While the Fair Debt Collection Practices Act (FDCPA) has created several guidelines making certain collection tactics illegal many collection agencies have chosen to ignore these rules. The tactics that strike the biggest fear in consumers are listed below.
Debt Collectors threaten a law suit if the consumer does not pay.
While the original credit card company does have an option of filing suit they do have a limited time that this option is available to them. The debt collection agency can not file suit against a consumer whatever.
If the Debt Collectors do not receive payment then they will have you arrested.
This probably strikes the most fear into people, but unfortunately for the debt collectors it is completely illegal. Debt collectors can not have you arrested for an unpaid bill. Not only is unpaid unsecured debt a civil matter, but the actual debt collectors can not file suit against you only the card company.
Threatening foreclosure of the consumer's home if their bill remains unpaid.
Debt collectors and even the original company can not take your home from you. The only way that someone can take your home is if your secured your loan with your home. Credit card debt is what is considered to be unsecured debt. This means that the card company chose to give you the line of credit that they did and it is their responsibility to get that money back. The only way that the credit card company can take any legal action is to file suit in the civil court. The debt collection agency can not do anything but call and write letters.
Many debt collectors will threaten to garnish a consumer's wages.
It takes legal action in order to garnish a person's wages. Only the government is able to make this choice. This means in order for a company to be able to garnish your wages that they would not only have to file suit, but also receive a judgment that will allow for the garnishment of wages. The card company can do this, the debt collection agency can not. You will have fair warning before this is even a possibly because you will receive a court summons or a legal letter.
For American consumers who are suffering from unmanageable credit card and other unsecured debt help is available. You can get effective credit card debt settlement from a licensed attorney at law who is licensed to practice law in your state.