- The state of Florida follows credit card laws passed by the FTCcredit card image by Aleksandr Lobanov from Fotolia.com
The state of Florida adopts laws passed by the Federal Trade Commission (FTC). These laws regulate the operation of credit card companies with respect to cardholder agreements, practices and debt collection. Florida has its own statute of limitations on how much time can pass before a debt can be legally enforced. - The Credit Card Act of 2009 regulates the performance of credit card companies with respect to consumer cardholder balances. In most cases, fees for late payments are limited to $25. A 45-day notice is required to be sent to all consumers regarding any significant change to the cardholder agreement. This includes interest rate changes. If you have entered a payment plan with a credit card company and have failed to honor the agreement by making payments on time, this rule does not apply. For credit limits that have been exceeded, consumers may not be charged more than the amount of the excess. For example, if a cardholder exceeded their credit limit by $10, they would be charged a $10 fee. The Credit Act of 2009 also states that credit card payments must be applied to the highest interest rate balances first.
- The state of Florida subscribes to the federal Fair Debt Collections Practices Act (FDCPA). The act governs how credit card companies collect consumer credit card debt. Under the FDCPA, creditors and debt collectors cannot contact consumers at times or places when they know it is inconvenient to the consumer. They are also not allowed to contact consumers at their place of employment if it is prohibited by their employer. If a consumer is represented by an attorney, credit card debt collectors must contact the legal counsel instead. The FDCPA prohibits communication with third parties regarding debt collection unless it is with an attorney, credit reporting agency or authorized by a judicial court.
- The Fair Credit Reporting Act (FCRA) protects consumers by making sure information reported by creditors and credit agencies is accurate and fair. It also makes sure that information is held in confidence and consumer privacy is respected. According to the FCRA, a consumer is allowed to dispute information on their credit report with the credit bureaus or agencies. Once an item is formally disputed, the credit agency is required to launch an investigation that includes contacting information providers like credit card companies. The credit card companies must address the information contained in the dispute. Any changes made to your credit report as a result of the dispute must be furnished to you in writing along with a free copy of your credit report.
- The statute of limitations in the state of Florida for credit card debt is five years. A credit-card debt collector has five years from the account's last activity date to legally enforce the debt. This does not mean they cannot contact you to try and collect the balance. They may not, however, bring the matter before a court of law after the statute of limitations has expired. Cardholder agreements may include clauses stating the laws of the card issuer's state take priority over the cardholder or consumer's state of residence. If the card issuer is based in Nebraska and the cardholder resides in Florida, the statute of limitations in Nebraska may apply.
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