Collectors

• Collectors cannot contact a debtor before 8 a.m. or after 9 p.m. A collector must comply when told that he cannot contact the debtor's work place or family members. The debtor has the right to tell the collector not to contact him further, and the collector must comply. Collectors must send a written validation notice to the debtor. This notice must include names of individuals or businesses owed and the amount.
  
  

Legal Action

• Collectors can sue a debtor. If the collector wins, the debtor will have a judgment issued against him. A judgment allows the collectors to garnish a debtor's wages. A court order is necessary to administer a garnishment of wages. Collectors can not garnish social security benefits, retirement benefits, veterans' benefits, student assistance or compensation for death or injury.
  
  

2010 Credit Card Law

• As of Feb. 22, 2010, new laws governing credit card debt came into effect. There must be a 60-day delinquency in order for the credit card companies to increase rates. When rates are increased, the consumer must be provided with a 45-day notice. Credit card companies must obtain approval from card holders to allow charges that exceed a card's limit. Consumers under 21 must now prove their ability to pay.