Lack of money is the root of all evil. —George Bernard Shaw
Many immigrants do not realize until it is too late that they have become addicted to the use of credit cards to the point that after just a few years, they seek credit card counselling and, in a worst case scenario, bankruptcy relief protection. They have unwittingly entered credit card hell with collection agencies hounding them and recording all sorts of negative entries into their credit history.
How do you know if you are way in over your head with too much debt? There are early warning signs. If you find yourself like an acrobat trying to juggle too many bills, paying one company this month and another next month, borrowing from one to pay the other one and when lenders send you overdue notices, you are wading into the waters of financial trouble.
Making only the minimum payments never really paying down the principal owed is one sure sign. When you have nightmares and begin dreading going to the mailbox and opening your monthly credit card statements, it is time for a reality check.
Face this problem squarely. Ignoring it will not make it go away. Try discussing this with your lenders to work out a debt repayment schedule. They would rather not seize your property or send the hounds of a collection agency to you. This is their last resort if you try to bury your head in the sand and ignore this problem.
Even if you have defaulted on your credit, you still have certain rights as mandated by the Federal Fair Debt Collection Practices Act. There are a number of provisions about this act that affords you certain types of protection that you should know. Of some relevance is for you to know that debt collectors cannot use abusive, deceptive or unfair techniques to collect the money that you owe. Unlike in some other countries, there are parameters that a collection agency cannot and should not cross. It will cost them if they do. There are resources in the internet and books in the library to help you through this sticky situation.
Collection agencies cannot threaten you with violence, curse you or verbally assault you with arrest or imprisonment unless they are able to obtain the legal right to do so. They cannot force you to accept collect telephone calls or shame you by advertising your debt. You should know that bill collectors are prohibited from calling you before 8am or after 9pm, and they may not call you at work if they know that your employer disapproves.
If the collectors violate any of the rules of the act, you can sue for damages. But do not look at this as a way to make money. Know that if the court finds you have acted in bad faith with the collection agency, you may have to pay the collector’s legal bills. Suing for damages can backfire on you and cause you more trouble.
The rights protect you from abuse, but your debts have not been forgiven. Creditors can and will seize whatever assets you have, attach or garnish your wages or foreclose on your home or property if you do not pay what is due them.
Recent legislation that govern bankruptcy protection laws seem to go in favor of credit card companies rather than the consumer. Gone are the times when consumers who have abused their credit lines can seek protection from their creditors by simply hiding their assets and filing for bankruptcy. If you seek to understand the substantial changes that are shaping the country’s bankruptcy protection laws, go to government internet websites that cover consumer debt and bankruptcy laws.
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( Published on January 28, 2009 in Asian Journal Los Angeles p. B3 )
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