Getting Out of a Credit Freeze
Using a credit card is going to give you a lot of financial freedom that you may not otherwise have. People with credit and credit cards will be able to make purchases that they may not otherwise be able to make, and they will have money that can be used for potential emergencies or large purchases. However, there is also a lot of responsibility that comes with owning a credit card, and misuse of your card can lead to some penalties. One of those penalties is going to be what is commonly referred to as a credit freeze, or how companies prevent you from using credit, and it is a tool that can be used by your creditors if you are behind on your payments.
Dealing with a Levy
A credit freeze is also commonly referred to as a levy, and understanding a levy will help you know how to deal with one. Essentially, a levy is a freeze that is going to be placed on your credit card that will prevent you from using it further. When this kind of freeze is placed on your account, the creditor may also be able to seize money or property in order to get what is owed to them. If you find that a freeze has been placed on your credit card and a levy has been opened, there are a few things that you will want to do.
The first step in the process of getting out of a credit freeze is going to be contacting the creditor that opened the freeze. In many cases, the debtor will be able to work out some terms with the creditor that will allow them to pay back their loan and avoid seizure of money or property. However, most creditors are going to have a specific amount of time where this kind of action is allowed, and after that point they will proceed with the levy.
If you are too late to stop a credit freeze or levy, you may be able to appeal with your bank or local court. There is a set time period established before creditors can take your property, and you will have this time to try and appeal the levy. If you successfully appeal, you may be granted an extension on the loan, or you will have the opportunity to work out a new plan with the creditor. However, many appeals fail, and it is important that you do your best to speak with your creditor before you reach this point.
Freeze from Fraudulent Activity
It may be that your credit freeze is not from your debt, but is a result of what the company feels is fraudulent activity on your account. For example, if you use your card outside of the country without first advising the creditor of your travel plans, they may decide to freeze the credit. If no fraudulent activity has occurred on the card, you should be able to call the creditor, verify your identity and unfreeze the credit. If fraud has occurred, you will most likely have to cancel the card and opened a new account.
Getting out of a credit freeze can be an easy process if you just do your best to stay on top of your credit history and financial record. The simple tips that we have offered here should help you avoid large problems if you find that a credit freeze has been placed on your account. Use these tips to handle current problems and avoid future issues with your credit card spending.
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State Guides to Credit Card Laws
- North Carolina
- West Virginia