Legal Question in Credit and Debt Law in Indiana

Re: over limit fees

I can't be sure without examining the credit agreement, but it is likely that the credit card company is within the letter of the law (I wouldn't want to say its "rights") to assess all the fees that are being added to the credit card balance. Indiana has very weak consumer protection concerning loan charges. However, if your daughter asked that the account be closed, then the fees should have stopped at that point. She is entitled to close the account. She is also entitled to write them a letter, asking that she not be contacted any more. The letter should be certified, so you can prove they received it so her attorney has evidence to hammer them if they continue to bother her. (Violation of the Fair Debt Collection Practices Act. Study this link for more information: http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm) Unless your daughter has assets, like real estate or bank accounts, which can be attached following a court judgment, it would be a waste to file bankruptcy over $4,000. Her disability benefits are exempt from attachment. At some point, a credit collection agency will get involved, someone who has purchased the account for a few cents, and then, if you want to, a deal for a lump sum (say $1500) final payment can be arranged. Good luck.