Credit Cards

Effects and Consequences of Credit card recovery agent’s harassment

Ignoring credit card recovery harassment will not make the situation go away and the results will follow you for years. Ideally, it’s best to work out a payment plan with your creditors to pay off the debt. However, if you default on credit card debt, it will affect your credit, overall debt and you may even end up with a lawsuit.

Immediate Consequences to the Consumer

The initial impact of defaulting on a credit card is late payment fees and interest rate hikes. Late fees will continue to grow and will be applied to your balance as long as the account is open. The late fees combined with higher interest rates results in soaring monthly payments and further debt. Unfortunately, individuals who were unable to make the minimum payment due before defaulting find themselves in a worse financial situation after the fact. As of February 22, 2010, your interest rate will only go up if you are more than 60 days late on your payment.

Creditors and Collections

If you’re only a few days or weeks late, the creditor will try to contact you by phone and possibly by mail. If you are unable to make payments, or a payment plan cannot be reached within a reasonable amount of time (usually three to six months), the creditor will refer the account to an outside debt collection agency and close the account. A debt collection agency will try to get as much of the debt owed and may work out a payment plan with you.

Credit Score Effects

Late or delinquent credit card payment harassment have one of the most detrimental effects on your credit score. If your credit score drops dramatically, other lenders may increase your interest rate or decrease your available credit. Additionally, being approved for further credit may be more difficult.

Credit Card Harassment Laws and Legal Action

If your account is seriously delinquent or you cannot work out a payment plan with your creditors, the credit card company harassment or a collection agency may bring a lawsuit against you. If a judgment is brought against you in court, your wages may be garnished or a property lien may be ordered.

Other potential consequences to the consumer include:

  • The case of your defaulted credit card loan may be handed over to a collection agency
  • The collection agency will be entrusted with a responsibility to collect the credit card debt
  • You will be charged the cost associated with the collection of your credit card
  • You will be liable to pay court costs and attorney fees other than collection fees
  • You can be dragged to court in case of your defaulted credit card
  • The amount that your wages is garnished with may be limited by Federal law
  • You may face the interception of your state and federal income tax refunds
  • Part of your Social Security benefit payments may be withheld by the Federal government
  • The defaulted credit card will negatively affect your credit record and make you suffer its detrimental effects
  • You will find it difficult to obtain a mortgage loan, an auto loan and even credit cards
  • You will be denied deferments, federal interest benefits and renewal of your professional license

Harassment and Scare Tactics from Collection Agencies because of their Unfair Collection Practices

You will be moved from the frying pan to fire when the collection agency will begin haunting you like hounds. The situation becomes worse when you fall prey to their unfair debt collection practices. They will trouble you making credit card harassment calls now and then. They are very likely to publicize your defaulted loan status that will in turn, make you suffer disgrace on your social reputation and feel embarrassed among your neighbors, friends and relatives. Sometimes, their approaches for debt collection go far to be abusive and offensive. The collector not only violates the Fair Debt Collection Practices Act but also your consumer rights to be treated fairly. Contact us and we will protect you by means of legal support from the embarrassment and harassment in the hands of the debt collector.