Missouri Law for Credit Card Default

Credit cards can be a vital financial tool for an individual or household, but they must be used with caution, or else you risk damaging your finances. Federal regulations have protections in place that help protect individuals from being left to the mercy of credit card companies. Although some states have additional protections for credit card holders, Missouri is one state that has not enacted legislation that further defines what occurs when a credit card account enters default.

Federal Fair Debt Collection

Residents of the state of Missouri that owe debt on credit card accounts are granted protections under the federal government's Fair Debt Collection Practices Act (FDCPA). As of January 2011, no similar legislation or enhanced protections for debtors have been enacted by the state of Missouri. Under the federal act, a debt collector may contact you via telephone, e-mail, mail or fax at home between the hours of 8 a.m. and 9 p.m. You can ask the debt collector to stop contacting you unless the agency decides to take specific legal action on the debt. The act also prohibits a debt collector from engaging in harassment, such as making false or profane statements, or threatening to have you arrested.

Statute of Limitations

Each state has its own laws governing the statute of limitations, or time limit after which a legal claim is nullified, for the collection of debts. In the state of Missouri, the statute of limitations on open accounts, including credit card accounts, is five years. The statute of limitations for written agreements contemplating a payment is 10 years; and for the sale of goods under the Uniform Code Council, a transactional standard used by the grocery industry, the statute of limitations is four years.

Claiming FDCPA Violations

If a debt collector violates the Fair Debt Collection Practices Act, you can make a claim and possibly receive damages from the debt collector. Damages that are recoverable from a debt collector can cover any actual losses and any court or attorney's fees. Claims must be made within one year from the date of the actual violation. Keep copies of any correspondence that you believe constitutes a violation of the FDCPA; if the violation happens during a telephone call, write down notes about the conversation immediately afterward and include the date and time.

Fair Credit Billing Act

Credit card accounts in the state of Missouri also fall under the governance of the federal Fair Credit Billing Act, which gives credit card holders a way to dispute unfair or suspicious charges. Under this law, accounting mistakes, failure to mail your credit card statement to your permanent address or a charge made for an item you did not accept on delivery count as billing errors. Notify the creditor of the error within 60 days of receipt of the bill; within 90 days of receiving notification, the creditor must drop the charge or explain why it has not been dropped.