Collection Practices

• Credit card collection practices are regulated by the U. S. Federal Trade Commission, which acts as a consumer protection agency. Through the Fair Debt Collection Practices Act of 1978, consumers have certain rights when dealing with collectors, who can take the form of an agency, a lawyer or a company. Consumer rights under the act include only personal debts, such as credit cards, medical bills and mortgage. The act doesn't cover doesn't business-related debts or obligations. When a credit card collector violates any of the terms under the act, consumers have the right to sue for damages caused by a collector's actions.
  
  

Notification Rights

• In many cases, it's not uncommon for credit card collectors to contact a person on a weekly or even biweekly basis. Collectors may also attempt to reach a person at his place of work. Consumers have the right to request no further contact provided the request is submitted in writing. By law, collectors must stop any further attempts at contact except to notify a person of an upcoming proceeding, such as a lawsuit, or to state that no further contact will be made. Both verbal and written requests apply for calls made to a person's place of work in cases where an employer prohibits personal calls.
  
  

Collection Methods

• The Fair Debt Collection Practices Act sets certain limitations on the methods collectors can use to contact a person and the type of conduct that's permissible. By law, collectors can only discuss a debt with the person listed on the credit card account or with the person's lawyer or spouse. Collectors can however contact other people to find out basic information about the debtor, such as place of work, home address and home phone number. When discussing outstanding accounts, collectors cannot use harassing, threatening or profane language. Collectors cannot make false claims regarding their identity, the amount owed on the debt or misrepresent any procedures or correspondence sent in terms of legal versus nonlegal actions. The law also prohibits collectors from inflating the amount of a debt with extraneous fees or interest charges unless the credit card contract allows for additional charges.
  
  

Garnishments

• Collection agencies can sue credit card account holders for unpaid balances. In cases where a court rules on behalf of the company, the collection agency can obtain a garnishment order which requires a person's bank or place of work to withhold monies for repayment. Both bank account and wage garnishments are only permissible through a court order. Account holders do have the right to contest the claims made in a lawsuit; however, they must submit a response to the court summons within the stated period of time in order to maintain their consumer rights. Garnishment actions for credit card debt cannot be taken in cases where federal benefits, such as Social Security disability, Supplemental Security Income or veterans benefits, provide a person's sole source of income.