What Can Credit Card Companies Do If You Default
Author: Candy Herethy
Posted: Mon Jul 05, 2004 7:24 pm
Post subject: What Can Credit Card Companies Do If You Default
4/2/2002 11:30 am CDT
I would like to know what a credit card company can do if you don't make your payments. Can they seize your house or garnish your paycheck? Please advise. Any advice would be greatly appreciated!
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Author: Dani
Posted: Mon Jul 05, 2004 7:26 pm
Post subject: What Can Credit Card Companies Do If You Default
4/2/2002 1:25 pm CDT
To lien your house or to garnish your paycheck they must get a judgement against you from the court. Most companies will not go after you if the debt is small and not worth their time - they usually sale it to a collection agency and charge it off.
If the debt is not yours you can send a validation letter to the creditor (or collection agency) that is handling the debt. They then need to prove to you that the debt is, indeed, yours. If they do not respond within 30 days of the receipt of the validation letter (sent certified mail) then you can mail them an estoppel, which says they contact you to collect on the debt, because they did not send proof that you owed the debt.
On the other hand, if the debt is yours it is always a good idea to pay it. There is no use to worry yourself sick fretting if the creditor can garnish your wages or lien your home.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Mon Jul 05, 2004 7:24 pm
Post subject: What Can Credit Card Companies Do If You Default
4/2/2002 11:30 am CDT
I would like to know what a credit card company can do if you don't make your payments. Can they seize your house or garnish your paycheck? Please advise. Any advice would be greatly appreciated!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Dani
Posted: Mon Jul 05, 2004 7:26 pm
Post subject: What Can Credit Card Companies Do If You Default
4/2/2002 1:25 pm CDT
To lien your house or to garnish your paycheck they must get a judgement against you from the court. Most companies will not go after you if the debt is small and not worth their time - they usually sale it to a collection agency and charge it off.
If the debt is not yours you can send a validation letter to the creditor (or collection agency) that is handling the debt. They then need to prove to you that the debt is, indeed, yours. If they do not respond within 30 days of the receipt of the validation letter (sent certified mail) then you can mail them an estoppel, which says they contact you to collect on the debt, because they did not send proof that you owed the debt.
On the other hand, if the debt is yours it is always a good idea to pay it. There is no use to worry yourself sick fretting if the creditor can garnish your wages or lien your home.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 1:37 PM
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