It is often easy for people to accumulate a great deal of credit card debt unexpectedly. This will almost surely cause money problems, stress, harassing phone calls, possibly even lawsuits. But Texas credit card laws provide much more legal protection to the debtor than most state laws do. The following article will go over some of the main pieces of these laws and inform you of just what they mean.
Secured vs. Unsecured Debt
It is important to understand the difference between two forms of debt. Secured debt is money owed on a specific, tangible thing, like buying a car or mortgaging a home. Unsecured debt is other money owed for a variety of items, such as purchases made on a credit card. Secured debt can be collected simply by repossessing the item in question. However, Texas does not allow unsecured debt to be collected in this way. A credit card company cannot take your property or assets in order to pay back a debt you owe. In fact, they are not even allowed to make threats of such actions, regardless of whether or not they carry the threats out.
Wage Garnishment
Most of the United States deems it legal for a credit card company to garnish your paycheck if they have obtained a judgement against you. Garnishment tends to be permitted up to 25% of your weekly income. In Texas, wage garnishment is not legal in any amount, even if a settlement has been obtained in the company’s favor. The only thing a company can do is take money right from your banka account. Of course, this can be a problem for them if someone doesn’t have a bank account, since this is the only legal way they have of obtaining their money.
Being Harassed
Texas has very forceful policies against companies harassing individuals. Federal laws are already in place to prevent many forms of harassment, such as illegal collection practices or constant phone calls at all hours. Texas law, though, goes above and beyond this, adding its own set of protections. Creditors are not allowed to threaten any debtor with criminal charges, or to continuously call a debtor on the phone, making it ring consistently. If the credit card company breaks any of these rules, the debtor can sue for monetary compensation.
Texas credit card laws lean heavily toward protecting the debtor. While credit card debt is a situation many of us find ourselves in unexpectedly, with these laws it is easier to negotiate a fair settlement and to know your rights as a debtor.
Click here for more information on Credit Card Suit and Court Credit Card and Credit Lawsuit
Categories : Lora's Posts
Sorry! This article is unable to leave response!