Debt collection has become an issue with some consumers. Generally, debt collection procedures do not begin until after the lender has tried a variety of ways to get paid what is owed them. Some of the more common methods that lenders use include sending letters of delinquent payment and perhaps placing phone calls to the borrower's home. When these methods have proven to be futile, the lender may pass the loan onto a debt collection agency or company.
In times past, debt collection agencies could and would use a variety of tactics to get people to pay. In some cases these tactics were more along the lines of harassment and intimidation than they were good business practices. It was not uncommon for some agencies to call a borrower's place of work. Some of the more aggressive types would call regularly and that often caused trouble for the worker. Other companies would falsely tell people that they (the debt collection agency) were going to garnish wages if the bill wasn't paid quickly. Many consumers did not know that wage garnishments have to come through a court and cannot be levied by a debt collection agency. There were plenty of other tactics used as well. Some were verbal and some were written.
After years of abuses such as these, the Federal government finally had to step in and impose certain limitations on debt collection agencies. Today, these same types of agencies have to follow guidelines and rules as stated in the Fair Debt Collection Practices Act. Under these rules, collectors are not allowed to do certain things. These include:
Debt collectors may not harass, oppress or abuse anyone. They may not use threats or harm the person, his property or his reputation. In addition, they are not allowed to publish a list of consumers who refuse to pay their debts, except to a credit bureau. The use of obscene or profane language whether in person or over the telephone is strictly prohibited. Repetitive telephone calls to harass the person are also not allowed. Debt collectors are not allowed to use false information in order to get a person to pay up. Unless it is true, debt collectors are not allowed to say that they have attorneys working the case. They may not act as if they are attorneys working on the case unless they really are. They cannot falsely imply that you have committed a crime.
In other matters, they are not allowed to falsely represent that they work for any credit bureau. Debt collectors must not misrepresent the amount of your debt. They cannot tell you that papers being sent to you are legal forms when they are not and vice-versa. They cannot tell you that you will be arrested if you do not pay your debt. In addition, they are not allowed to seize, garnish, attach or sell your property or wages without court approval. Lastly, they cannot try to frighten you by telling you that they are going to take legal action against you if that action is not available as a legal course of action.
You can learn more about your rights and what to do if you are abused by visiting any of the consumer right's websites.
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Just want to be free from dept.
By: Rose | 21-09-2008
I do not own a credit card, how can I get companies to just bill me, rather than always ask for a credit card?
Which mortgage should I pay down first?
By: Emma | 20-09-2008
I have a 1st mortgage on my home, balance of 95K, interest rate is 5.5%, and I need to pay PMI of 45.00 a month until the balance gets down to 85K. I have a 2nd mortgage with a balance of 54K, interest is 6.75%. My question is I will be getting 35 - 40K soon from an inheritence. Should I pay all of it on the 2nd mortgage because the Interest rate is higher, or should I pay 10K on the 1st loan to take the PMI off?
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What's the best way to get $50,000 a year from $1,000,000.00 . for the rest of your life
I am retired and presently have a Sun Trust Money ...
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I am retired and presently have a Sun Trust Money Market is this insured by FDIC. If not where can I place my money that is safe?
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Grace
Should I Pay
By: keela | 20-09-2008
I have cc debt that should be falling off in this year and in 2010 should I pay that debt or invest in larger debt that is continuing thru 2013
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looking to buy property...less than perfect credit...where do i go for help and still get a resonable interest rate and decent payment
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