Debt Consolidation

Things You Must Know About Credit Card Collection Accounts

When it comes to dealing with credit card collection accounts, there are a few things that you need to be well aware of. These accounts are the ones where your original lender has failed to collect the debt and so they have transferred the accounts to debt collection agencies. Debt accounts with collection status are some of the worst entries that can appear on your credit report. It will cause a very serious dent on your credit worthiness. The biggest problem is that these types of negative entries stay on your credit report for several years. But, the list of problems does not end there. If you have collection accounts in your name, you will also be receiving repeated harassing phone calls from debt collectors. Therefore, it is very important for you to understand how having such accounts can affect your financial life and what your legal rights are when it comes to dealing with debt collection agencies. Following is a brief rundown on it.

Reasons For Lawsuits

Since there is a specific statute of limitations applicable for each kind of debt, debt collectors when fail to recover debts, they go ahead and file a lawsuit against the debtor before the statute of limitations passes away. It means by choosing to ignore the repayment on credit card collection accounts, you are actually inviting more troubles, as very soon, you may receive a notice notifying you that a civil lawsuit has been filed against you for debt payments. The only relief is that nonpayment of debts because of poor financial situation is not considered as a criminal offence. Therefore, there is no way you can be sent to jail imprisonment for nonpayment of debt. As soon as you receive a court notice regarding the lawsuit, you must immediately file a response. If you do not respond to that notice in writing within sixty days after relieving the notice, the collection agency will by default win the lawsuit. On the other hand, when you file a response with the court that you are ready to appear for the court hearing but you request the court to ask for p\roof of payment from the collection agency first. The court will send the request to the collection agency. If the agency fails to provide the proof of debt within one month after receiving the notice, the lawsuit gets dismissed automatically. Even if you know that the debt accounts are legitimate ones and the statute of limitations has also not passed yet, you are still advised to file such request. If you are lucky enough and the debt collectors do not provide necessary documents to prove that the debts belong to you, you can easily get rid of your debt problems.

Debts That Do Not Belong To You

If you are receiving collection calls for credit card collection accounts that do not belong to you or where the statute of limitations has already passed, you have the right not only to file a dispute with the court, but also to get all such negative information related to those accounts removed from your credit report. As soon as the debt collectors receive your letter where you provide proof that the debt accounts no longer belong to you or that you no longer can be held responsible for the payment on those debts, they must immediately cease all collection practices related to those accounts. If they continue to harass you, you can file a complaint with the Federal Trade Commission.

It is also very important for you to keep in mind that even if the credit card collection accounts are legitimate ones and you are unable to repay the outstanding balance, it does not mean that you must tolerate the abusive behavior of debt collectors. The FDCPA (Fair Debt Collection Practices Act) applies to every state of the United States of America, as per which collection agencies cannot harass you in any manner.


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