Credit Card Debt Collection Laws

Nothing is more stressful than being harassed by a debt collector. If you believe that you are being harassed, consult credit card debt collection laws to determine if your collectors have out-stepped their boundaries. Fortunately, even if your rights are not being violated, there are four ways that you can put an end to the endless collection calls:
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1. Question the validity of the debt.

If the debt is old or has been sold to different collection agencies, there is a chance that the agency may not have proof of the debt. To validate the debt, send a debt validation letter requesting proof that you own the debt. If the debt collector is unable to provide proof, they may be forced to stop pursuing you for payment.

2. Determine whether the debt has passed the statute of limitations.

Each state has a law regarding the statute of limitations on unpaid debts. If your debt has been delinquent for longer than the statute of limitations, a collection agency cannot purse legal action to collect the unpaid balance. Determine whether the statute of limitations has passed, and if so, send the agency a Cease & Desist letter.

3. Stop contact with a Cease & Desist letter.

Sending a Cease & Desist letter will make it illegal for a debt collector to continue calling you. However, because this limits the collector's ability to recover the debt, it may force him or her to begin legal proceedings. Sending such a letter is only beneficial if the statute of limitations on the debt has passed or if you intend to repay the debt shortly thereafter.

4. Pass the responsibility to a third party.

One credit card debt collection law allows a debt relief company or other third-party to assume Power of Attorney over a debt. The debt relief company will then contact the collection agency and let them know that they are handling the debt. When this happens, the collection agency will be forced to contact the person handling the debt, unless they are notifying the debtor of impending legal action. If you need assistance managing and repaying your debt, this may be the most beneficial option--assuming that the first two options did not apply.