- The Fair Debt Collection Practices Act (FDCPA) is a national act passed by Congress to protect debtors from abusive collectors. The FDCPA includes credit card debt. However, states differ in some restrictions of the FDCPA. For example, in some states collectors seeking payment for a store credit card are not restricted by FDCPA. In general, FDCPA prevents collectors from contacting third parties, falsely threatening action to intimidate, and placing calls at unreasonable times or inconvenient places.
- A majority of state laws on debt closely relate to FDCPA. Check with the state's attorney general to determine your state's variations. The attorney general's office also provides a listing of debtor rights and collection laws. The attorney general usually handles all state debt collections and complaints. When dealing with credit card debt issues and collection agencies, first contact your state's attorney general.
- Many states enforce laws governing debt management services or credit counseling agencies. To prevent abuse, many states require agencies to be licensed. Some states do not require nonprofit organizations to register, while other states require all agencies to have a license. Contact the state's attorney general for an agency's credentials before using or contacting debt management or credit counseling agency.
- A statute of limitations is the legal period a debt collector can sue debtors to collect payment of debt. Each state differs in its statute of limitations period, but most range between three to seven years. After a statute of limitations runs out, the debt becomes time-barred and cannot be collected via the court system. Usually, for a credit card account, the statute of limitations begins on the date of the last payment; however, if the consumer makes a payment of any amount, the statute of limitations moves to that new date.
- Determine which state's statute of limitations applies to the credit card account in question. Do not assume it is the state listed on the billing address of the account. Read the credit card company's card member agreement to learn the correct statute of limitations. The card member agreement also indicates whether an account qualifies as a written contract and is covered by a statute of limitations. Usually, credit cards qualify for the state's statute of limitations under written contracts or open accounts.
