Claims collection of credit cards is rapidly increasing in Pennsylvania, particularly with the economy down. The volume of telephone calls and emails I received on this subject is surprising. What I found is that many people do not know their rights or how to handle these situations. I can say sure to contact a consumer advocate is a very good initiative. Unfortunately, many people call me after the credit card company or collection agency has a lawsuit against them. If they had called before, might have been able to help.
Claims credit cards are instituted on the basis that they have not paid (in arrears) on a credit account. Some credit card companies like Capital One simply file a lawsuit against you. Others will sell your account to a collection agency for pennies on the dollar. The collection agency then sought from you, and then will file a lawsuit if not pay the alleged debt.
It is important to understand their rights and obligations in this regard. Let's start with the biggest question of all "How time they have to sue me? In Pennsylvania, the answer is generally four (4) years from the date of payment on the account. The date of the omission is normally 30 days after making its last payment on the account. It is important to know that this does not mean you can not sue you after that time. I tell my customers can sue anyone for anything at any time. The key is that we must provide adequate defense to the claim. The presentation of a statute of limitations issue is to present a viable defense.
The next important right you have to know how much you supposedly owe. A card company credit or collection agency must be able to document, with absolute certainty the exact number of principles, interests, surcharges and so on. If they can document then not entitled to collect on it. The way we normally this document is to provide a copy of each statement that you have had since the beginning of the account when current.
Another important right is to know exactly who is entitled to sue. This is often a problem when it comes to a collection agency. An agency recovery usually have no right to sue unless they have been "assigned" to that right. This allowance is come in the form of a document written by the original creditor to the collection agency and that his list of specific account for sale. But also a collection agency has no right to sue in a court of Pennsylvania.
About the Author:
Greg Artim is a Consumer Attorney based in Pittsburgh, PA. He handles Lemon Law and Credit Card Defense matters in all of Pennsylvania. For more answers to your Pennsylvania Credit Card Law questions, please visit his website at Pennsylvania Credit Card Defense Attorney .
Article Source: ArticlesBase.com – An Overview of Credit Card/collection Agency Lawsuits