How To Deal With Unethical Debt

Finance Debt collection is rarely a pleasant business, and unethical debt collectors are an unfortunate spin-off relating to this field. In this article we examine your rights when it comes to debt, how you can protect these rights, and what you can do if you feel that they are being violated. Firstly we will briefly touch upon how your debt can come into the hands of a debt collection agency: Failing to meet your agreed repayments on a financial product, such as an unsecured personal loan or a credit card, will almost certainly result in a barrage of telephone calls and letters from the creditor asking you to rectify your account. Failure to do so, or doing so but then continually missing future payments may eventually see your account suspended, and the debt passed on to a debt collection agency. Many bigger credit companies have their own, in-house debt recovery departments, who will follow the appropriate legal steps in an attempt to recover the money from you. Unfortunately, smaller companies often do not have this facility, and will often sell your debt to an independent debt collection agency. By this stage it is too late to speak to the original creditor, and you now owe the debt to the collection company. This company will likely have either paid just a few cents in the dollar for your debt, or will be working for a percentage commission. Either way, the more money that they recover from you, the more they will make for themselves. As a result of this, the more unethical debt collectors will usually play hardball, and often demand immediate payment of the debt in full, and it is not uncommon for them to threaten you with court action if you fail to meet their demands. Although this is possible, in reality unethical debt collectors do not want it to get to this stage, as court proceedings will be both costly and time consuming for them. The main piece of advice is to try and work with the collection agency and come to some form of mutual agreement. Perhaps offer a partial payment or try and work out a payment plan that will pay off the debt without ruining you financially. If you find yourself in this situation it is a good idea to learn the basics of the 1977 Fair Debt Collection Practices Act. Examples of these include that debt collectors must be honest at all times, may not call you repeatedly or at an unsuitable hour and may not use threatening or obscene language. It is also important to keep record of all letters and telephone calls. If you feel that an unethical debt collector has violated the terms of the 1977 act, you should contact a consumer attorney, a consumer protection agency or the American Collectors Association. Dealing with unethical debt collectors can be stressful, but knowing your rights can vastly reduce the burden, and allow you to come to an agreement that will satisfy all parties concerned. About the Author: 相关的主题文章: