Questions on creditcards???HELP?

Question

Okay-Please no rude answers as you dont know the whole story of how this happened-Im 20 yrs old i ended up getting into about $13,000 dollars of credit card debt (after an emergency medical surgery) and also that is after like $2000 of interest. I wasnt able to pay on the bills and cant make the minimum payments. I have been out of the house for almost 2 years and one creditor is saying that they will get my parents in trouble they even call thier house.....but i dont understand how they can......the only thing they co-signed for is my car loan. And it is current...never late...so how can they getmoney from my parents when i dont live with them and financially other than my car(which im turning over to them and taking my name off of it) how could they get in trouble???
Thank you for those that are helpful!

I put the bills from the hospital on my credit card as they had no payment options...just wanted the money up front......when i switched it to the credit cards i thought at least then i could make payments...I never gave out my parents number either

Answer 1

In a 2004 news bulletin posted by the Better Business Bureau (see link below)...

According to the Fair Debt Collection Practices Act, collection agencies are forbidden from contacting someone before 8 a.m. or after 9 p.m. They also may not use obscene language or make threats of violence or harm. In addition, if told in writing, the collector must cease all contact with you, except to inform you that they will not contact you in the future or to notify you that the collector or creditor intends to take a specific action. Within five days of contacting you, a collection agency must send a written notice telling you how much money is owed, the name of the creditor to whom the money is owed and what to do if you believe that you do not owe the money in question.

Consumers should also realize that the laws set forth in the Fair Debt Collection Practices Act apply to third party collection agencies only. If a creditor has its own collection department within the firm, it is not bound by the rules of this law.

Consumers are advised to check with the following if they feel they have been victimized by illegal collection tactics or wish to obtain educational materials on collection agency regulations:

Federal Trade Commission- (877) FTC-HELP (382-4357); http://www.ftc.gov/bcp/menu-credit.htm.

U.S. Postal Inspection Service- [phone]; http://www.usps.com/postalinspectors.

U.S. Attorney's Office (of your region):
http://www.usdoj.gov/usao/offices/index.html

Unless one or both of your parents were co-signers on the credit card application, the collection agency shouldn't be able to touch your parents' assets.

Answer 2

You need to get a personal loan from a bank. These have much lower interest rates than credit cards (about 7% vs 18%). Work with the bank to come up with an acceptable monthly payment. Use the loan to pay off the credit card asap. Parents are irrelevant.

Answer 3

OK, first of all do you have a job? second of all the 13g's is it all under one credit card? if its not you need to look into consolidating it all into one so you'll only have one payment a month rather than 25 of them!.. if your parents can help I'd ask them to do a balance transfer . credit cards always send offers in the mail with low interest for a year and some for the life of the loan. I would do the life of the loan if I was you. another thing to consider is going to your bank (a credit union would be best) and asking them for advice. maybe they can work up a deal for you. lastly if all else fails call the individual creditors tell them that you CANT pay them all at the same time. tell them you WANT to pay them back and tell them if they would be willing to work up a payment plan or settlement (some credit card company will take 1/2 if you guarantee to pay them) Mention that your gonna be FORCED to declare BK so if they want to get paid they have to work with you. YOU be in charge not them.

GOOD LUCK!

Answer 4

If you are the only person on the loan, and you were 18 or older when you entered the contract, there is no way a creditor can do anything to your parents. Creditors will say just about anything to try and scare you into paying them... the bottom line is that the only thing they can do is put derogatory marks on your credit report or take you to small claims court. You also may want to look into one of those credit counseling services, maybe they can help you get on track and get the creditors to stop harrassing you (isn't that what their ads say?)

Good Luck!!!

Answer 5

MKTGRL up above hit the nail on the head and great great job in posting articles from the Collections Act. You put it on your credit cards, and unless your parents are co-signors on the credit cards, the agency can to NOTHING. If the medical expenses happened after your 18th birthday, you are a stand-alone legal adult and your debts are YOURS and not your parents.

The ONLY reason the collection company should be contact ing your parents is if they are unable to locate or contact you. The collection agency may be in violation of Collection Laws and are hoping you are clueless on fair collection policies and they can scare you into paying it. Since the collection agency does not have an issue contacting you, have your parents tell them by phone and by letter to stop calling their number. Any further contact by the agency will be reported to the Better Business Bureau, the Attorney General of your state and theirs as well as the lawyer. Also, have your parents demand that the collection agency's response letter be sent to the family lawyer so that there is legal notification for future reference. If they call after the response letter is received, for any other reason than to locate you, the parents will force all future communication to go through the lawyer.

Answer 6

They can't take your car. The best you can do is to find another credit card company with a better credit payee. You can also try to get a loan from a credit union or bank to pay off your credit card.
In the future: Never tell anyone your personal phone number especially your family"s.

Answer 7

I don't think legally they can. How long ago did you do this? If you were 18 they might have jurisdiction. But I think you might need to speak to a lawyer. The only other alternative is to file bankruptcy "Chapter 13" But you will need legal advice. Anyway this will do a reorganization and clear out all loans that are insecure such as hospital bills, credit cards, etc.. nothing that has collateral. Good Luck!!

Answer 8

No, they can't get your parents in trouble for your credit card bill. If your parents can help you, I would recommend that you make a settlement offer of $8000 to the credit company, then repay your parents. You will have to report the forgiven amount as income, but it will stop the ongoing interest and late fees and save you the interest that has already accrued.

Answer 9

Legally your parents ARE NOT responsible for the debt and can be charged with harassment if they try and bug your parents.

Consult a credit counseling service, or call the credit cards and try to negotiate lower monthly payments with lower interest/no penalties.

Answer 10

Your parents need to tell the collectors who are calling that you don't live in their home and ask to have their names removed from the calling list. If they continue to call I believe they can get in trouble for harrassment.

As for them going after your parents for the money.... Not possible unless your parents are on the credit cards as well. Sounds to me like a very unscrupulous collector trying to scare you. You could try calling a legal aid (free) attorney in your area and see what kind of options you have...

Hope this helps and I really hope things get better for you soon.