It’s very important in today’s economy for any consumer to know their rights. In the past the creditor had all the power in their favor, but with the rise in un-employment and inflation it’s not the case. Today the creditor must offer a settlement to you. This is required by law, so don’t let them say otherwise. It isn’t a license to go into debt, far from it. A person still needs to spend wisely and within their means, but sometimes unforeseen circumstances impose a reason for seeking a debt settlement.
Credit cards are the most encompassing form of debt. It can sneak up on a person quite suddenly. This is why laws have been instituted to control credit card companies and how far they can go in seeking restitution. Although a credit card company doesn’t have to accept any payment you wish to make, they do have to enter negotiations for a “reasonable” settlement on your behalf.
Credit card debt settlement laws also state that once you have negotiated a settlement that the creditor can not enter in to a civil lawsuit against you. Once a settlement is reached it signals that the creditor has entered into an agreement with you. When a creditor makes an inference that a civil suit may be brought against you, stand firm with your offer. However be reasonable in the stance you take. Keep in mind that you aren’t the only one your creditors are dealing with. The average household has over fifteen thousand dollars in credit card debt. If your credit card debtors are wise they will want to settle as much as you do.
Several states have laws in place that prevent debt collection agencies from harassing you. This may be only at work or after a certain hour at home. You need to check the laws of your state to find this out. Also be aware that a new law protects the consumer against credit card over-charges on interest rates, existing balances, double-cycle billings, or raising interest rates. In the past credit card companies could hike all these costs up once an agreement was reached. This is against the law and cannot legally be done.
You must know the credit debt settlement laws to deal with these companies. Their assumption may be that you won’t know your rights. But remember, these laws are for your protection and not to abuse.
Indianapolis Lawyers
These articles are for the benefit of our readers including those from other states besides Indiana, and might not pertain to, or reflect the laws of Indiana or the practice areas or opinions of any one particular Law Firm.
