VERIFICATION OF DEBTS

For Ohio residents who are being contacted about credit card debt, it is vital to understand personal rights when it comes to paying debt. However, a person who is being pressured to pay a debt, especially one he or she believes may be incorrect, does have some recourse. The Fair Debt Collection Practices Act specifies that a person who is being asked to pay a debt may request verification of the debt in writing if he or she needs proof. If this request is made within 30 days of the collection agency's first contact about the balance, then the agency is obligated legally to stop contacting the person until the debt has been verified.

The debtor is also able to tell the collection company to stop calling about a balance. After making that request, the collection agency can file suit or stop pursuing the claim. The agency may contact the person only to report a decision to do either of these things. However, if the company pursues legal action and receives a favorable judgment, it might be allowed to seize assets or garnish wages until the balance is paid.

In some cases, it may be necessary for the debtor to show up in court in order to fight the claim. Generally, if a person brings evidence of his or her financial situation, the court will grant lenient payment plans. When a person does not show up for court, a judgment is frequently passed against him or her, and the person may soon face significant payments being garnished from wages.

For those who are struggling with creditors or unmanageable credit card debt, it may be helpful to understand the rights a person is provided by state and federal statutes. Declaring bankruptcy may prove to be an option for managing debt and protecting personal finances while a person works to repay debts. For these people, talking to a lawyer who has bankruptcy experience may be helpful.

Source: FOX Business, "Can I Request Proof of Credit Card Debt?", Jeanine Skowronski, August 20, 2014