Credit Card collection lawsuits are rapidly increasing in Pennsylvania, especially with the down economy. The volume of phone calls and emails that I receive on this topic is astounding. What I have discovered is that many people do not know their rights or how to handle these situations. I can say with certainty that contacting a Consumer Attorney is a very good move. Unfortunately, many people call me after the credit card company or collection agency has a judgment against them. Had they called sooner, I might have been able to help them.
Credit card lawsuits are instituted on the basis that you have failed to pay (defaulted) on a credit account. Certain credit card companies like Capital One will simply file a lawsuit against you. Others will sell your account to a collection agency for pennies on the dollar. The collection agency will then try to collect from you, and will then file a lawsuit if you do not pay the alleged debt.
It is important to understand your rights and obligations in this regard. Let’s start with the most important question of all "How long do they have to sue me"? In Pennsylvania, the answer is typically four (4) years from the date of the default on the account. The date of the default is typically 30 days after you have made your last payment on the account. It is important to know that this doesn’t mean that they cannot sue you after that time. I tell my clients that anyone can sue you for anything at any time. The key is that you have to present the proper defense to the lawsuit. Submitting a statute of limitations issue is presenting a viable defense.
The next important right that you have is to know how much you allegedly owe. A credit card company or collection agency must be able to document, with absolute certainty, the exact amount of principle, interest, late fees and so forth. If they cannot document it then they are not entitled to collect on it. The way that they typically would document this is to provide a copy of every account statement that you have had, from inception of the account to the current time.
Another important right is to know who exactly is entitled to sue you. This is often an issue where a collection agency is involved. A collection agency typically does not have the right to sue you unless they have been "assigned" that right. This assignment would come in the form of a written document from the original creditor to the collection agency and would list your specific account for sale. Without same, a collection agency does not have the right to sue you in a court of law in Pennsylvania.
An Overview of Credit Card/collection Agency Lawsuits
Credit Cards for Easier Payments
First and foremost is the annual fee that credit card companies charge. The annual fees may range from $25 to more than $100. The fee depends on the type of card you choose. To attract customers banks sometimes waive the first year annual fee and often offer a one-time membership charge. You should also find out beforehand the other type of fees that the company charges - balance transfer fee, over-the-credit-limit fee, credit-limit-increase fee and others.
The grace period to make payments is another important consideration. The grace period is normally a certain number of days from the statement date. Payments not made within the grace period will incur late payment fees.
Most credit cards allow cash advances from ATMs. For cash advances, a cash advance fee is charged, which is normally a percentage of the cash withdrawal made. Most cards do not allow any grace period for cash advances and interest is charged from the day of the cash advance.
Credit cards may be of many types - silver, gold or platinum. The credit limit normally depends on the type of card you choose. The type of card offered depends on your income level. Cards with higher credit limits normally attract higher fees but also come with additional features. Additional features may include discounts on purchases, money back on frequent use, accident insurance etc.
It is important that you carefully read the application form before signing on the dotted line. An application does not imply acceptance by the company. Credit card processing takes time and your personal details will be thoroughly checked before your application is accepted.
It is always advisable to make purchases within your financial limits. However, there are many people who face credit card debt problems. The best way to eliminate these debt is to enroll in a credit card debt consolidation program. Debt consolidation programs help reduce the debt burden and allow repayment with easy monthly installments. Do a thorough research and check the credibility of the company before choosing a debt consolidation plan.
Ways to Negotiate Credit Card Debt Settlement
Facing problems paying your credit card bills? Well, this easy-to-read guide will help you deal with your credit card debts in the most efficient way and faster than usual.
There may be several causes for getting into debts that include: poor income, divorce, medical expenses, poor money management, no savings, and many more. However, one cause that is consuming a large segment of the American population and continues to increase at an alarming rate is credit card bills.
With plastic money being introduced to people, spending has become easier than it ever was. Credit cards are a service offering of all finance companies that allow consumers to spend more so that they can earn more. And unfortunately, people usually tend to fall in these traps very easily and later fail to pay their debts.
Reasons to Consider Credit Card Debt Settlement
Once you are in a debt trap, paying the minimum amount do not help you much in paying off your loans, rather you realize that you have paid a lot more than the amount you had initially borrowed. Remember, these credit card companies make a yearly turnover of multimillion dollars, which is only made possible with your minimum payments.
If you are already in credit card debts, and your bills are keeping you up all night then stop worrying as it won't help you come out of the whirlpool that you are into. Instead, start working on your problems, and put your finances back on track. As carrying on with your minimum payments will be only helping the companies and not yourself, the best way to go about it is debt settlement.
When considering debt settlement, however, your aim should be to get the best deal possible from your lenders. It all depends on your creditors whether they want to agree on a settlement plan, but if you have an expert negotiator on your side then you are sure to strike the best deal.
Can You Do It by Yourself?
Yes, you can seek a credit card debt settlement with your creditors. Many professional debt negotiators can cut the credit card debt of their clients in half or even more. You might achieve a similar result of settlement if you know how to deal with your credit card companies.
You will need to have some cash in hand. This will help you negotiate an affordable settlement with the credit card company. Once you have the cash, contact and talk to a collection agent at the company. Politely tell them that you want to settle your debt and you have x amount of money to offer them. Depending on your creditors and your negotiation skills, there is always a chance that they are able to offer you a discount.
Should You Hire a Professional?
A professional will help you negotiate with your creditors and reduce your payments by 30-60% depending on your financial state. They can not only help you lower you debt payments but also eliminate your late fees, in many cases. As these attorneys have had firsthand experience in dealing with such cases for years they are likely to help you deal with your creditors better.
There are several debt settlement companies that promise to help you get out of your debts in the most efficient way possible. But, among the lot there are fake companies as well that are after your money but don't have the slightest intention to help you reduce your payments. So do your research and then go for a reputed company for genuine assistance.
Overall, if you see your credit card bills piling up on your desk and you are in a big financial mess, it's high time that you go for credit card debt settlement. Reach out for professional assistance and successfully achieve your debt-free goal. And next time you use a credit card your aim should be to use it wisely, so that you benefit out of the credit card company instead of them benefiting out of you.
Can I Negotiate Credit Card Debt Reduction
Are your struggling financially have you asked yourself...Can I Negotiate Credit Card Debt Reduction? With a large number of online programs it can be really difficult to find out the good ones from the bad ones. And some of these companies will give you a better interest rate or even a better payment plan. But how can you do it?
Can I Negotiate Credit Card Debt Reduction...Here's some facts and tips.
>>> Begin by searching online for companies that offer these types of programs, you should be able to find quite a few. Try adding the word [review] with your search and read what other people in your situation are saying and doing. After spending some time doing your research you will have weeded out any companies that you should avoid.
>>> Once you have completed your research you will have a list of reputable companies. Now you can start to compare each program and what there offering. Be sure to note the interest rates being charged and watch for fees. Make a list comparing each companies offerings and then you can choose which ones you're going to contact.
>>> If you're just trying to deal with your current card company in order to make the repayment interest and terms easier to manage make sure you're totally honest with them. When you're talking with them make your intentions clear and what they need to do if they're to get their money back. Be sure to do this in writing and keep copies for your record.
You will find that these companies will be eager to work with you because most of these types of debts are unsecured and they're counting on you to repay them. It's better for them to get less interest then to have you go bankrupt and not get any of their money back. Can I Negotiate Credit Card Debt Reduction?... You bet you can!
Legally Erase Credit Card Debt
With the crumbling economy and the unemployment rate climbing, many Americans are faced with the prospect of filing bankruptcy to avoid paying their debt. Before you call up a bankruptcy attorney and pay thousands of dollars for their services, you need to look into credit card resolution instead of bankruptcy.
There are a number of ways to legally erase your credit card debt without declaring bankruptcy. In fact, many of the systems available to you can slash your debt by up to 90%! These programs work, you only have to know where to find them.
Who Qualifies for Credit Card Resolution Programs?
That's the great news! Anyone with any amount of debt can qualify for these programs. Keep in mind, that these programs not only slash your debt, but they also can drastically reduce medical bills and other unsecured debt.
Unlike government programs and grants, there are no lengthy forms to fill out of hoops to jump through. You only need to know how to find these well guarded systems.
How Much Does It Cost To Legally Erase Your Credit Card Debt?
The cost of using one of these debt reduction programs varies based on your debt amount and the system you choose. Here are a few of the options you have:
* Do It Yourself Credit Card Resolution System: These programs cost between $50 and $100. Each of these programs outlines the steps you need to take and walks you through the process step by step. In addition, the best programs we've found have letters and forms pre-written for you by debt attorneys. These programs require a little extra work but are a much better option to choose instead of bankruptcy.
* Debt Consolidation Companies: There are many companies who provide services to clients that bundle all of their debts together into a more affordable payment. Keep in mind that these systems do not slash your credit card debt, but rather "repackage" it into a different loan with a better rate. While this type of system can be beneficial to certain clients, the idea option is to use a system that legally erases your debt forever. Debt consolidation companies' fees can vary from a few hundred to a couple thousand dollars.
* Debt Settlement Companies: Using one of these companies is the preferred way to legally erase your credit card debt instead of bankruptcy. These companies work on your behalf to negotiate with your creditors to drastically reduce and eliminate your debt. A debt settlement company can charge anywhere from under one thousand to over three thousand dollars. While that may sound like a great deal of money, you need to ask yourself how much you would pay to eliminate $10,000 - $30,000 of debt. If you're willing to pay a fraction of what you owe to slash your credit card debt, debt settlement is the way to go.
How to Get Started:
Getting started with one of these programs is easy. Simply gather up all of your unsecured debt statements and total up your overall obligations. Calculate your current monthly payments and figure out what it would be worth to eliminate that debt forever. If you're only willing to pay $50-$100, check out a do it yourself credit card resolution program.
However, if you current obligations are significant and you want a professional to help you erase it quickly, look into a debt settlement company to help you out.
The Best Credit Card Debt Settlement
Getting into financial debts is like putting on weight. It is easy to get by leading a carefree life but is quite a difficult task to get rid of. Although losing weight can be a difficult task it is not impossible and neither is getting out of debt traps. You must have heard the old adage, where there is a will, there is a way and this is exactly what it takes to deal with financial debts and you will see yourself out of it sooner than you expect. Discipline, hard work, and right help are all that you need to get your finances back in control.
Credit card debts are a common problem for millions of Americans today. This problem is mostly faced by immature young individuals who go through major dilemma in reasoning their temptation of easy credit. However, it is not only young people who are facing this problem but there are other segments of the population as well who come across similar issues. There are many people, be it individuals who have suffered a job loss, injury or have spent more than they could afford, see their credit card bills growing every month. Most of these people can only afford to make the minimum payments required or in some cases, skip payments. This definitely leads towards growing credit card dues, which makes their situation even worse. And remember, the credit card industry makes a yearly turnover of multi-million dollars, which is made possible by your growing credit interests and minimum payments.
Well, the good news here is that there are ways to counter such financial issues. One of the most common ways to deal with the situation is to go for debt settlement. Let us take a quick look at what debt settlement is all about and how does it help in overcoming the credit card debts.
What is debt Settlement or credit card debt settlement?
Debt settlement is as old a concept as debt itself. It is a completely ethical, logical, and legal method to get you out of debts. This is a way in which you can avoid bankruptcy and come out of those debt traps laid by the credit card companies.
In case you have major credit card dues that you cannot afford to pay, then banking on credit card debt settlement is the best thing to do. Making only minimum payments do not do much to help your situation, rather you take decades to pay back all your debts and probably end paying ten times more than what you had borrowed initially. Debt relief can not only reduce your payments by 40-60% but also cut down your repayment time to 3 years or less.
So to conclude, if your credit card bills are keeping you up all night, and you just can not think of any way to get out of your debts, then considering credit card debt settlement may be a good option, this way you can not only save on the interest but also prevent yourself from filing for bankruptcy.
Debt Settlement Affect My Credit Score, is it true?
It seems as though individuals and families seeking some form of debt relief are seeing a significant amount of information regarding credit card debt settlement. Obviously, this form of debt relief (like all others) has some critics, which leads to at least a little skepticism amongst consumers who might be considering debt settlement.
One of the most common questions that are asked of debt settlement is whether or not it will have a negative impact on your credit score. The answer is yes, no and maybe. You see, each person's situation is different, so depending on your own personal financial status, credit card debt settlement may have a negative impact on your credit score.
If your bills are always paid on time each month, and your credit score is relatively high, I can say with a great deal of confidence that your credit score will be compromised by the time your accounts are settled. Most people who are paying their bills on time, but are seeking debt relief, do so because they tend to find themselves borrowing from one creditor to pay another in an effort to keep their finances afloat each month. Unfortunately, by doing this you're really not keeping your finances afloat; rather, you're getting yourself deeper in debt. Your credit score might appear to be okay, but overall your finances are lacking the type of stability that is needed to truly stay afloat. In situations like these, people notice that their credit score may fall below 700, sometimes dipping to as low as 500 during the delinquency period that is required to negotiate with creditors. After all of your accounts are settled, and reflecting zero balances, however, you'll see your credit score increase and reach a level which is considered to be high enough for credit approval on an auto loan or home mortgage within 9-12 months.
Those individuals whose accounts are already delinquent will likely not see their credit score negatively impacted due to debt settlement. Rather, those who fall into this category will find that their credit scores will increase significantly after all of their accounts are settled and reflecting zero balances. Let's face it - delinquency is what really impacts a credit score, so by remedying this delinquency, whether through full payoffs or reduced debt settlement payoffs, your credit score has nowhere to go but up.
In summary, depending on your personal financial situation, your credit score may be negatively affected by debt settlement, or this process can have a positive affect. Again, this all depends on your own financial situation. Debt settlement has helped many individuals, families and small businesses to avoid bankruptcy and/or years of paying high interest to various creditors.