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
Always check into debt consolidation Organizations
I do not want to tell my saddle, but I used to cut the credit card trap. I had a lot of credit card debt that had become out of control. We made stupid decisions when I was young and lead to a burden of debt.
No matter how hard I tried, my debt still kills my happiness. I decided to find consumer credit counseling services. And hope this can help me get out of debt credit card. After completing the research, I give the floor to one of the advisers to register with their program. Everything seemed great. In fact, they advised me that the creditors of our credit report in a more positive since we have now affiliated with CCCS.
Unfortunately, this is not the case. Each month, we made our schedule for payment of our debt rhymes and began to decline. About 18 months later, we decided to look into buying a house. When we applied for the loan, much to our surprise, the mortgage company advised us that to be a member of the CCCS was a step above bankruptcy. It was like receiving a kick in the head. What happened to the positive aspects of being members of the CCCS.
We were not the case, close to bankruptcy. It was just a springboard to help us get out of debt. We do not receive phone calls harassment or recovery. Now, we have been marked as a bad risk. This has been devastating. I immediately contacted CCCS and to my surprise to discover that our advisor was no longer affiliated with this office. We immediately spoke with a counselor and explain what has been said about us. They were not helpful in any way. At that time, I decided to take matters into my own hands. I wrote a harsh letter to our association with CCCS J1scontimiing their organization.
Then, my husband and I sat down and calculated what should be paid in oil and how long a period of time. We then started to examine the credit reports to see what negative information and it was about how we can repair them.
After one year, we were able to repay our debt (our own) to repair the negative information on our reports and our confidence in purchasing homes. So we were able to turn a horrible situation in a felicitous.
If it were not for the customer service representative at the mortgage company, we never experienced a terrible impact CCCS could do for our future credit.
A word to the wise, always check the debt consolidation organizations very carefully and check with credit agencies report what effect a consolidation of debt agency on May your future credit. If this is your only hope, and then participate in a debt consolidation. But be aware that if they make promises on your credit history from negative to positive, then they are frauds.
This is just a small piece of my saga continues with the credit.
When Credit card scammed cheat you
Credit repair Companies always claim that they can reduce your credit problems immediately this is illegal, and if you’re not careful you could take your body into jail. This is scams. But you don’t confuse with the good credit counseling that truly help you to eliminate credit card debt. Scammer always have the sign that let you know about they are scamming. In other words, you are scammed. Two often sign have shown below:
• This fly-by-night, rip-off artists can’t do anything for you that you can’t do for yourself.
• They’ll probably charge you anywhere from $50 to several thousand dollars for something that you can get for free or just a few bucks.
“In many cases,” says the Federal Trade Commission (FTC), “this Scammer takes your money and does little or nothing to improve your credit report. Often, they just away.” Example: Kaezy make credit card debt to $20,000 on five credit cards. A credit repair clinic “consolidated” their debt, reduced their total monthly payments to only $350 per month, and told that it require only four year completing payment. Then they exciting because they will get out of the debt. They send their payments to the credit repair clinic—but lately Kaezy’s been noticing late payment charges on her monthly statements. That is credit repair scam do nothing for them.
“Don’t worry, we’ll take care of it,” is all the company will tell Kaezy and her husband. But they still didn’t do anything. You may follow these tips for eliminate your credit card debt:
• Only three things can improve your credit record: Time, a conscientious effort on your part, and a debt repayment plan.
• Say “no” to any credit repair outfit that suggests you invent a “new” credit identity by applying for an Employer Identification Number (EIN)—which businesses use to report financial information to the IRS—to replace your Social Security number (SSN). The trick is called “file segregation.” It’s not only frowned on by the federal government, it’s also a federal crime to obtain an EIN from the Internal Revenue Service under false pretenses. Plus, you could he prosecuted for mail or wire fraud.
• Beware of credit repair mechanics who ask you to fork out money for their services before they are provided. That’s in violation of the Credit Repair Organizations Act, which requires those companies to tell you in writing about your legal rights. I hey re also supposed to give you a contract that spells out exactly what services they are to perform, how long it will take to get results, and the total cost. Even a “money-hack guarantee” won’t protect you if the company is shady.
“Why spend a lot of money for something that you can do yourself in 30 minutes?” If you want any advice for reduce your debt. The nonprofit Consumer Credit Counseling Service, with 1,440 locations nationwide, is a good place to start repairing your credit. It will guide you in fixing your credit report and, for little or no fee, negotiate with creditors and set up a payment plan you can afford. Call 1-800-388-2227 for the location nearest you, or for on-line counseling.
Credit card debt trouble: Please contact credit agency
Do you have a problem that unable to pay your credit card debt?—If so, then your credit card company will sell your debt to a collection agency. If this process occurs, beware, your debt may increase because of fees onto your bill that collection agency will charged you. Debt of $2,000 may become $3,500 in three month. I want to suggest that the first thing you should do is get a copy of your credit report from nationwide credit agencies. You can get it online via the internet. Of course, they will charge a little fee. Credit agencies often get your credit history information from your bank.
The information of each credit agencies are below:
• Equifax Credit Services, PO Box 740241, Atlanta, GA 30374 toll-free: 1-1400-685-1111; www.equifax.com
• Trans Union, PO Box 2000, Chester, PA 19022; toil-free: l-800-888-4213; wwwtransunion.com
• Experian, PO Box 2002, Allen, TX 75013; toll free: 1-888-397-3742; www.experian.con
When you get a copy of your credit report, Check and review it, if something errors, you can claim it. And if all correct, you have to review when credit trouble began. When you can identify it already, try to negotiate restructuring payment schedule program with your bank or Credit Card Company. It’s important to let them know that you are seriously and need to pay back your debt. However, your default history of debt can’t undo – default is still default, but if you can pay debt in new schedule, surely it help you to be able to get credit in the future.
In another way, you should contact to a credit advisor, either, profit or non-profit advisor – it’s up to you. You can find the list of credit advisor by search engine www.google.com or “yellow pages”. Credit advisor often suggest you to consolidate your credit card debt and find a lower-interest rate loan for you.
