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Posts tagged "creditors"

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.

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.

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.

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.

Dealing with credit card debt and concerns about garnishment

Some consumers live in fear of what credit card companies can actually do to them. One question that often arises is whether they can garnish an IRA, especially if the IRA is with the same issuer as the credit card in question.

Using credit cards after bankruptcy

Many Kentucky residents wonder if they can continue to use a credit card after they file for bankruptcy. In the case of a Chapter 7 bankruptcy, there are no restrictions so it is entirely possible to use a new card immediately upon receipt. In the case of a Chapter 13 bankruptcy, any new credit must be approved by the trustee overseeing the bankruptcy case. It may be possible to get new credit after that approval.

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