Harassment from CC company

[2amishgirls]

Pennsylvania. My mother is a 55-year old woman on Social Security disability due to emphysema. She has been out of work for 18 months and has been receiving disability payments for approximately one year. She has amassed credit card debt totalling about $25,000. All but one of her credit card companies has worked with her in either forgiving or repaying her debt. The one credit card company that is not working with her is what I have a question about. She purchased their payment protection plan that is supposed to freeze all payments and interest accrual for two years. Apparently her physician filled out the required monthly paperwork, but failed to send it in time. Because of this, the credit card company has refused to honor the protection plan and are now threatening to take her car, furnishings and house. It is an unsecured credit card in her name. Her home is in her and her fiance's name. They are not married, but the CC company is saying they can still take the house. This CC company is owed about $13,000 (it was $9,000, but with interest, late charges, over the limit fees, it has increased substantially).

They are threatening to come to the house and take her belongings if she doesn't pay the balance. They also threatened to take her to court.

Needless to say, this issue is not helping her physical health. Could you please tell me if they can take her house, car, etc. and what rights she has to fight this. Obviously, she has no money for an attorney and my husband and I are not in a position to help her financially.

Thank you.

 

[cmorris]

They would have to first sue her and win a judgment before doing anything. They could, after that, place a lien on the property.

 

[Ladynred]

No, they can't, not in PA for unsecured debt.

To put it bluntly, the threats by this credit card company are pure BULLSH*T ! They can do NONE of those things without suing her first and winning a judgment. Even if they DID sue (which won't come close to happening until the debt gets charged-off), there are exemptions that would protect her home, her car, and her 'stuff'. They are LYING to scare her into paying.

If the house she shares with her fiance is deeded as 'tenancy by entirety', then it is protected from liens and siezures by creditors of either of them.

Unfortuantely, you're dealing with the original creditor, otherwise their threats would be illegal under the FDCPA. In some states, however, original creditors ARE bound by STATE laws that are similar to the FEDERAL law. If that is the case in PA, your mother may have legal recourse against them.

You might want to contact this PA lawyer and ask. He's a consumer lawyer and a pretty nice guy to boot: http://www.pennlawyer.com/
He may not be close to you, but he does know PA law

 

[2amishgirls]

Thanks

Thank you so much for your advice. It's very close to what I thought, but it will make my mom feel better to hear it from someone else. Also, thanks for the attorney's link, he is close to us and we will definitely give him a call.