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.

Illegal Collection Practices By Debt Collectors

Junk debt buyers and collection agencies are infamous for their collection strategies that range from threatening phone calls to actual credit card lawsuit. Threats of wage garnishment, property liens and fraud charges are also very common. Some collectors go as far as contact the people around the debtor, including employers, friends, and relatives, in a bid to shame the debtor into paying. With all these aggressive collection tactics, the question becomes, are they legal?

Not so, according to the Fair Debt Collection Practices Act or FDCPA. The FDCPA is a federal law that protects consumer rights against unfair collection practices that debt collectors, junk debt buyers, creditors or any other debt collection agencies apply. Whether it's a threat to face jail time or garnish wages, we have compiled some of the most common, and downright illegal, threats creditors and junk debt buyers use to scare people into paying:

Wage Garnishment

Did you know, that in some state like Pennsylvania, it is completely illegal for junk debt buyers or creditors to threaten debtors of garnishing their wages because this act is completely illegal? If an activity cannot be carried out, it cannot be used as a threat. Wage garnishment does not occur in Pennsylvania for credit card debt so scaring people into paying via wage garnishment is completely illegal.

Jail Time

Most creditors and junk debt buyers use credit card lawsuit and jail time as threats. Here's the straight fact: There is absolutely no law in existence in the US that will cause debtors to go to jail for unpaid card debts. Zip, zero, nada. Since jail time cannot be carried out, using it as a threat is illegal. Sure, creditors can file a credit card lawsuit for the debt but jail time should not be used to scare people into paying their debts.

Contacting Friends and Family

Creditors and junk debt buyers are not allowed by law to contact a debtor's friends, family or employer to shame debtors into paying their debts. Regardless of the circumstances, they should not discuss debtor's financial problems with other people. The only time a creditor can contact a relative or a neighbor is if they cannot locate the debtor but only after a good faith effort.

Unfortunately, the fact that many debtors remain ignorant of the law is the reason why many creditors and collectors continue to apply the above illegal practices. If your creditor or collector crossed the line, don't hesitate to report them to consumer attorney and sue them for violating your rights.

When Is The Right Time To Press Charges Against Card Debt Collectors?

Debt collectors and junk debt buyers are infamous for their aggressive, abusive, and inappropriate collection efforts. While some debt collectors abide by the law, others are just plain stubborn, applying illegal collection practices and sometimes, even crossing the line.

If you got unpaid debts and your creditor or the junk debt buyer is threatening to file a credit card lawsuit, it's never a good idea to take the situation lightly. However, if your creditor is threatening you with wage garnishment, property lien, or even jail time and you believe they crossed the line just to collect the money, you need to consult with a local consumer law attorney who has great experience in handling similar cases. It's highly likely that you will be advised to press charges. Below are some of the most common collection efforts by debt collectors that are illegal under the Fair Debt Collection Practices Act:

* Profane, obscene or abusive language
* Threats of violence or bodily harm
* Repeated phone calls each day
* Threats of ruining your credit
* Threats of jail time, calling your employer or your mother and telling on your debts
* Threats of wage garnishment, property lien, extracting money straight from your savings account (They will have to win the credit card lawsuit to be able to do all these)
* Implies that he is a lawyer when he is not, presents misleading information about representing the company to collect debts
* Attempts to collect even after filing a Chapter 7 bankruptcy
* Tries to collect a higher amount of money than the original amount
* Continuously contacts even when you sent a Cease and Desist letter
* Phoning your work office even when your employer specifically tells him not to call again
* Phoning you before 8 in the morning or after 9 in the evening, unless you told the collector it's fine to call you during these hours
* Failed to provide a written validation of the debt after you sent them a debt validation letter

It's critical to put keep a good record of all communications you had with an abusive collection agent . The record could make or break your case once the other party files a credit card lawsuit . You can also add copies of letters sent to you by the collector, cancelled checks, receipts and other notes.

Phone conversations can also be a part of record keeping. You can either take note or record the conversation but only with the permission of the person on the other line. Any record you keep may be used if the case reaches the court.

Why Debt Disputes are Important

A debt dispute is the act of arguing, disagreeing, or questioning the balance. In cases where in credit card balance problems arise, it is important to dispute the debt in question, especially if certain things do not add up. However, note that disputing the balance won't just start and end with calling your creditor and denying you owe them money. All types of disputes require accurate timing and precise approaches. Getting the upper hand is the key to an effective debt dispute as it can help you avoid a possible credit card lawsuit. You can actually walk away with cleared debt or settle the balance at a much smaller sum than the original amount with the right approach.

One of the most common ways to raise a dispute is to question the balance by phone. However, note that verbal contention won't hold much weight in court unless your creditor chooses to file a credit card lawsuit against you. Your creditor can simply deny all these allegations and that's the end of that.

Another common ways to raise disputes is by sending debt verification letter. Debt verification letter requires the creditor to review the correct name and address of the debtor. However, please note that a correct name and address won't really do much to build your case. Debt verification letters will not protect you legally either because they do not require account validation process.

So what can you do to effectively raise a dispute against creditors? Sending a debt validation letter is considered as the most effective way to argue the debt. Unlike debt verification letter, the Fair Debt Collection Practices Act supports debt validation letter. Debt validation letters is set by law through the FDCPA to compel creditors, collection agencies, and junk debt buyers to present corroborative evidence and certified proof that the balance is indeed under the debtor's name, if the debtor sends a debt validation letter.

If the junk debt buyer or the creditor failed to completely certify your credit card account, they cannot go on collecting money from you. This shows that debt validation letters can help protect you from balance claims made by debt collectors and creditors. The fact is, debt validation letters are grueling requirements that creditors, more so for debt collectors, who cannot access important documents that could pin the debt under your name. Bottom line is, a well written debt validation letter could help creditors and junk debt buyers from collecting money, and eventually avoid credit card lawsuit altogether.

Credit Card Lawsuit Tips: Dealing With a Collection Company The Smart Way

No one likes it when rude collection agents come knocking on the door to collect the money and no one likes to wake up and receive a summons for unpaid credit card debts. Unfortunately, hundreds of people across the country are neck deep in credit debt and with the looming economy; it seems there's no way getting out of a this situation than to work with your creditor to resolve the problem.

Dealing with a debt collector is not easy. Therefore, we have compiled several tips that will help you avoid a possible credit card lawsuit and resolve the issue with your creditor:

Keep Everything in Record

You can't expect your creditor or the junk debt buyer to stick to the agreement so make sure you keep everything in writing and keep a good record of all communication with the other party. Made special note if you came across an abusive or rude collector who showed unprofessionalism when collecting the debt. This could be useful when you file a complaint against that person for violating your rights.

Talk To The Manager

Don't waste your breath talking to a mere representative and go straight to his manager. If you haven't received any results from talking to the manager, you can file a complaint against that agency as well as a report to the Federal Trade Commission for unnecessary, unprofessional behavior.

Don't Ignore The Debt Collector

No matter how tempting it is, don't ignore the debt collector because they are counting on it. Besides, problems won't go away if you ignore them. However, do not subject yourself to abusive behavior and threatening phone calls either. It's best to talk to your creditor in writing only. This way, you won't be vulnerable to threats, abuse and you won't be talked down into paying the money without due process.

The worst thing you can do is to ignore the summons because this is exactly what the creditor or junk debt buyer expects. They want you to ignore the summons so they can win the credit card lawsuit by default, allowing them to obtain your money straight from your bank account or through wage garnishment and property liens. Apart from your savings being sucked dry by the junk debt buyer, you will also be ordered to pay for their legal costs so it is best toanswer the summons , face the credit card lawsuit head on rather than simply ignoring the problem and letting your creditor get an easy win.

Why Creditors Press Charges Against Debtors

It’s natural for credit card companies, or any other credit companies for that matter, to press charges against delinquent debtors who no longer pay the minimum payments of overdue balances. There are many factors that resulted in even more aggressive collection methods many creditors use in order to get their money; one of the most obvious is the failing economy. The rather unstable economy meant banks and credit card companies need get the most out of delinquent debtors, which is why they tend to scare them off into paying by filing credit card lawsuits.

In most cases, credit card lawsuits are filed through various law companies that take in high volume cases so if you served with a summons, you’re probably one of the hundreds of debtors who received the same thing and the summons are usually delivered and not mailed. The Summons can either be given to you in person or it is left at your front door.

Why Do Credit Card Companies Sue?

Despite the increasing number of delinquent debtors facing credit card lawsuits in the country, not all creditors will readily pursue legal action because many value their customers more, despite the unpaid debts. So if you suddenly received a summons for credit card debt, it’s usually after a creditor has contemplated all possible efforts to get a hold of delinquent debtors.

Here are the factors many card companies consider before filing a credit card lawsuit:

1) Debt amount

2) Is there a co-signer responsible for the overdue account

3) Debtor’s employment (possible candidate for wage garnishment)

4) A debtor’s mortgage records

5) Debtor’s age/disability (if any)

The fact is, credit card lawsuits are filed because someone has to be responsible for paying the debt. If say, you got enough money for everyday expenses and more, and yet, you are continuously dodging paying even minimum credit card debt payment, then you are a perfect candidate for collection or a credit card lawsuit.

To avoid any sort of trouble with your creditor, diplomacy is still the best way to resolve such problems. Make sure you work with your creditor in order to come up with a great payment scheme that is favorable to both parties. The fact is, many creditors hate pressing charges as much as debtors hate receiving summons for credit card debt. If you can talk your way out of a credit card lawsuit, you will be saving yourself a lot of time and money. So open the lines of communication with your debtor and make an effort to settle the dispute out of court.

Sued For Credit Card Debt? Don’t Make A Payment

Dealing with credit card lawsuit that is out of statute? If you are one of the thousands of Americans who are facing a lawsuit for unpaid debts, it is important to know the rules your state and local laws you can use against abusive junk debt buyers and/or collection agencies.

Depending on your state, card debts can only be collected at a given period. This is called stature of limitations. A debt collector can no longer collect the debt if the debt is out of statute nor can he press charges for the unpaid debt.

Unfortunately, hundreds of debt collectors are getting richer manipulating the system for years. They will try to issue a complaint or even file a credit card lawsuit against old debts which are sold and resold to various collectors for penny on the dollar. You can only imagine how much these people make once they were able to collect from unsuspecting debtors. Also, since the debts have long been written off, the burden of tax is significantly reduced.

Once you are served the summons, you can either panic and do nothing or you can defend yourself Pro Se. If you chose to fight the credit card lawsuit, start by filing an answer to the summons and complaints. Debtors are given 20 days to file an answer otherwise, the court will rule a default judgment against you, giving the creditor rights to garnish your wages or worse, put liens on your properties in order to satisfy the debt.

No debtor should ignore a summons because this is exactly what creditors are counting on. Once they win the credit card lawsuit via default judgment, they can easily freeze your account, garnish wages, and make the debtor pay for their own legal expenses too. In short, ignoring the summons will cost you more in the end, which is why it is critical to read and review local and state laws to determine what steps you should take when a creditor files a credit card lawsuit against you.

In addition, if your creditor sues you, do not, under any circumstances, start paying for the debt! Repayment will re-start the Statute of Limitations clock, sabotaging your defense if the credit card lawsuit made it to court. So before you make any decision, make sure you have taken into consideration all factors concerning the debt otherwise, you might unwittingly admit that the debt in question is indeed yours, through recent payments.

Facing a Credit Card Lawsuit? Don’t Panic Just Yet

For many debtors who are facing credit card lawsuit, their worst fear is getting a default judgment and paying everything from the debt down to the creditors' legal expenses. Being sued is overwhelming but it does not mean you should just give in to your emotions and start panicking. Don't. Instead of panicking, you should look for ways to defend yourself in court.

The good news is, your creditor or their representative, won't go knocking on your door anytime soon. Before you start panicking over a potential card lawsuit, consider the following facts:

Credit card lawsuits are on steady decline: Most courts in the country are well aware that creditors, junk debt buyers and collection agencies cannot proven card debt ownership as easily due to lack of documentation and any issues relating to paper work. What's more, the robo-signing scandal as well as foreclosure crisis also revealed how dirty certain junk debt buyers and collection agencies

There are certain banks that no longer file lawsuits complete because they lack sufficient proofs, ending up sending affidavits of debts as evidence which are manufactured proof so they end up embroiled in more court trouble that they can handle.

Credit lawsuits are also a lengthy procedure that are expensive and requires paperwork. If a debtor receives a summons, he or she usually have 20 days to respond to the complaint and then once the response to the summons is sent, both parties will engage in sending documents back and forth. One credit card lawsuit will usually take several months before a resolution is found so many card companies no longer consider filing a credit card lawsuit as a great way to collect money.

Finally, it was discovered through a brave whistle blower that more than 60% of credit lawsuits that were through the court system and have won judgments are found to contain discrepancies and errors. The fact is, most credit lawsuits contain grossly exaggerated sums of money, targeting cash-strapped individuals who are already having problems making ends meet as it is.

So when you are served with a summons for credit card lawsuit, don't be too quick to panic. Just find ways to settle the dispute in a peaceful manner but when it cannot be helped, exhaust all efforts to know more about state and local laws you can use to your advantage. This way, by the time you receive a summons for unpaid credit card debt, you know what to do to defend yourself in court.

Credit Card Lawsuit Info: Fighting Back Against Credit Claims

If you are neck deep in credit card debt and you got abusive collectors knocking on your door, there's no better way to solve your financial problems than to instigate a negotiation rather than deal with a credit card lawsuit. However, if your creditor pressed charges already, then you have two choices, ignore the summons and wait until the court rules a default judgment against you (where you are likely to pay off the debt, with interest and penalty charges AS WELL as your creditor's legal expenses) or fight the credit card lawsuit and eliminate the debt completely.

If you decided raise a dispute, make sure you know the rules, local and state court rules, to be precise. Most delinquent debtors have no idea that they can actually defend themselves in court, even if they are just regular folks and cannot afford an attorney. The fact is, anyone can fight for themselves in court, and when it comes to credit card lawsuit, it all starts with filing an Answer to the summons and complaints you received.

Most Answers will require responses like I Do Not Have Enough Information To Answer The Question, Admit or Deny. The Answers will also include Affirmative Defenses and Counter Claims by the defendant (you). Most courts offer a Pro Se clerk where you can get the forms needed to present your Answer, free of charge.

After you send your Answer to the Summons and Complaint, now's the time to request Discovery from the creditor or the collection company suing you. The Discovery phase is a court rule which states each party involved in the credit card lawsuit has to provide documents as well as answer certain questions that are relevant to the case. If the creditor cannot produce concrete proof that you own the debt in dispute, you just might walk away with very little to repay.

You can choose to go on with the credit card lawsuit or enter to a negotiation before the trial. This is usually the last shot for both parties to settle the debt out of court. If you or the other party is adamant on going on trial, then you will receive a court date, appear in court and then object to anything that the plaintiff (your creditor's lawyer) presents in court.

Although defending yourself in court is intimidating, it is not impossible to win the credit card lawsuit just as long as you take time to educate yourself about the local and state laws mandated in your area

Dealing With Debt Collectors: Do's and Don'ts

Dealing with aggressive debt agents is tricky. However, it is important to keep a few things in check when you talk to talk to an agent. In this post, we will discuss do’s and don’ts to keep in mind when dealing with a junk debt buyer:

Don’t Divulge Personal Details

Whether it’s your address or where you live, do not, under any circumstances, tell a debt collector where you live or how to contact you! Debt collectors are always looking for ways to pursue delinquent debtors and because wage garnishment and accessing a debtor’s bank account are the easiest ways to collect money, they will try to extract certain information from you. So if, for some reason, a collector got in touch with you, don’t give any personal details you might soon regret!

Don’t Lose Your Cool

Dealing with aggressive debt collectors is very difficult but don’t lose your temper and go on a tirade, it won’t help your case at all. Keep all communications professional and cordial and let the collection agent lose his temper instead. Wait for the collection agent to make a mistake and violate the FDCPA so you can turn the tables against the debt collector and even collect a fine for it.

Do Learn The Difference Between Credit Card Lawsuit Dismissal With Prejudice and Without Prejudice

A credit card lawsuit dismissed with prejudice means that a debtor cannot press charges for the same debt again. On the other hand, a credit card lawsuit dismissed without prejudice means you may get sued for the same debt in the future. There are cases wherein a debt collector who can’t prove the debt’s ownership will offer the debtor a dismissal without prejudice. This means if you agree to settle the credit card lawsuit make sure you choose a dismissal with prejudice so the collector cannot sue you for the same debt again.

Do Keep All Communication Records

From letters to phone calls, make sure you keep a good record of all communication sent your way. Take notes of every conversation during a phone call and put everything in writing, if you came into an agreement. You can’t trust junk debt buyers to keep their word so make sure you take notes, and get them to sign the agreement.

Facing a possible credit card lawsuit and dealing with a collection agent is by no means an easy feat. However, just keep in mind the tips given above and you should be able to handle the situation well.

Will Delinquent Debtors Go To Jail For Unpaid Credit Card Debt?

For many delinquent debtors who owe a significant amount of money on credit cards, the first concern that come to mind is, will they go to jail for credit card debt? Let's get one thing straight, being sued for unpaid credit card debts will not land you in jail. However, if you ignore the summons, you might find yourself in jail for a short period.

If you have not been sued by your credit, there's no way you'd be in jail. If your creditor presses charges against you, you will not go to jail for it because 1) credit card lawsuit a civil case, not a criminal case and 2) as long as you answer the summons within the given period, the court will not release a bench warrant.

Unfortunately, a large majority of delinquent debtors choose to ignore the summons, thinking the problem will go away on its own. But it won't. So as soon as you received a summons for credit card debt, you need to either consult with a consumer debt lawyer or familiarize yourself with local and Federal laws as well as pore over information relating to defending yourself against debt claims, Pro Se.

That being said, some debtors do find themselves facing jail time because they failed to respond to the court's summons. When a credit card lawsuit starts, the debtor will receive a summons and complaints, which he needs to respond to in writing. The summons will then be sent to the plaintiff or the creditor's lawyer. The answer to the summons could also be filed in court, whichever way you choose to send the summons, make sure you do it on time.

Failure to answer the summons on time will result in default judgment being awarded to the creditor. This will give them authority to access your bank account and garnish your wages. In addition, the debtor might even shoulder the legal cost of the creditor! So if you do not answer the summons, you will lose a massive amount of cash and will continuously lose money until the entire debt, penalty charges and interest included, is paid off.

In some states, creditors who won the credit card lawsuit could ask the court to make the debtor disclose his assets and savings. Known as "Order for Disclosure", this order gives creditors the power to check all your assets and use them to satisfy the debt. So be sure to present your Answer to the summons on time, as this will save you from headaches and money once you ignore it.

Jail Time Awaits For Those Who Ignore The Summons

Many delinquent debtors who plan to ignore the summons be warned, unanswered summons and complaint could lead to a short stint in jail. The fact is, ignoring court ordered summons is one thing and blatant disobedience to a court order is another. Debtors who continuously ignore the summons despite several notifications will be held in contempt and if the court suspects that a debtor disobeyed the court order and committed contempt, he or she will receive an order to “Show Cause” which means, that the losing defendant has to show up in court and explain why he or she did not obey the court order.

Yes, debtors have very minimal chances of being in jail for unpaid credit debt but this does not mean they don’t have to worry about its possibility at all. When debtors are held in contempt, that’s when they should worry about jail time. If the debtor did not show up for the court proceedings, the court will issue a bench warrant for his arrest. The police or sheriff will arrest the debtor to make him face the judge, not because of the unpaid debt but because for failure to obey the order of the court.

From there, the judge will force the debtor to present his entire assets and money or the debtor will pay the presiding judge to be released. Note that some state courts allow defendants (the debtors) to post bail and the bail amount will be set in the judgment amount or greater.

It’s critical for credit card debtors to consult with an attorney to determine action to take when answering a summons. To avoid jail time or paying heinous amount of money on court fees, just answer the summons, consult an attorney, or if you can’t afford a lawyer to represent you in court, gain knowledge on how to defend yourself Pro Se and never, ever ignore the summons!

Defending yourself in court might be daunting and downright difficult for many but with the right information, it’s quite an easy feat. You could win the case and not pay a single cent! Whichever way you choose to solve your problems, make sure you don’t just ignore your problems. You are only making things worse and making it hard for the judge to give you a favorable judgment.

So if you are served with a summons, ignoring the court order will not help your case. In fact, it could make things worse for you. Instead of ignoring the summons, craft an Answer to the summons right away.

Debt Collectors Harassing Over Phantom Debts

Even at the best of times, junk debt buyers and debtcollectors have no evidence to prove a debt’s ownership. However, this does not stop them from badgering delinquent debtors to the point of harassing them to collect the money. In fact, according to the Star Tribune, debt collectors and junk debt buyers do go after delinquent debtors with nothing more than old statements and even bogus proof to scare debtors into paying.

Unfortunately, others resort to extreme measures, like threatening people into protective custody if they do not pay the debt.  But there are less aggressive debt collectors who turn to phone calls to connect with delinquent debtors. Whichever way your collection agent tried to get the debt to be paid, it is important to set boundaries and take action when the debtor started to harassing you in your home or at work.

The good news is, certain laws are mandated to stop abusive debt collectors from using scare tactics and threatening phone calls. If you fell victim to an abusive debt collector, send a clear warning by creating a Cease and Desist letter. This will make the debt collector think twice about contacting you other than in writing, ever again.

To protect your rights, you need to show assertiveness and don’t hesitate to put them into their rightful place when you have to. Remember, you don’t need to put up with all the threats, name calling, and incessant phone calls. Showing that you know your rights and you are prepared to face them in court when you have to is the first step towards winning the credit card lawsuit. It’s not uncommon for creditors to drop the lawsuit if they discover that the debtor knows a thing or two about consumer rights laws.

In addition, if you got served with a summons, make sure to review local and federal laws about credit card lawsuits. This will help you determine what steps you need to take in order to defend yourself in court effectively and win the lawsuit. Not a lot of delinquent debtors look closely into local court laws and state laws to determine the best steps to take when faced with possible credit card lawsuit. Don’t be part of a growing statistics by ignoring your problems completely and instead, educate yourself and create a sound plan. You will save yourself from a lot of headaches, not to mention, legal costs, if you simply conduct your own research and solve the credit cardlawsuit right away.