March 6, 2012
PHOENIX (CBS5) -
A bill before the Arizona House of Representatives is intended to be a blueprint for going after people who don't pay their credit-card bills, but some say it protects the industry while hurting Arizona consumers.
The bill's sponsor, Rep. Jeff Dial, a Chandler Republican, said HB 2664 is supposed to protect credit card users while critics maintain it will allow debt buyers to prey on Arizonans who have had their debt dismissed.
Dial said the bill was born after he was approached by the Arizona Creditor's Bar Association.
But Rep. Debbie McCune Davis, D-Phoenix, questions the intent.
"I think the Arizona Legislature should be looking out for Arizona consumers, not for debt buying companies," McCune Davis said.
Dial said the bill lays the ground rules for credit card companies to pursue those who don't pay, something already spelled out in federal law.
"Most states have tightened their laws when it comes to this," McCune Davis said. "Arizona seems to be going the other direction. It makes me wonder who this legislation is looking out for."
Dial refused to explain the exact purpose of the bill when approached by CBS 5 News.
"What she is talking about, that is a concern that's out there, but that's not the issue that this bill deals with. This is about credit card agreements," he said.
Basically, this bill would allow a creditor to show how much someone owes simply by producing a copy of the final bill even, if it's electronic.
"That's a key term in the bill - it refers to electronic correspondence, which could be a name and an account on a spreadsheet and then they go and create lawsuits from this," McCune Davis said.
Hayden Scheider said that is exactly what happened after his son's credit card default ended up on Hayden's credit.
"There was absolutely no proof whatsoever," he said. "They didn't even have the original bill of sale."
Scheider sued the debt collectors and after a two-year battle, finally won.
"When did it become 'guilty by association?'" Scheider asked. "That's what this is. You have to prove that someone owes that debt."
The bill is scheduled to be voted on in the next few days.
Copyright 2012 CBS 5 (Meredith Corporation). All rights reserved.
PHOENIX (CBS5) -
A bill before the Arizona House of Representatives is intended to be a blueprint for going after people who don't pay their credit-card bills, but some say it protects the industry while hurting Arizona consumers.
The bill's sponsor, Rep. Jeff Dial, a Chandler Republican, said HB 2664 is supposed to protect credit card users while critics maintain it will allow debt buyers to prey on Arizonans who have had their debt dismissed.
Dial said the bill was born after he was approached by the Arizona Creditor's Bar Association.
But Rep. Debbie McCune Davis, D-Phoenix, questions the intent.
"I think the Arizona Legislature should be looking out for Arizona consumers, not for debt buying companies," McCune Davis said.
Dial said the bill lays the ground rules for credit card companies to pursue those who don't pay, something already spelled out in federal law.
"Most states have tightened their laws when it comes to this," McCune Davis said. "Arizona seems to be going the other direction. It makes me wonder who this legislation is looking out for."
Dial refused to explain the exact purpose of the bill when approached by CBS 5 News.
"What she is talking about, that is a concern that's out there, but that's not the issue that this bill deals with. This is about credit card agreements," he said.
Basically, this bill would allow a creditor to show how much someone owes simply by producing a copy of the final bill even, if it's electronic.
"That's a key term in the bill - it refers to electronic correspondence, which could be a name and an account on a spreadsheet and then they go and create lawsuits from this," McCune Davis said.
Hayden Scheider said that is exactly what happened after his son's credit card default ended up on Hayden's credit.
"There was absolutely no proof whatsoever," he said. "They didn't even have the original bill of sale."
Scheider sued the debt collectors and after a two-year battle, finally won.
"When did it become 'guilty by association?'" Scheider asked. "That's what this is. You have to prove that someone owes that debt."
The bill is scheduled to be voted on in the next few days.
Copyright 2012 CBS 5 (Meredith Corporation). All rights reserved.
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