April 8,2009
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Buffeted by Credit Card Debt Collectors?, Pt.3
Get the goods and take your own action.Unreasonable threats: Another very routine practice is to alarm credit card debtors with threats which are beyond a collector's authority when trying to collect payment. Of course, they're going to portray the down side but, aren't allowed to make threats that they can't or don't intend to legally enforce. Almost 12,000 consumers experienced this last year and took the trouble to report it to the FTC. Threats of going to jail for not paying credit card debt are not allowed unless the agency has the authority to bring this about and plausibly would take such action. There is no ‘debtor's prison' and it would be extremely unlikely that a collections case could ever bring this about, just over non-payment of a credit card debt.
Even garnishment of wages, financial holdings or property over credit card debt requires a major lawsuit which a judge must rule on. That's a very expensive and tenable position for a collection agency to embark upon just for unsecured debt like credit cards. Many states don't even allow such lawsuits. Some states are so strict on these practices that a collector isn't even allowed to make threats about destroying a credit rating.
Do something: So, here's what you can do about it. Like in the last section, when confronted by a credit card debt collector, announce your intention too record the conversation. Very commonly, you will be asked to allow the collector to record it fir themselves and you are asked to agree. So, there is little defense against you're doing the same. That failing, again like in the last section, take out a paper and pencil and jot. It's okay to draw repeated remarks from an aggressor to get a cross-section of what that person means to say. Make sure you get that person's name early on, before things get ugly. Otherwise you'll have difficulty getting an honest answer.
Keep in mind that all states differ on consumer protections. States like New York, Connecticut, Pennsylvania, the Carolinas and Texas provide some of the best protections. Pennsylvania has even created a ‘Credit Card court' system to provide more amicably ways to resolve credit card debt. If you feel you have a case, consult with your state's attorney general's office of the consumer regulatory agencies to find out. Then, follow their advice.