Credit Card Debt Collection and Card Holder Rights

When a credit card account goes unpaid for a significant length of time, the credit card company often sells the debt to a debt collection company or an attorney who specializes in collecting unpaid debt. Whenever this happens, the debt collectors must comply with the Fair Debt Collections Practices Act (FDCPA), a federal law that applies in all situations in which a debt collector tries to collect on unpaid consumer debt.

FDCPA

The Fair Debt Collections Practices Act grants consumers specific protections whenever dealing with a credit card collector or other kind of consumer debt collector. Collectors cannot use harassing or threatening language when trying to persuade you to pay a debt. They cannot, for example, threaten to have you arrested if you do not pay the debts, nor can they call you before 8 a.m. or after 9 p.m.

Validation Notice

If a debt collector calls you or contacts you to try to collect on unpaid credit card debt, you have the right to demand that the collector send you written proof that you owe a debt. Known as a "debt validation" demand, you must send the collection agency a written demand within five days of first being contacted by the collector. If the collector cannot prove that you owe the debt, it cannot continue to contact you.

Cease and Desist

Under the provisions of the FDCPA, consumers have the right to demand that all debt collectors stop contacting them in an attempt to collect the debt. For example, you can send a debt collector a written cease and desist letter informing the collector that you no longer want it to contact you. The collector must comply with any such demand, though it may choose to sue you in court to try to collect the debt.

Violations

Whenever a debt collector violates the terms of the Fair Debt Collections Practices Act the consumer whose rights have been violated can file a complaint against the collector and sue the collector in court, even if the consumer has not experienced actual damages. You can contact your state's Attorney General's Office or the Federal Trade Commission to file a complaint, and you can sue the collections agency in your state court.