Legal Question in Credit and Debt Law in New York

consumer rights:re:credit card collection

Dear Sir/Madam,

From what I understand re: the consumer credit protection act, a credit card, when pursuing collection cannot threaten you with anything they cannot legally do. I personally, was told a credit card could do something with my mortgage; this was after I told them that I knew that they could put a lien on my house that could be satisfied when I sold it. They suggested they could do something more than this, i.e. force me to sell my house in order to satisfy their debt. I believe this is illegal and that this constitutes a law suit. Furthermore, I see on your web-site that their is another person who has written in who has been threatened with exactly the same thing. I believe this is not an uncommon thing and should be the basis of a class acton suit, if I am using the correct term. So far, no attorney has answered this other persons question, which is basically: can a credit card sell my house from under me? Or in other words what is the difference between secured and unsecured debt? Can credit card debt render me homeless? Can we get an answer to a probably all too frequent question these days, in the wake of 9/11 and lots of lay-offs?


Asked on 8/08/02, 7:41 pm

1 Answer from Attorneys
Michael Markowitz Michael A. Markowitz, PC

Re: consumer rights:re:credit card collection

My answer deals solely with New York State law. Other jurisdictions have other laws dealing with an individual's house (homestead exemption).

If a credit card company obtains a judgment, the document acts as any other judgment against an individual. Therefore, not only can the company place a lien on the house (filing the judgment with the county clerk), the company can sell the house through the Sheriff or Marshal pursuant to NY CPLR 5236.

Mike.

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Answered on 8/09/02, 9:23 am


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