Legal Question in Credit and Debt Law in New York
Credit Card Abuse
I was told by a collection agency that they plan to sue me in order to recoup my credit card debts. I was told that this suit would be for credit card abuse. I had never heard this before and I would like to know what I am in for. I am unemployed with no way to pay them back at the moment (and no assets to speak of, save a guitar and a television set). I believe that bankruptcy may be my only option, and I am inclined to persue it at this point. Can someone define ''Credit card abuse'' for me and let me know of potential punitive actions resulting from such a lawsuit?
3 Answers from Attorneys
Re: Credit Card Abuse
I do not know what credit card abuse is.
If you plan to file for bankruptcy, consult with an attorney IMMEDIATELY! In October, 2005, the bankruptcy law is changing making it harder to file and get out of debt.
Good Luck.
RRG
Re: Credit Card Abuse
"Credit Card Abuse" is an artful term which creates options for you. The debt collector may not make certain kinds of threats. They may not threaten criminal action.
Save all emails related to 'lawguru'. They will be a part of your action against the debt collector for violations of 16 USCA 1502 (Ithink that number is right - The Fair Debt Collection Act).
"Credit Card Abuse" sounds like a criminal action to me and they may not make this threat.
The elements would be that you (1) accepted credit (2) under fraudulent circumstances, that is, knowing that you could not repay the loan, and (3) for non-necessities.
It is usually called 'fraud in the making of an instrument'.
Chapter 7 is certainly an available option to make the debts unenforceable. Please let me know your income and the total amount of the debt to advise you on this issue. If you are uncomfortable with telling me your income, just the dollar amount of the debts.
Re: Credit Card Abuse
In a word, credit card abuse means just that... you abused the credit card system. It may be that you recently "overused" your credit card privileges, or it may mean that you were less than accurate about your income when you applied. As you may know, the bankruptcy law was recently amended...making it harder to get the debts discharged. If the credit card company can show that you "loaded up" on purchases within 6-9 months of filing, you might not get out of the debt. Also, if you lied about your finances when the card was issued, that amounts to credit card fraud...and that might also prevent you from getting out of any of your debts. (bankruptcy court does not like people who commit fraud and then try to use their court to get out of debt). You should consult with a bankruptcy lawyer ASAP as the new law has not gone into effect...yet. The other lawyer has a point...you MIGHT be able to get the collection company for threatening you with something that MIGHT NOT BE PROPER. If so, there is a federal law (he cited it) that allows you to SUE the collection agency for violation of federal (and state) collection laws.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
