• Tennessee has laws governing credit card debt.credit card image by jimcox40 from Fotolia.com
  
  Consumers use credit cards all the time. Unfortunately, they can sometimes run into problems repaying those debts, and can be faced with the uncomfortable reality of collections proceedings and even lawsuits. In Tennessee, specific laws govern how credit card debt can be collected by credit card companies as well what consumers can do to protect themselves when faced with this situation.
  
  

Limits on Debt

• When credit card debt is incurred in Tennessee, there are statutes of limitations that apply to any attempt to collect on it. Statutes of limitations impose a time limit on the credit card companies that want to collect any unpaid debts. In Tennessee, the statute of limitations on all debts is six years. So, if a card holder doesn't pay his credit card bill, the credit card company has six years from the date on which the payment was due to sue. If they don't file within that time, they are generally barred from recovering the debt.
  
  

Limits on Judgments

• If the credit card company sues within the six-year period and wins, they are awarded a judgment by the court. This is a court order awarding them the legal right to collect on the debt. Like the statute of limitations on debts, there is a limit on the amount of time a judgment holder has to collect. In Tennessee, that period is 10 years. This is how long the creditor has to get the debtor to pay, or to file a garnishment, lien or any other legally allowed collections practice. If the credit card company hasn't collected on the judgment in that time, they are generally barred from doing so.
  
  

Limits on Collections

• Whenever a debtor in Tennessee is subject to collections, whether on an unpaid debt or an unpaid judgment, federal law restricts how those collections actions can happen. The Fair Debt Collections Practices act limits the actions creditors and collections agencies can take, though it cannot prevent them from suing to recover a debt or taking other appropriate action. Creditors, for example, cannot contact your family members, employers or anyone else who isn't responsible for the credit card debt. They can't threaten to sue you or file a garnishment unless they intend to do so; and if you demand they stop contacting you, they have to comply, though they can still sue you or pursue garnishments or other actions allowed under the law.