The CARD Act

The Credit CARD
(Card Accountability, Responsibility and Disclosure) act became
effective in 2010. This act was created to set a limit on the number of
card abuses consumers faced. Under this act, card companies are not
allowed to automatically allow card owners to go over their limits. They
also cannot raise the interest rates within a year after a credit card
is activated. If they do increase their interest rates after a year, the
need to send the card holder a notice 45 days before it is implemented.

Original Creditor VS Collection Agencies

During
cases where a collection agent constantly calls a cardholder asking
about their bills, they should know where the call is coming from. There
is a big difference if the agent is working for the original creditor
or a collection agency. Agents calling on behalf of the original
creditor should be able to give details about the cardholder’s account,
such as the interest rates and specific information about purchases. It
is the right of the cardholder to know these details so that they can
match it with the statement they receive every month.

Collection
agencies cannot provide these details since they most likely bought the
debt from a creditor. They usually only have the name of the debtor,
contact information and the amount due. This makes it very hard to
confirm if the amount is correct or not. Some collection agencies would
use threats of filing a lawsuit to scare the person into paying their
bills.

Legal Help for Card Abuse

Consumers
need to be aware of their rights and know when their card provider is
abusing them. Many people would have a credit card lawyer in California
to help them run through their credit statements to check for any
anomalies, substantial interest rate increases, and broken promises or
unfair penalties. Getting a credit card lawyer in California will assure
you that your rights are protected. They can help you file a complaint
against the credit card company and get things straightened out.