If you do not pay your credit card bills on time, the lender has the legal right to turn the debt over to a collection agency. But several South Carolina state laws, as well as the federal Fair Debt Collection Practices Act, protect your rights even if you owe a credit card company many thousands of dollars.
Wage Garnishments
Credit card companies, their collection agencies and other consumer-oriented lenders cannot legally garnish your wages if you live in South Carolina. State code 37-5-104 bars this practice. Thus, if a collector threatens to garnish your wages he is not only violating state law, but also the Fair Debt Collection Practices Act. Under that federal law, collection agents cannot threaten legal action if they are not able to pursue it or do not plan to do so.
Telephone Calls
Under the Fair Debt Collection Practices Act, bill collectors can call your residence or place of work unless you've told them in writing to stop doing so. If you did not demand they stop calling you, they can only legally call between the hours of 8 a.m. to 9 p.m. South Carolina time. They cannot discuss your credit card debts with other people without your consent, nor can they call repeatedly, insult you or make threats against you.
Collection Letters
Collection agency representatives can mail you letters demanding debt repayment. But they must identify their company, the original creditor's name and the amount owed. They also cannot communicate with you through postcard or place information on the outside of the envelope that reveals they represent a collection agency. You also have the legal right to demand proof that you owe the debt; if the collection agency cannot prove you owe the original credit card debt they must cease all collection efforts.
Credit Reporting
If you really owe the credit card company money, that business, as well as the collection agency, can report negative information about you to the credit bureaus Equifax, Experian and TransUnion. These reports can only legally remain for seven years from the date of the original missed payment, unless you declare Chapter 7 bankruptcy on those debts. Chapter 7 bankruptcies negatively impact credit ratings for 10 years from the date of filing. If you believe the information reflected on your credit reports is incorrect or outdated, you can demand under the Fair Credit Reporting Act that all involved businesses prove the information or remove it.
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