I had a man from a debt management (credit counseling agency) tell me that if a credit card company took you to court and got a judgement, then they could take things out of your home if you bought them with the credit card such as furniture, appliances, etc.
Was he just telling me this to try and get me to sign up with his company or is this true, can a CC company really do this?
I have a CC debt, but no household furniture was bought on it.
2007-04-26 14:44:20 · 9 answers · asked by jsb4122 1 in Business & Finance ➔ Credit
No, this was not the collection agency that told me this. it was a man from a credit counseling agency. I was talking with them to try and see if I could get help with the debt.
2007-04-26 15:30:04 · update #1
If it is Unsecured debt, which credit cards are, they can not do that. Even if you bought the furniture on the credit card in question they could not take it back. If you read the terms and conditions of the card there will be a line to the effect that "They do not maintain a security interest on the items purchased"
They are not allowed to threaten you with actions they can not legally take or have no intention of taking. If you are in the US this may be a violation of the Fair Credit Reporting Act. It really depends on exactly what he said. If it is you can actually file suit against them for damages, I beleive the current amount is $1000 per violation.
Now they can take still take you to court. But the court may allow them to garnish your wages or try to attach your bank account but they can not take your physical property for unsecured debt.
If he calls again, get his name, phone number, the time and date he called. Let him know that that it sounds like a violation of the FCRA and if they call again you will pursue legal action.
2007-04-26 15:10:29 · answer #1 · answered by OC1999 7 · 1⤊ 0⤋
CC companies do not take belonging
now if you had a department store credit line be it from an electronic or furniture store that's a different story. But since CC companies do not physically sell the merchandise but are merely vehicles of credit for such purchases as such, they cannot enter your house and retrieve items like a specilized store that has associated credit can.
They can only get judgements against you ( and hence why those judgements stay on for a long time ) which then go on your credit profile. keep in mind they also have no method of retrieving and storing such items for resale and lowered costs.
stay away from such people who blatantly tell such lies
he after all gets a commission from everyone he signs up
2007-04-26 17:23:54 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I would question this. If a collection agency takes you to court and wins, all they have is a judgement on a piece of paper. In fact, I'd check the fair credit act to see if what this collection agent told you was illegal. They're not supposed to lie to you about things like taking your furniture or throwing you in jail. You could actually sue them for that and get them into BIG trouble with Uncle Sam.
2007-04-26 15:09:24 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Nope, only if repo is stipulated in a contract. Generally you'll see this on high dollar items, car, houses, boats ect. I think it's called the fair debt collection act that sets the guidelines on what CC companies can/can't do, taking your home is not within their discretion. However, they can sue you and obtain a judgement. If you don't pay, they can put a lien on your house. That's when you see a bankruptcy lawyer. Kitty Kats advice is wrong, they can't take anything, they can only place lien on your home.
2016-04-01 09:15:10 · answer #4 · answered by ? 4 · 0⤊ 0⤋
No, that is illegal for him to tell you that. They are trying to scare you. If a judgement is passed on you it just simply means that the judge wants you to pay them back, and you can make payment arraingements. Go to www.adviceontime.com and read the article on credit, this will help you out.
2007-04-26 16:47:13 · answer #5 · answered by MI6 2 · 0⤊ 0⤋
Any creditor can repossess goods purchased and not paid for. However, it is unlikely that a credit card company would do this. It is more likely that they would put a lien against your income and have payments taken directly from your paycheck.
2007-04-26 14:59:31 · answer #6 · answered by Truth is elusive 7 · 1⤊ 1⤋
He was lying to you
If they sue and win, they cannot seize property to satisfy an unsecured debt.
It's just my opinion, but I would stay as far away from that CRO as possible.
You might want to read the following links from the FTC
http://www.ftc.gov/bcp/conline/pubs/credit/repair.shtm
http://www.ftc.gov/bcp/conline/pubs/credit/kneedeep.Shtm
http://www.ftc.gov/os/statutes/croa/croa.shtm
2007-04-26 16:13:32 · answer #7 · answered by echo 7 · 1⤊ 0⤋
no, i'm afraid that this is true in most states.
It actually happened to somebody my mother knew a long time ago.
they actually even have the right to take your house and just about anything that belongs to you.
lifes harsh huh?
2007-04-26 14:55:44 · answer #8 · answered by crisis 4 · 0⤊ 3⤋
i think you can find a great help in:
www.gadwood.com\index1.html
2007-04-28 08:58:23 · answer #9 · answered by body 2 · 0⤊ 0⤋