Arizona residents who are being harassed by creditors may be interested in a Michigan woman's response to overdue charges at Kohl's, the well-known department store chain. The woman has filed a lawsuit against Kohl's for unfair collection practices in relation to the bill.
The original amount of the bill was $20, and with interest and late fees it grew to $100. Although the $20 bill was legitimate, the woman has refused paying it since she believes Kohl's violated her rights with late night and early morning telephone calls. Her attorney believes that Kohl's actions were unlawful and violated the Telephone Consumer Protection Act, federal legislation that makes it unlawful for companies to call cell phones with an automatic dialer or using prerecorded voice messages unless the person receiving the call agrees.
If a company that specializes in debt collection was involved, it may be in violation of the Fair Debt Collection Practices Act as well. This makes it unlawful for collection agencies to call outside of the hours of 8:00 a.m. and 9:00 p.m. without permission from the person they are calling. However, whether the woman is successful in her lawsuit against Kohl's or not, her credit rating might be hurt. By refusing to pay, her credit scores may be lowered.
Adverse collection practices, as in this case, are problematic for many individuals. Not being able to pay debt often compounds itself. Debtors contemplating bankruptcy may have questions about which debts may be discharged and the impact bankruptcy might have on future credit. Consulting an attorney may provide insight into bankruptcy as a way of eliminating debt, and the attorney can explain the requirements.
Source: Low Cards, "Woman Sues Kohl’s Over Harassment for $20 Credit Card Bill", Lynn Oldshue, June 26, 2014