Collections and Credit Card Defense
Collections and Credit Card Defense are two areas of law at which our firm has a great deal of experience. With the collapse of the economy and he rise of delinquent debt, having an attorney to protect your interests has become vital.
We have seen a number of unsavory collection agencies use unethical and sometimes illegal means to attempt to collect debt. Such activities are illegal and contrary to the rights afforded you under federal and state laws, including the FDCPA. Often times, these agencies purchase delinquent debt for pennies on the dollar and then use any means possible to collect from the debtor (you!).
Another scenario that we see is where the first collection agency sells the debt again to another agency, and so on, making it difficult to ascertain whether you actually owe any debt to that company or to any company.
Collections and Credit Card FAQ's
I have defaulted on a Credit Card account, what can happen?
A couple of things will occur. First, you will be contacted by the credit card company's collections department. If you do not pay, your account will be charged off after 6 months. Your account will then either be placed for a lawsuit or will be assigned to an outside collection agency.
Will I get sued by the Credit Card company?
A lawsuit will definitely occur at some point if you do not pay. It may come from the original credit card company, or, more likely, from an outside collection agency
Do I face jail time?
NO. Failure to pay a credit card account will not amount to jail time.
Can my wages be garnished?
Your wages can be garnished in Florida if you do not qualify for any exemptions.
Can my bank account be garnished?
Perhaps. If the credit card company or collection agency sues you and wins, and if they know where you bank, they may be able to garnish your bank account. Remember, they must prevail in a court of law before this can happen.
Can they sell my personal property?
Same answer as above. If the credit card company or collection agency sues you and wins, they may be able to levy on your personal property.
What else can they do?
They will place a mark on your credit. They will sue you at some point. If they win, they may attempt to garnish a bank account or levy on personal property. They may place a lien on your home.
Will a judge order me to pay more than I can afford?
Judges do not order you to pay anything. The court process (lawsuit) simply determines how much you owe, if anything. Payments will be voluntary on your part, or, the credit card company can begin execution proceedings to collect.
Can they threaten me?
For the most part, NO. They can threaten a lawsuit, because that is within their legal rights.
Should I negotiate the debt myself?
Maybe. I would always recommend a consult with a consumer attorney first. There are times that I recommend to a client that he/she negotiate with the credit card company. On the other hand, I have never recommended that a client negotiate with a collection agency. The collection agency lawsuits are often legally insufficient and can be beaten in court.
What should I do?
Hire a knowledgeable consumer attorney to at least review your case. You have a few options here. Negotiation is one option. Bankruptcy is another. Often times, though, my advice is to let the lawsuit happen and then defend it. Our success rate in defending these types of cases is much higher than you would believe.
