Today, far too many Americans are drowning in debt and are exposed to regular or weekly coercive debt collection activities. But what are debt collection companies, exactly? They are, in a nutshell, corporations that put the squeeze on customers to pay unpaid bills. Debt forms can vary from medical bills to vehicle bills, from credit cards to bank loans, from bills associated with college to utility bills. Learn more info
In a variety of forms, including telephone and mail contact, debt collection agencies can seek collection. Many third-party collection companies deal with consumers who are owing the money in a charge or percentage basis. In turn, the more cash the entity gets, the higher the commission or charge it receives. A range of methods, such as intimidation, humiliation, and even threats to try to recover, can be used by certain dishonest debt collectors. What do you do if a collection agency is bullying you? Have any of these tips followed.
If you know you owe a debt legally, but can not pay it or can not afford the monthly payments, attempt to create a payment plan or lump sum to settle the debt. If you keep the lines of communication open, several debt collectors are willing to work with you. The collection companies want to be paid too, and some know that when operating within the budget of an individual, it is easier to collect. However, if you are negotiating a settlement or payment agreement, it is important to get it in writing. Debt collection companies have a notoriously high turnover of employees, and when a new collector is appointed to your account, the arrangement you have made verbally with one collector would not be enforceable.
While certain debt collection agencies function within the scope of the statute, many do not. They would rather flood you with letters or then continuously call you to adhere to the Fair Debt Collection Practices Act standards – a federal statute designed to protect customers from misuse of debt collection. By threatening legal action (which is illegal if they have no intention of doing so), by threatening to take your house, drain your bank account, or simply destroy your life, several debt collectors may attempt to intimidate individuals into paying debts. This type of abuse, against the law, is serious wrongdoing and is the basis for a federal lawsuit. You can retain a reasonable debt lawyer’s services, file a complaint with the office of your state Attorney General, and file a complaint with the Federal Trade Commission.