Legal Question in Credit and Debt Law in Texas

Re: Credit card collectors harrasment

"I have been threatened by credit card bill collectors that they will file lawsuit agaist me if I do not go into a settlement with them within this Friday. I have a feeling that this is just a threat to collect the debt! What I need to know is, can the credit card bill collectors file lawsuit agaist me based on a un secured loan, which is basically the credit card?"

Yes. A debt is a debt, whether secured or unsecured. The collectors will get an attorney to file the lawsuit against you, unless they are a law firm as well.

"And what steps do I need to take if they do that?"

Depends upon the debt, and whether it's in Justice Court or a higher court. If you have a defense, you may consider hiring a lawyer to defend you.

"And what is the worst could happen?"

They will take a judgment against you for the debt, court costs, attorney fees, prejudgment interest and postjudgment interest, to run until the judgment is paid. The initial judgment is good for ten years. It can be refreshed for another ten each decade.

"By the way, Their harrasment has caused me high blood pressure and made me physically ill. Is there anything I can do to stop this harrasment?"

If you write to them and tell them that all further communications are to be in writing that'll stop the phone calls. Then you'll receive notice of a lawsuit. Unless the bill collector has violated the debt collection statutes, they haven't done anything illegal.

"I cannot payoff the debt right now, because I have been laid off for a while."

That's the reason why you haven't paid, but not an excuse for non-payment. It is not a defense.

Re: Credit card collectors harrasment

The Debt Collections Practices Act stops them from calling you, threatening to sue you without suing, and a host of other protections. Since the credit card debt is unsecured (meaning there's no collateral for them take and they can't garnish your wages), the company can certainly sue you and get a judgment (if they want to spend the time and money). More likely, they will write off the debt and wreck your credit rating. If you settle with them, be sure that they agree to remove all negative information from your credit rating.