stop trying to collect the debt within this period. In addition, if the debt has been reported to major credit reporting agencies, the creditor has to report that the debt is being disputed.

Continuous Collection Efforts Despite Sending A Cease and Desist Letter

If you want to make your creditor stop contacting you, all you need to do is to send a Cease and Desist letter. This will allow your creditor to contact you through written correspondence only and when they do, it’s only to notify you of their next action, which is filing a credit card lawsuit most of the time. That said, do not send a Cease and Desist letter when you know you owe the debt and that you are only doing it just so you can continuously ignore the debt. You leave your creditor no other choice but to file a credit card lawsuit against you.

Protecting Your Rights Against Abusive Creditors

In most cases, junk debt buyers and creditors are so eager to collect that they will do practically anything to get the money, regardless whether their actions are illegal or not. The good news is, complaints about abusive creditors and debt collectors are on the rise that the Federal Trade Commission released the top complaints that consumers report about their debt collectors:

Demands Unreasonable Debt Payment

According to the Fair Debt Collection Practices Act or FDCPA, debt collectors are not allowed to misrepresent the amount or the legal status of a certain debt. This means creditors or junk debt buyers cannot collect more than the original debt value and are not allowed to inflate the debt with interest or added charges unless permitted under state law. As a consumer, you have every right to request a validation of the debt in writing. This will force the creditor to present documents that will prove ownership of the debt.

Abusive Collection Practices

Debt collectors are prohibited from harassing debtors into paying the debt. This means they cannot use threats, profanity, racial slurs or any demeaning language to shame debtors into paying the money owed. They cannot call you at inconvenient times to collect unless you stated that it’s fine to call before 8 in the morning or beyond 9 in the evening. It’s important to keep a good record of every correspondence and conversations you had with your creditor as this could be the key to winning the credit card lawsuit.

Threats of Credit Card Lawsuit, Wage Garnishment, etc.

Debt collectors are prohibited from using wage garnishment, jail time or filing a credit card lawsuit when they do not intend to keep their words or do not have legal authority to carry out the threats. If your creditor is threatening to put you to jail to make you pay up, he is breaking the law because there is no law in the US that pertains to putting people in jail for credit card debts. Credit card lawsuit fall under civil lawsuit, not criminal cases. Therefore, there should be no fear of doing time even if your creditor files a credit card lawsuit.

Additionally, creditors and debt collectors have no legal rights to garnish wages or put lien on your properties unless they filed a credit card lawsuit and they managed to win it. The only time they will be allowed by the court to collect cash via wage garnishment or property lien is when they got a default judgment ruling at the conclusion of the credit card lawsuit they filed.

Things You Need To Know About The Fair Debt Collection Practices Act

Although many people are familiar with consumer rights law, not a lot of people understand how the law under the Fair Debt Collection Practices Act should be implanted. As such, many debtors are continuously being victimized by abusive creditors and debt collectors, living in fear of being sent to jail for losing a credit card lawsuit. Understanding the law shouldn’t be hard that’s why we compiled some of the most important things you need to know about consumer rights under the Fair Debt Collection Practices Act.

You Can Press Changes If Lines Have Been Crossed

You have the right to press charges against a creditor if your rights have been violated under the FDCPA. In most cases, the creditor will try to settle the case out of court but if you went on with it, you can collect $1,000 in damages inflicted along with the legal cost.

Demeaning, Threatening or Profane Language

Whether or not you are behind your bills, you should be treated with respect. Therefore, if your creditor is using foul, profane language in a bid to intimidate you into paying, you don’t have to put up with that at all. Threatening phone calls, profanity, racial slurs and any other rude behavior used to collect credit card debt is illegal under the Fair Debt Collection Practices Act. If you came across such collection agent, consult a consumer debt attorney and determine the next best step to take to teach him or her lesson.

You Have the Right to Demand Evidence of the Debt’s Ownership

Under the FDCPA, debtors have the right to demand documented proof that the credit card debt in question is theirs. A collection agency should send a written notice within 5 days of calling you. The notice should include all necessary information relating to the debt including the name of the original creditor and the extra fees added to the total balance amount. In addition, the notice should inform you that you have 30 d¬¬ays to argue the credit card debt, and if you did dispute the debt, the creditor will then have to prove that the debt is indeed yours.

Stop Harassing Phone Calls and Letters

A Cease and Desist letter, informing your creditor that you no don’t want them to call you about the debt should be enough to stop all the harassing phone calls and letters. Of course, this does not mean you won’t have to pay the credit card debt if the debt is indeed yours.