Laws in Tennessee About Credit Card Debt
Many Americans have experienced the pain of credit card debt and the hassle of dealing with debt collectors. Both Tennessee and the federal government have passed laws that limit the actions of debt collection agencies. A consumer who knows these laws will be better prepared to deal with credit card debt and efforts to collect it.
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Statute of Limitations
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Credit card companies have a limited time, called the statute of limitations, in which to sue debtors for nonpayment. In Tennessee the statute of limitations is six years from the time the consumer incurs the debt. If the company does not sue the debtor before the end of six years, then the credit card debt is erased and the debtor no longer has to pay it.
Judgments
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If the credit card company sues, it can be awarded a court judgment. In Tennessee, a judgment awards the company the right to collect the debt. The company can garnish, or take, a portion of a debtor's wages. The company can also file a lien against a person's property, such as her house. These judgments are valid for 10 years in Tennessee. Ten years after a judgment is entered in court, the company can no longer try to collect the debt.
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Federal Law
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The Federal Fair Debt Collection Practices Act protects consumers in many ways. The law says that companies cannot contact family, employers or anyone else who is not responsible for the debt. They must stop contacting a debtor if the debtor demands that the company stop harassing her. However, a company can still sue a debtor who says that she no longer wants to be contacted.
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References
- Photo Credit credit card image by jimcox40 from Fotolia.com
