Can They Threaten...?

The threats that I hear on credit card cases really throw me for a loop. Just the other day, a lady called my office telling me that she was threatened by a major credit card company. She advised that her husband had a credit card in his name only and he passed away. She called the credit card company to advise them and they told her to pay the debt. She advised that she was disabled and did not have any disposable income. They asked her what the husband charged on his credit card and her reply was that he bought her a motorized wheelchair.

Unbelievably, the credit card company told her to sell the wheelchair and give them the money from the sale. The woman became scared and told them that the wheelchair was not operational as it needed a new battery. The credit card company actually ordered her to buy a new battery, make sure that the wheelchair was operational, sell it, and then give them the proceeds!

Fortunately, the lady called our office where I advised her that the threats were illegal. I further advised the lady that she could likely file a lawsuit against the company for unfair debt collection practices. There is a federal law that protects individuals from debt collector abuse and its called the Fair Debt Collection Practices Act (FDCPA for short).

The really big threat that we see on these cases is the threat of wage garnishment. If you haven't read it elsewhere on this site, wage garnishment for credit card debt is not legal in Pennsylvania. A debt collector cannot even make a threat of wage garnishment as it violates the fair debt collection laws. (Pennsylvania is one of only 4 states that outlaws wage garnishment for credit card cases).

We see other threats from time to time, "We're going to throw you in jail" or "We're going to sell your house". Neither of those things are going to happen. Jail time is not a possibility in a credit card case. There isn't a law anywhere in the United States that allows a person to go to jail for non-payment of a credit card debt.

As far as selling a house? I just do not believe that can occur except under an exceptional circumstance. The average credit card case that I see is for a debt of between $5000 and $10000. Even if the credit card company or collection agency wins the case, that simply is not a large enough amount to have your home sold to pay off the judgment. (A lien can be placed, though, that would have to be paid upon sale of the house). 

If you have a credit card company or a collection agency attempting to collect a debt from you, or making illegal threats, please contact my office at 412-823-8003 or send an email to Attorney Greg Artim