As many Arkansas residents know, credit cards are great to have on hand whenever the urgent need for extra cash arises. On the other hand, credit cards can also cause problems such as incorrect charges that may lead to harassing calls from collection agencies. Credit card users, however, have certain rights regarding verifying and disputing credit card debt that may assist them as they deal with the problem.

Under the Fair Debt Collection Practices Act, credit card users have a right to dispute a debt by requesting the company to verify the debt. The action must be done no later than 30 days following the collector’s bill. Otherwise, the collection agency is not obliged to verify the debt and can continue requesting the payment by telephone.

If the consumer sends the request within the 30-day period, the collection agency is required to stop the collection process until the request is fulfilled and the consumer receives verification of the credit card debt. In most cases, the debt collector will contact the consumer to notify them that they will either drop the claim or file a lawsuit against the consumer. If the collection agency files suit and obtains a judgment, it can garnish the consumer’s wages which leads to damaged credit scores. Accordingly, the consumer should promptly appear in court with proper documentation regarding the debt.

People who are faced with a credit card lawsuit could also be threatened with the possibility of liens and repossession of their property. However, a bankruptcy law attorney may be able to advise such people of their rights and options, including filing for bankruptcy that may halt collection activities and lead to a discharge of the remaining credit card debt.

Source: Fox Business, “ Can I Request Proof of Credit Card Debt?“, August 20, 2014