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Posts tagged "credit cards"

Easing credit restrictions may help Kentucky borrowers

According to a Federal Reserve Bank of New York survey released in February 2015, borrowers with credit scores under 680 had a roughly 50 percent chance of increasing their credit card limits. This represents an increase from October 2014, where a similar survey showed that borrowers with subprime credit scores had a success rate of roughly 33 percent. While this may be good news for borrowers with checkered credit pasts, it has consumer advocates concerned.

How the 2009 Credit CARD Act limits interest rate increases

Kentucky residents may be aware that the 2009 Credit CARD Act placed restrictions on credit card interest rate increases. Issuers are still allowed to increase rates in certain situations, but they must notify consumers in writing 45 days before the new rate goes into effect. The law also allows consumers to decline the new interest rate and pay off their outstanding balance.

Credit card debt climbs

Though defaults on credit card payments reached a six-year low last year, Kentucky and the rest of the United States added a record-breaking $57.1 billion in net credit card debt. These and other findings related to American consumer debt are based on the results of a recently released CardHub survey.

Improving credit by managing credit card usage

People in Kentucky can work on improving their credit simply by managing credit card debt, making payments on time and proactively checking their accounts every day. After time passes, they can see their credit scores improve as a result.

Another way of looking at credit card debt

Many people in Kentucky carry high levels of credit card and other types of consumer debt. Some tend to use credit cards in order to purchase things they cannot otherwise afford. It is important for people to try to address their credit card debt, as significant debt levels can cause many financial problems.

What can be done to stop debt collectors from contacting me?

Creditors have the legal right to contact debtors via various means, including through mail and over the phone. Debts that collectors might go after include unsecured credit cards, medical bills, home loans and auto loans. The Fair Debt Collection Practices Act determines what creditors and debt collection agencies can and cannot do. When a consumer defaults on a debt that they owe, the creditor can hire a debt collection agency to collect on that debt.

Kentucky and the national credit card debt

Kentucky residents partake in the national trend towards increasing credit card debt. The combined households of America currently owe as much as $11.71 trillion. This number has increased about 3 percent since 2013. This means that the average household that carries debt has approximately $15,608 that they are liable for.

Understanding the 1099-C cancellation of debt form

Kentucky residents who have unsecured debt like medical bills or maxed out credit cards may want to learn about the 1099-C form. The 1099-C 'cancellation of debt" form is an IRS document that is sent to individuals after some types of debts are either canceled or forgiven. Although former debtors may think they owe nothing once a debt is resolved, they might owe something to the IRS during tax season.

Restrictions on debt collectors under federal law

The Fair Debt Collection Practices Act places restrictions on what debt collectors may do when attempting to collect an overdue credit card debt from a Kentucky resident. For example, a debt collector may not call before 8 a.m. or after 9 p.m. without permission to do so. They are also prohibited from calling a debtor at work unless given permission to do so.

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