Legal Question in Credit and Debt Law in Florida

What Federal Statute do credit card companies use to collect interest

A person terminates their credit card, in attempts to pay off some charges that have accrued. While at the same time, the interest laws are in effect. The clock is going, and it gets worse and worse. One lady dept manager commented that she never gets credit card offers in the mail because she pays her debts off right away. And the only people that they solicit are people that they are sure they can milk, so to speak for years to come. Because they cannot keep up on their bills. So, what banking law or federal statute gives these people the right to persue going after people with unpaid bills or incite legal action?

As a result of interest charges?


Asked on 1/08/06, 10:04 pm

1 Answer from Attorneys
Samira Ghazal Ghazal & Gomez, P. A.

Re: What Federal Statute do credit card companies use to collect interest

Credit is extended to almost all individuals. How they handle their credit afterwards is the basis of your credit score or "grade".

The right to continue to collect interest is based on contract law. You signed for a credit card and there were conditions. The Federal Statute which regulates the REPORTING of information on your credit report is the Fair Credit Reporting Act. You can learn a lot more about your legal rights by visiting my web page www.FLORIDACREDITLAWYER.com -- look under articles. There are some free educational articles on how to recover your credit.

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Answered on 1/09/06, 5:24 pm


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