What Is Credit Abuse: What Are the Different Types?
What Is Credit Abuse: What Are the Different Types?
What Is Credit Abuse
Facing accusations of credit card fraud—often called credit card abuse—can disrupt many aspects of your life. Depending on the circumstances, criminal charges such as access device fraud under Louisiana Revised Statutes § 14:70.4 (sometimes alongside statutes like R.S. 14:67.3 or R.S. 14:67.11) may lead to penalties such as fines, restitution, probation, or imprisonment, subject to judicial discretion and the facts of the case. A conviction will generally create a criminal record, impacting employment and housing opportunities. Louisiana provides for the expungement of certain criminal records under La. Code Crim. P. art. 977 (misdemeanors) and art. 978 (felonies) when eligibility requirements are met. As of January 1, 2025, expungement filing fees are eliminated, and a new automated process allows qualifying individuals to clear eligible records more easily. However, violent crimes, sex offenses, and crimes against minors generally remain ineligible for expungement, and all expunged records are still accessible to law enforcement and licensing boards. Understanding credit abuse is important because it involves both financial responsibility and legal accountability. Seeking legal assistance early helps protect your rights and navigate the legal process, which varies with the statute, jurisdiction, and case complexity. While the legal system can be complicated, gaining knowledge equips you to make informed decisions. With appropriate guidance, you can protect your rights, collect the necessary evidence, and develop a defense suited to your case.
If you are facing credit card fraud charges, Attorney David E. Stanley, APLC, offers legal counsel tailored to your circumstances. Our firm represents individuals charged with credit abuse matters, including credit card fraud, identity theft, and predatory lending. We carefully review each case to develop a defense strategy focused on protecting your rights and future. Having experienced legal guidance can help you move through the legal process with greater clarity. Contact David E. Stanley, APLC, to schedule a confidential consultation about your case and available legal options.
What Is Credit Abuse?
Credit abuse refers to the misuse or unlawful handling of credit in ways that can result in both civil and criminal consequences. It often includes actions such as credit card fraud, identity theft, knowingly providing false information on a credit application, or using another person’s financial information without permission. On the other side, it may also involve predatory or deceptive practices by lenders, such as charging unfair interest rates or hiding fees that take advantage of consumers. When addressing credit abuse, courts consider the intent behind the conduct, the methods used, and the harm caused to individuals, businesses, or financial institutions. Depending on the seriousness of the offense, penalties may include large fines, restitution to victims, damaged credit history, and, in severe cases, imprisonment. Because these cases can quickly become complex, individuals accused of credit abuse or those victimized by it often seek legal representation to understand their rights and build a strong defense or claim.
The Different Types of Credit Abuse
Personal Misuse of Credit
Personal misuse of credit is one of the most common types of credit abuse. It happens when someone overspends on credit cards, relies too heavily on borrowed money, or consistently misses payment deadlines. While personal misuse of credit may not always constitute a criminal offense, certain actions like fraud or intentional deception could have legal consequences. Regardless, it creates financial strain and damages credit history. Over time, this misuse can make it harder to qualify for loans, rent housing, or even secure employment in certain industries. Many people underestimate how quickly interest rates and fees can pile up, causing long-term debt that is difficult to manage without changing spending habits or seeking professional financial guidance.
Credit Card Fraud
Credit card fraud is a serious type of credit abuse that happens when someone uses another person’s card or account information without authorization. This conduct may involve stolen cards, cloned numbers, or online breaches that expose account details. Offenders may attempt purchases, withdraw funds, or open accounts in another person’s name. Victims often face financial loss, credit score impacts, and the burden of disputing unauthorized charges. In Louisiana, such conduct is typically prosecuted under La. R.S. § 14:70.4 (Access Device Fraud) and, in certain cases, may also involve R.S. 14:67.3 or R.S. 14:67.11. If proven beyond a reasonable doubt, penalties may include fines, restitution, probation, or imprisonment, depending on the circumstances and judicial discretion. Promptly reporting suspected fraud to law enforcement and consulting an attorney can help protect your rights.
Identity Theft
Identity theft involves someone unlawfully using another person’s personal information—such as a Social Security number, date of birth, or bank account details—to open credit accounts or obtain loans. Often, victims discover the theft only when they receive bills for accounts they did not authorize. Resolving issues caused by identity theft can take years, affecting credit reports, loan obligations, and even tax records. Under La. R.S. § 14:67.16, penalties for identity theft vary depending on the details of the case and may range from misdemeanor to felony charges, influenced by factors like the amount involved and the offender’s prior record. Promptly reporting suspected identity theft to the authorities and consulting a qualified attorney can help limit the impact and navigate the legal process.
Predatory Lending
Predatory lending involves practices where lenders provide loans to borrowers who may not fully understand the terms or who seek urgent financial assistance. These loans can include high interest rates, additional fees, or hidden conditions that can contribute to ongoing debt. Payday loans are often associated with such practices. While they may offer short-term relief, they can result in significant repayment challenges over time.
Co-Signing Abuse
Co-signing a loan or credit agreement is a significant commitment that shares repayment responsibility equally. The co-signer becomes legally accountable if the primary borrower fails to pay. This responsibility may affect personal relationships, create unexpected financial obligations, and impact the co-signer’s credit score. Many individuals may not fully understand these risks until after co-signing. Generally, co-signers are jointly liable for the debt and can face collection efforts or legal action even if they did not benefit from the loan.
Aggressive Debt Collection
Aggressive debt collection is a form of credit abuse that goes beyond lawful repayment efforts. Creditors and collection agencies may contact borrowers about overdue accounts, but they must comply with the law. When tactics involve harassment, threats, or misleading statements, the conduct may be considered abusive. Consumers often face repeated phone calls, letters, or unfounded threats of legal action. Such actions may violate consumer protection laws, including the federal Fair Debt Collection Practices Act (FDCPA) and the Louisiana Unfair Trade Practices and Consumer Protection Act (La. R.S. § 51:1401 et seq.), depending on the circumstances. Individuals subjected to aggressive debt collection have legal rights, and seeking legal counsel can provide options for addressing unlawful practices and protecting personal interests.
Business or Institutional Abuse
Credit abuse can also arise at the business or institutional level. Financial institutions, including banks and credit card companies, may engage in practices such as deceptive advertising, adding hidden fees, or inaccurately reporting credit information. These actions can negatively affect consumers, leading to financial losses and lower credit scores. When uncovered, such conduct may result in lawsuits, government penalties, or consumer restitution. Recognizing that both individuals and organizations can misuse credit systems is important. Consumers benefit from staying attentive by reviewing account statements and contracts closely.
Frequently Asked Questions
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What Is an Example of Credit Card Abuse?
An example of credit card abuse is when someone uses another person’s credit card without permission to make purchases. It can include stealing the physical card, using stolen account information online, or opening new accounts under someone else’s name. Such actions are considered fraudulent and can lead to financial harm for the victim and legal consequences for the offender.
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What Are Two Warning Signs of Credit Card Abuse?
Two warning signs of credit card abuse are unexpected charges on your statement and sudden drops in your credit score. If you see purchases you didn’t make or your available credit decreases without explanation, it may signal unauthorized use. Another red flag is receiving bills or collection notices for accounts you never opened. Spotting these warning signs early can help prevent further financial damage.
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How Do People Abuse Credit Cards?
People abuse credit cards in several ways, including overspending without the ability to repay or deliberately avoiding payments. Others may use stolen cards or account information to make unauthorized purchases. Abuse can also involve cash advances that create unmanageable debt. Whether intentional or accidental, these behaviors can cause long-term financial problems, including damaged credit reports, collection actions, and potential legal charges depending on the situation.
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What Is a Charge of Credit Card Abuse?
A charge commonly called credit card abuse is prosecuted in Louisiana as access device fraud under La. R.S. § 14:70.4. This law covers situations where someone intentionally uses, possesses, transfers, or creates an access device, such as a credit or debit card, without authorization. The charge may involve theft, unauthorized use, or providing false information to obtain credit. Being charged means the state believes there is sufficient evidence to proceed with prosecution. Penalties can include fines, restitution, and potentially imprisonment upon conviction.
Credit Card Abuse Defense Lawyer in Baton Rouge
Facing a credit card abuse charge is a serious matter with potential long-term consequences. These situations often bring stress and uncertainty, making it important to seek clear legal guidance. By understanding how the law defines credit abuse, you can take proactive steps to protect your rights and prepare an informed defense.
David E. Stanley, APLC, represents individuals in Baton Rouge and surrounding areas facing credit card fraud allegations, commonly referred to as credit card abuse. Our firm reviews each case carefully, provides straightforward explanations of the legal process, and develops strategies tailored to each client’s circumstances. You do not have to handle these challenges on your own—David E. Stanley, APLC, is available to discuss your situation and potential defense options.
David E. Stanley, APLC
1055 Laurel Street, Suite 2 Baton Rouge, LA 70802
225-926-0200
Disclaimer: This article is provided for general informational purposes only and does not constitute legal advice. You should not act or rely on any content herein without first consulting a licensed attorney in your jurisdiction. Viewing or interacting with this material—including submitting a form, sending a message, making a call, or leaving a voicemail—does not create an attorney-client relationship. That relationship is only established through a mutually executed engagement agreement. Legal requirements vary by jurisdiction and are subject to change. Always consult a qualified legal professional regarding your specific circumstances.
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