Restrictions on Credit Card Fees

Rules issued by the Federal Reserve Board place several limitations on the ability of credit card companies to charge fees and issue credit cards. These restrictions, which went into affect two years ago, impose more fairness on credit card billing. A summary of some of these limitations is following:

• Interest rates cannot generally increase in the first year after a credit card account is opened and increases to the interest rate on new transactions after the first year can only increase after 45 days notice has been provided to the debtor.
• Credit card companies are required to post their standard card agreements on their websites so consumers have access to them.
• Credit card payments that exceed the minimum payment required have to be applied to the account balance with the highest interest rate.
• Credit cards can't be issued to people under the age of 21 unless the debtor shows an ability to pay or has a cosigner over the age of 21. There are also restrictions placed on companies trying to market credit cards to college students.
• Each credit card statement has to include a disclosure showing the amount of time and the total cost of paying the account balance in full by only making the minimum payment required. The statements must also disclose what the monthly payment needs to be if the debtor wants to pay the balance in full within 36 months. 
• Credit card companies have to get the express permission of a consumer before they can charge a fee for transactions that exceed credit limits. There are also limitations on when over-the-limit fees can be charged. 

These and other restrictions on credit card companies will hopefully put an end to some of the more unfair methods companies previously used to make money off credit card holders. 

Signs of a Debt Collection Scam

Credit and debt collection scams are becoming more and more sophisticated. It's hard to tell the difference between legitimate debt collection efforts and scammers waiting to take your money. The Federal Trade Commission offers these signs of a scam:

• The caller claims to be with a government agency or law enforcement. Law enforcement never gets involved in private debt collection and the circumstances under which they might be involved after a judgment has been entered are rare. Don't make payment arrangements to anyone over the phone, even if they claim to be with an agency or law enforcement.
• Scammers want you to act immediately, before you have time to figure out who they really are. Don't agree to anything on the spur of the moment. If the caller insists you act now it's a pretty good sign they're not legitimate. Take the time you need to find out if you should do anything. Talk with a lawyer about whether you have some defenses to the debt collection.
• The caller wants you to wire money. Insist on getting a physical address, not just a post office box, where you can send a check once you determine the person or company calling is legitimate.
• Find out whether the company is registered to do business in Iowa before agreeing to do what they want.

If you're faced with someone calling trying to collect a debt and their behavior makes you nervous, contact us at melissaatthompsonlaw@gmail.com first before agreeing to do what they want.

Consumers and Unfair Debt Collection

Complaints about debt collectors are on the rise throughout the country. It's not uncommon for a consumer to feel they've been harassed by creditors and debt collectors. There are some basic rights that all consumers have when dealing with a debt collector. Here are some of these basic rights:

• A debt collector can't call you at inconvenient times or places unless you agree to the calls. They also can't contact you at work if you've told them either orally or in writing not to. 
• If you don't want a debt collector to contact you anymore you can tell them to stop but you need to do it in writing. Send a letter by certified mail saying you don't want to be contacted again. The debt collector can still contact you after that only to say that they will be taking some specific action, like filing a lawsuit. This letter won't prevent the debt collector from filing a lawsuit or make the debt go away. 
• Debt collectors can't tell you that you'll be arrested if you don't pay and they can't say your property or wages will be seized or garnished if they don't intend to actually do so. 
• Debt collectors can't contact you by a postcard and they can't send any document that looks like a court document or is from a government agency if it really isn't. 
• A debt collector can't contact a third party except for the limited purpose of finding out your address, your home phone number and where you work. If the debt collector already knows this information then they shouldn't contact anyone other than you or your spouse. The debt collector can't contact a third party to get this limited information more than once. 
• Debt collectors are required to send you a written notice within five days of their first contact with you notifying you of your right to request validation of the debt. That request for validation has to be sent within 30 days of your receipt of the letter. The debt collector can't contact you again until after that validation has been provided to you. 
• Debt collectors can't call you repeatedly to annoy you or use obscene language.
• Debt collectors can't falsely claim you've committed a crime or falsely claim they are with law enforcement. 

If a debt collector has violated the federal Fair Debt Collection Practices Act, any lawsuit brought against them for these violations has to be brought within one year of the violation. So if you're being harassed by a debt collector, don't wait to contact us about it. Contact Thompson Law Office at melissaatthompsonlawoffice.net or call 515-875-4850. 

Avoid Being A Victim of Fraud

The Federal Trade Commission (FTC), the government agency charged with protecting consumers against fraud, lists some important ways to avoid being a victim of fraud.

• Con artists often insist that people wire money because it's nearly impossible to get the money back or trace where it goes. Don't wire money to strangers or to anyone who requires that payment be made through a wire transfer.
• Don't fall for sales pitches that sound too good to be true, like "97% success rate" or "Guaranteed to save your home."
• Don't pay any business or organization who promises to prevent foreclosure or get you a new mortgage. So-called "foreclosure rescue companies" claim they can help save your home but they often want high fees in advance and then stop returning your calls. If a company wants paid in advance to help you should think twice.
• Send mortgage payments ONLY to your mortgage servicer, not another company that offers to handle your finances.
• Don't send money to someone you don't know, including online merchants.
• Read your bills and monthly statements regularly. Dishonest merchants sometimes bill you for monthly "membership fees" and other goods or services you didn't authorize.

If you fall victim to these or other schemes contact the Federal Trade Commission or email us at melissaatthompsonlaw@gmail.com. The action may violate state consumer fraud laws that could result in compensation for you.