Know about Debt Collectors And The Games They Play
Debt Collectors keep a bad reputation. Rightfully hence. Myriad of them cut advantage of the truth that most Americans don ‘ t know their rights swivel the collection of a debt. In scale to collect a debt, crowded of them will reviling, misrepresent facts, or commit charlatan in disposition for a debtor to pay the debt collector. Know about Debt Collectors And The Games They Play
What follows is an pushover – to – deduce breakdown of a public constitution published in that the Unprejudiced Debt Collection Practices Act ( FDCPA ). This set of laws was created to protect the rights of consumers stare the collection of a debt.
We will cover lone the most frequent situations that happen, through ace are manifold statutes that protect you. For a comprehensive brochure, sojourn the National Trade Commission ( FTC ) website @ www. ftc. gov / bcp / edu / pubs / consumer / credit / cre18. shtm But pioneer, contract ‘ s jump off plant a basic generous of the development of collecting a debt.
Save in soundness that your creditors are not debt collectors. If you are slow on a payment, your creditors will wittily undertaking to collect a payment. However, when a debtor is about 90 – 120 days behind on a credit determine payment, the creditor will normally sell the statement to a collection agency.
The collection agency ( debt collector ) will exertion to collect the debt in full. They are often not fired in obtaining rag payments.
If the debt collector presently fails to collect the debt, they may gang around to sell the statement to spare collection agency. If you over plain a collection understanding from a debt collector and subsequent on manifest farther letter from a unsimilar company, physical ‘ s usuallybecause the debt has been resold.
If, hard by 4 – 6 months, the debt was not trifling, the original creditor will ” charge – guillotine ” the statement. This means that the creditor climactically gives up hard to collect the debt.
The creditor will report the account to the credit bureaus since a ” charge – dump “, and your credit report will give forth sound wherefore. The creditor gives up laborious to collect, and walks away from the debt and take a loss.
However, the debtor is still chargeable for the for nothing debt, and unfeigned will progress on the debtor ‘ s credit report for 7 agedness coterminous the date that the statement was hysterical – put away.
O. K., immediately that you hold a basic empathetic of the debt collection progress, and you know the legal definition of a debt collector, charter ‘ s dawning.
Communications of a debt collector to someone other than the debtor
If a debt collector cannot locate the debtor, and speaks to someone other than the debtor, jibing owing to a consort or relative, he may not state the scope of the call. He longing not disclose that he is unyielding to collect a debt. Further, he may not communicate with the same person more than once.
In addition, he may not communicate via postcard. He cannot use any language or symbol on the envelope that indicates that he is a debt collector.
If the debt collector knows that the debtor is being represented by legal counsel, he may only communicate with the attorney, unless the attorney does not respond to the debt collector in a reasonable time. Communication of a debt collector with the debtor, Know about Debt Collectors And The Games They Play
A debt collector may not communicate with a debt collector if:
1. The time or place is inconvenient to the debtor. Also, he cannot call the debtor before 8am and after 9pm.
2. The debtor is at his place of employment and the employer prohibits such communications.
3. The debtor informs the debt collector that he refuses to pay the debt, or that he wants to cease communications with the debt collector. If so, then the debt collector may inform the debtor that the creditor, or debt collector may take legal action in order to attempt to collect the debt.
Harassment or abuse
A debt collector may not harass a debtor. This includes verbal threats of harm to the debtor, the debtor ‘ s family, his property, or his reputation.
He may not use obscene or foul language, or repeatedly call the debtor to annoy, abuse or harass him. If a debt collector calls, he must identify himself.
False, deceptive or misleading representation
The debt collector may not state that he is an official officer or employee of the government. Also, he may not mislead the debtor into believing that he is an attorney, if he is not.
He may not misstate the amount or legal status of a debt.
The debt collector may not state that the failure to pay a debt will result in imprisonment, wage garnishment, or asset seizure unless it is lawful and he informs the debtor that the creditor or debt collector intends to take legal action.
The use, or distribution of a false document to facilitate the payment of a debt.
The false misrepresentation that documents are not legal, and require no action on the part of the debtor.
Validation of a debt
Within five days of the initial communication with the debtor, the debt collector must send the debtor a written notice containing:
1. The amount of the debt owed.
2. The name of the creditor to whom the debt is owed.
3. A statement that if the debtor doesn ‘ t dispute the validity of the debt within 30 days, the debt collector will assume the debt to be valid.
4. A statement that if the debtor dispute ‘ s the debt to be valid within the 30 day period, the debt collector must provide the debtor with a copy of the original contract between creditor and debtor, or a copy of the judgment ( if applicable ) that the debt is valid.
Legal actions by debtors
If the debt collector is proved to be in violation of the FDCPA, the debtor may file lawsuit, and seek damages in the amount of $1, 000. Know about Debt Collectors And The Games They Play