The Huggins Law Firm, PA
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July 2015 Archives

Citibank to pay $770 million in fines and restitution

Citibank credit card customers who live in South Carolina might be happy to hear that they could be eligible for some compensation following an agreement between the company and the Consumer Financial Protection Bureau over the financial institution's illegal credit card practices. The agency revealed that the financial services firm will pay $70 million in penalty fines and $700 million to consumers.

Unlawful debt collection practices

South Carolina residents who are attempting to resolve their overwhelming financial obligations are not always legally obligated to deal with creditor harassment. Many of the practices that debt collectors engage in, such as calling at inconvenient times of the day and discussing a person's debt with third parties, are unlawful. The federal Fair Debt Collection Practices Act was set up to protect debtors from this type of harassment.

Notification requirements for collectors

There is no federal law requiring certain bill collectors to send a debtor notice of a debt that is owed. Many South Carolina consumers find out about debts only when they check credit reports, which may be months or years after the debt was originally incurred. There is a practice known as "parking debt" whereby a collector makes no collection efforts and waits to collect the debt until the consumer needs to obtain credit such as a mortgage.

The Huggins Law Firm, PA

Columbia Office
1812 Lincoln Street
Suite 201
Columbia, SC 29201

Phone: 803-764-1558
Fax: 803-764-1563
Columbia Bankruptcy Office

Columbia Office

Charleston Office
925-D Wappoo Road
Charleston, SC 29407

Phone: 843-509-0039
Fax: 866-481-2325
Map & Directions

Charleston Office