RE: What is the worst credit card companies can do if you default on your account and won't pay? (Full Version)

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LafayetteLady -> RE: What is the worst credit card companies can do if you default on your account and won't pay? (1/23/2013 10:20:40 PM)

quote:

ORIGINAL: DarkSteven


quote:

ORIGINAL: Toppingfrmbottom

He owned a car yes, but it broke down and we had to go to carmax and have my dad co sign a loan for us for a new car, so No he doesn't own the car.



I'm not so sure. Cosigning the loan means that your dad is responsible for the payments if your Dom doesn't pay. If your Dom's name is on the title, even as co-owner, I believe that the car can be seized.



It really depends on the book value of the car.  Below a certain point, they have no desire to seize it.  If they do, they have to go through the process of selling it, and they really don't want to be bothered with cars that have low book values.  It isn't worth the effort and cost they need to put forth to do it.



absolutchocolat -> RE: What is the worst credit card companies can do if you default on your account and won't pay? (1/23/2013 10:25:24 PM)

Unless you specifically breached a contract, they cannot sue you or take your property, unless your debt is secured -- meaning you had to put up collateral to get it. Most credit card debt is unsecured. They will call to harass you for a while, fuck up your credit score, but they won't sue. The debt will be erased from your credit after seven years, or you can file bankruptcy to discharge what you owe. (Student loan debt, child support, and IRS tax penalties cannot be discharged, and secured debts may have to be paid off, or you'll have to give up the collateral you used to secure the debt.)

Payday advance companies can and WILL sue, since you often promise to pay them on a specific day, with interest.

ETA: if you need help looking into bankruptcy and/or debt counseling, let me know. been there, done that.



LafayetteLady -> RE: What is the worst credit card companies can do if you default on your account and won't pay? (1/23/2013 10:28:20 PM)

quote:

ORIGINAL: Powergamz1

You have no computer, no vehicle, no clothes, no books, and no paycheck?

If they wanted to, they could still get a judgement against you, and if you keep ignoring *court* orders, there is the prospect of being arrested... not for debts, but for contempt of court.

That would take quite a while though.


I realize you are the knower of all things, but can you honestly and legitimately provide documentation of someone who wasn't in the higher money brackets having all their property seized?

Incidentally, no, credit card companies can not come and take your clothes.  We are talking furs and Jimmy Choos here.  Basically clothes have little value after you buy them.

Books?  Sure, all those first editions sitting around collecting dust.  Do you honestly believe the credit card companies are interested in someone's old paperbacks or cookbooks?

As I already mentioned, there are limits to them siezing a vehicle.  Look it up.  For a change.

Credit card companies aren't allowed to take an entire paycheck either, only a portion. 

As for "ignoring *court* orders, there hasn't been a single thing on this post about court filings.  Last I checked, creditors calling on the phone making threats still didn't qualify as an order from any court.  And ignoring a judgement won't get you arrested for "contempt of court."  A creditor has to really go out of their way to try to make this happen.  There was a case recently, somewhere in the midwest I believe, and I believe it was overturned.



LafayetteLady -> RE: What is the worst credit card companies can do if you default on your account and won't pay? (1/23/2013 10:30:11 PM)

quote:

ORIGINAL: servantforuse

I can guess that the debt you two have racked up is considerable. I don't feel sorry for either one of you. We all have choices to make every day in our lives and eventually we pay for those choices one way or the other.


TFB has done a wonderful job of telling you exactly what she thinks of you, and I, for one am proud of her for that.

Let me just assure you that you are definitely talking out of your ass here and making assumptions that are so far off the mark it's humorous.



LaTigresse -> RE: What is the worst credit card companies can do if you default on your account and won't pay? (1/24/2013 4:43:37 AM)

fr

TFB, I echo what NV and Kaliko have said. Credit cards are evil, unfortunately close to necessary today. I've been in the position of getting a little carried away and went rounds with Capital One a few years ago, before the government put the smack down on credit card companies. (so much for government interference being all bad...) I just recently finished paying the thing off.

I used to work for a credit card company....in the credit department and had to work with people like yourself. One thing I must stress, as hard as it is. Do NOT end communication with them. As soon as you start blowing them off, they will make the assumption you do not intend to honour your contract and will take whatever steps they can, legally, where you are.

Another thing to keep in mind. Each state has different laws regarding collections. Most laws in this area are federal, but it does vary by state to a degree. That is why, when I was working for Seiferts, we had states we specialized in and were each familiar with the laws in our states. Some were better for the customer and others were better for us.

Lastly........if you make them a promise, KEEP IT! If you feel you can't, call them PRIOR to the due date and explain. Constantly prove that you are making an effort. However small.

It is easier to ignore and not talk to them. Especially when it feels you are in over your head. Trust me, when it comes to unsecured debt, such as credit cards, most companies will work with you, regardless of their bluster and asshole-ishness. When dealing with Capital One I had to bluster right back and demand they make an effort to work with me. I did some reading and understood what they could and could not do.

Also, force yourself to save to avoid needing a credit card for the things you have. No matter how little the amount at a time. Seriously, I have worked out my own little system that is probably cheesy to some people, but it works for me. I often use cash for stuff, just because of how I manage my stuff. So, all cash I get, goes into an envelope, in the safe. It's there for surprise whatever that I might otherwise need a credit card. Christmas money, birthday money, it all goes in there. Instead of spending a few dollars I might happen to end up with on something unnecessary like a candy bar, coffee, magazine, whatever.......it goes into that envelope. In just a few months GD and I put 450.00 in there that I am going to borrow against to fill the LP tank. Because I am looking at it as borrowing, and will pay The Envelope back, I am borrowing and paying back myself........instead of a credit card company.

But back to the point at hand........don't beat yourself up, work through it. Use your head. Learn from it. Don't let yourself get in the same situation again. It took me two bouts of 'Damn, how did this credit card bill get so fucking huge?!?" to learn my lesson. Now I prefer to pay myself instead of some greedy corporate motherfuckers.



Powergamz1 -> RE: What is the worst credit card companies can do if you default on your account and won't pay? (1/24/2013 5:27:20 AM)

Since you are the one making the extraordinary claim, it is up to you to provide extraordinary proof.
Instead, we get the usual pile of strawmen to support your sophomoric war against reality.

Meanwhile back in the real world, where the question was asked as to what is the worst that a creditor can do, the answer is correct. Creditors can get a judgement, garnish wages, in the absence of wages, freeze assets, in the absence of liquid assets, have the SO take a limited amount of personal property. Last resort is a judge finding the debtor in contempt.

As is common in the real world, the worst case doesn't have to apply in every case.


The boast of being 'judgement proof' depends more on not being worth going after, than on knowing some secret trick that prevents the legal system from touching you.

http://smallbusiness.findlaw.com/business-finances/creditors-rights-and-collection-options.html
http://www.law.cornell.edu/wex/debtor_and_creditor

Hmmmm... who to believe, who to believe??? Actual attorneys, or someone on the internet who has once again been caught BSing about their expertise?






quote:

ORIGINAL: LafayetteLady

quote:

ORIGINAL: Powergamz1

You have no computer, no vehicle, no clothes, no books, and no paycheck?

If they wanted to, they could still get a judgement against you, and if you keep ignoring *court* orders, there is the prospect of being arrested... not for debts, but for contempt of court.

That would take quite a while though.


I realize you are the knower of all things, but can you honestly and legitimately provide documentation of someone who wasn't in the higher money brackets having all their property seized?

Incidentally, no, credit card companies can not come and take your clothes.  We are talking furs and Jimmy Choos here.  Basically clothes have little value after you buy them.

Books?  Sure, all those first editions sitting around collecting dust.  Do you honestly believe the credit card companies are interested in someone's old paperbacks or cookbooks?

As I already mentioned, there are limits to them siezing a vehicle.  Look it up.  For a change.

Credit card companies aren't allowed to take an entire paycheck either, only a portion. 

As for "ignoring *court* orders, there hasn't been a single thing on this post about court filings.  Last I checked, creditors calling on the phone making threats still didn't qualify as an order from any court.  And ignoring a judgement won't get you arrested for "contempt of court."  A creditor has to really go out of their way to try to make this happen.  There was a case recently, somewhere in the midwest I believe, and I believe it was overturned.





Toysinbabeland -> RE: What is the worst credit card companies can do if you default on your account and won't pay? (1/24/2013 5:41:08 AM)


quote:

ORIGINAL: servantforuse

I owe right around $600.. It gets paid on time every month to avoid 20% + interest charges.




For $600 you are quibbling??
Get a part time job for a week or two and pay your debt!
That's just wrong.



servantforuse -> RE: What is the worst credit card companies can do if you default on your account and won't pay? (1/24/2013 5:59:24 AM)

Someone asked me what I owed and I answered the question. Not quibbling at all. Credit cards are a good thing when they are used responsibly.



MariaB -> RE: What is the worst credit card companies can do if you default on your account and won't pay? (1/24/2013 6:45:08 AM)

quote:

ORIGINAL: absolutchocolat

Unless you specifically breached a contract, they cannot sue you or take your property, unless your debt is secured -- meaning you had to put up collateral to get it. Most credit card debt is unsecured. They will call to harass you for a while, fuck up your credit score, but they won't sue. The debt will be erased from your credit after seven years, or you can file bankruptcy to discharge what you owe. (Student loan debt, child support, and IRS tax penalties cannot be discharged, and secured debts may have to be paid off, or you'll have to give up the collateral you used to secure the debt.)

Payday advance companies can and WILL sue, since you often promise to pay them on a specific day, with interest.

ETA: if you need help looking into bankruptcy and/or debt counseling, let me know. been there, done that.


Well said
Im from the UK where unsecured unpaid credit card debt is sold on to chaser companies every six months. The debt is sold on for a lot less than what you owe. e.g if you owe them 5,000 the debt will be sold on for 3,000 and six months later will be sold on for 1,000. Eventually companies will be buying your 5,000 dollar debt for 100 dollars but they will be chasing you for the 5,000.
What I would strongly suggest you do is, sit tight. Don't answer your phone to them and don't reply to mail.
If your debt is more than 50,000 its likely they will take you to court but before it gets that far you can go into voluntary bancrupsy.... like absolutechocolat says.
If its around 10-15 thousand the debt is only worth chasing by phone calls and letters. Taking you to court, especially when the likelihood of you not being able to repay is high, is just not something these credit companies do, they simply can't afford to. Remember you are not alone. More people are not paying their credit cards than ever before.
Your phone will ring continuously. They have people sitting round the clock making these phone calls and these people are on huge commissions, I know, I ashamedly used to work for a company that did this.
After about 3 months its going to go quiet because you are going further and further down the pile and you are no longer considered as a 'hot debtor'.
Once the phone calls and threatening mail becomes active again, that is when your debt is in new hands
You can then write to the company and ask them if they have purchased your debt and if so how much did they purchase it for?
They won't tell you because they want to collect what you originally owe even though they may of only paid 1 thousand dollars for the 5 thousand they are trying to collect. The problem now is, they are not allowed to lie and so put in this quandary they will once again sell your debt off at rock bottom price.
Each time it gets busy again re-write with that same question. Tell them you are willing to negotiate with them but the negotiations will be what they paid for the debt.

Get rid of the white knights because its going to cause you nothing but grief. Whatever you do, don't allow any of your family to countersign anything on your behalf. These companies often negotiate with creditors on the basis of turning an escapable unsecured debt into a un-escapable secured one.

Another thing you should be aware of is about interest charges. Once an account is turned over for collection the interest stops but once your debt is sold on the account is re-opened and growing interest rates are re-triggered. Now when someone buys your debt they also purchase the interest owing and any penalties on the account. Having the interest frozen on an account is only good until that account is sold.. worth keeping in mind.






absolutchocolat -> RE: What is the worst credit card companies can do if you default on your account and won't pay? (1/24/2013 6:55:14 AM)

Credit cards are good in emergencies, but like LaT says, don't use them frivolously. A better alternative is getting a secured credit card, because you set the limit. You give a company, say, $500, and that is the card's limit. You're essentially borrowing your own money when you use the card.

I had two very small balance cards, but one had high interest penalties after I defaulted. What started off as a $500 debt ballooned into $4,500 before I took care of it. Lesson learned? Use a debit card or cash. Period.



Toppingfrmbottom -> RE: What is the worst credit card companies can do if you default on your account and won't pay? (1/24/2013 9:10:04 AM)

Lat, I had a savibgs account but I had to start robbing it for bills, and vet care. It wasnt a fantastic amount, but even what it was better than a poke in the eye.


I am considering trying to get into the ssi*s work program too. It allows you a trial period of 9 months to see if you can work, and the program will let you keep your medical and other benifits. Ssi might be docked a bit in the program or it might not, I think you can make 100 dollars per pay check before docking ssi, and I really doubt id get a job that pays 1/0 a payday.



LafayetteLady -> RE: What is the worst credit card companies can do if you default on your account and won't pay? (1/24/2013 9:27:53 AM)

Interestingly enough, your link doesn't refute a single thing I said.  Not surprised.

Of course since I do know the OP and a lot more about the situation, I am in a much better position to explain things to her.  I have no need to bullshit.  Unlike some, I don't have the need to resort to being a constant asshat or fuckwit.



LafayetteLady -> RE: What is the worst credit card companies can do if you default on your account and won't pay? (1/24/2013 9:29:17 AM)

If you do try to get a job TFB, use the "Ticket to Work" program. 

Also, only pay towards those credit cards any charges that are yours.  Take the rest of your income from that job and put it away for things like emergency vet care.



Toppingfrmbottom -> RE: What is the worst credit card companies can do if you default on your account and won't pay? (1/24/2013 10:27:38 AM)

Yup. That's the program I'd go through. And yes I'd only pay my bills, and help out with some house hold things like groceries and gas for when he takes me around.


the rest would be saved.
quote:

ORIGINAL: LafayetteLady

If you do try to get a job TFB, use the "Ticket to Work" program. 

Also, only pay towards those credit cards any charges that are yours.  Take the rest of your income from that job and put it away for things like emergency vet care.




Level -> RE: What is the worst credit card companies can do if you default on your account and won't pay? (1/24/2013 10:48:31 AM)

Let me disagree with something Maria said: they WILL take you to court even if you don't owe them a ton of money. We get cases filed daily for relatively small amounts.



wittynamehere -> RE: What is the worst credit card companies can do if you default on your account and won't pay? (1/24/2013 10:50:08 AM)


quote:

ORIGINAL: Level

Let me disagree with something Maria said: they WILL take you to court even if you don't owe them a ton of money. We get cases filed daily for relatively small amounts.

Let me disagree with Level. They MAY take you to court for small amounts. It's nowhere near a certainty. Much closer to "maybe" then "for sure".



LafayetteLady -> RE: What is the worst credit card companies can do if you default on your account and won't pay? (1/24/2013 11:11:26 AM)

Well, the positive thing about this is that since the cards are actually TFB's partner's, not hers, at least it isn't going to affect her.

Considering that the debts are his, not hers, that is a good thing.



MariaB -> RE: What is the worst credit card companies can do if you default on your account and won't pay? (1/24/2013 1:12:55 PM)

Powergram, your links have absolutely no relevance to the ops situation.
The first link is about small business. Small businesses have more and easier routes of collecting money owed to them. This was primarily put in place to protect the small business from going under. This can not be compared with individual borrowing from creditors.
The second link is about secured credit and not about unsecured credit. Again its not relevant.



Level -> RE: What is the worst credit card companies can do if you default on your account and won't pay? (1/24/2013 1:46:32 PM)


quote:

ORIGINAL: wittynamehere


quote:

ORIGINAL: Level

Let me disagree with something Maria said: they WILL take you to court even if you don't owe them a ton of money. We get cases filed daily for relatively small amounts.

Let me disagree with Level. They MAY take you to court for small amounts. It's nowhere near a certainty. Much closer to "maybe" then "for sure".


True. But if they owe a grand or two, I'd lean towards "likely".



curiouslilkat -> RE: What is the worst credit card companies can do if you default on your account and won't pay? (1/24/2013 2:41:25 PM)


I'll add an option here your only source of income is ssi as an unmarried individual with no assets in your name? Based on that limited income source you'd be grouped into what is called insolvent for collecting outstanding debt .All incomes ssi ssdi retirement pensions or tanif welfare are legally protected from any creditor to garnish bank accounts (usually the accounts are federally funded with a debit card thats how most benefits are electronically sent to accounts )use caller Id or turn your ringer low if you don't want to engage with them.

K






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