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Creditor harassment and responding to threats of litigation

From harassing phone calls to threats of litigation, creditor harassment can be terrifying. While the threats are often empty, debtors can be sued for unpaid credit card bills. For many, the first reaction to the threat of litigation is to ignore it. Unfortunately, ignoring legal notification of a lawsuit is far different. Tennessee consumers facing threats of lawsuits over unpaid credit card debt might find the following blog interesting.

While a threat may be talk, a notice means action. If a consumer receives notice that they are being sued over unpaid credit card debt they need to take the matter seriously. How to react, however, depends on a number of factors. The first, and by far the most important factor, is whether the debtor agrees that they owe the debt. To be sure that the debt in question is accurate it is important to carefully review the debt.

If there are any discrepancies or questionable charges it is important to contact a company representative to discuss the matter. In some cases consumers may be the victims of fraud or identity theft. It is equally possible that the company made a mistake. If something is wrong and the company is subjecting a debtor to creditor harassment, it may be time to discuss legal action. There are laws against creditor harassment.

If the amount of the debt is correct and consumers can afford it, the next step is to negotiate a settlement. Companies are often willing to reduce the balance or negotiate beneficial repayment terms to avoid losing out on the money in bankruptcy. If settlement is not a possibility, however, it may be time to speak with a bankruptcy attorney. The important part is to act before the creditor obtains a judgment in a court of law.

Source: ABC, "What to Do If You're Sued By Your Credit Card Company," Gerri Detweiler, August 3, 2013

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