How To Avoid Debt Collection Agencies and Being Sued For Debt
This article explains a few things about debt consolidation and collection agencies, and if you’re interested, then this is worth reading, because you can never tell what you don’t know.
Debt collection agencies are hired to do one thing – collect debt. Often, they receive a commission or purchase your account at a lesser value than you owe. Debt collection is somewhat of an art form, and not every employee may be up to the task.
Debt collection practices, whether by creditors, collection agencies, or attorneys, are a frequent and often emotionally charged source of consumer complaints. Many people finding themselves subject to debt collection may already be experiencing a broad range of financial and personal difficulties. Debt collection problems continue to be a top consumer complaint received by federal and state consumer protection agencies. The federal Fair Debt Collection Practices Act (FDCPA), which was passed in 1977, is intended to prevent abusive, deceptive, and unfair debt collection practices in the marketplace.
Accounts are easily reviewed and updated. Accounts receivables that have been delinquent for a substantial amount of time, 180 days or more, are often purchased by collection agencies, in which case, the agency keeps any cash that it recovers.
Collectors usually are prohibited from contacting such third parties more than once. In most cases, the collector may not tell anyone other than you and your attorney that you owe money. Collectors must state their name and must give the name of their employer if the person specifically asks. A collector may contact each person once, unless it is believed that the person gave the collector incorrect or incomplete information at the time, but now has complete or updated information. Collectors and collection agents may call pressuring people into paying money for past debts. An old debt is one that is older than 7 years or your state’s statute of limitations, whichever is longer.
Creditors hire collection companies to collect debts for them, because they simply don’t have the time or resources to chase down all of their severely overdue accounts. Collection agencies have cheap labor and a streamlined system to pursue such accounts. Creditors also cannot take any of your wages for six (6) months after you have received public assistance based on need. If you deposit your public assistance in a bank account, creditors cannot garnish your account for 60 days.
Maxed Out shows how the modern financial industry really works, explains the true definition of “preferred customer” and tells us why the poor are getting poorer and the rich getting richer. By turns hilarious and profoundly disturbing, Maxed Out paints a picture of a national nightmare which is all too real for most of us. Maximum collection is our number one priority as your debt collection agency. If you are a large corporate or a small business we help simplify your debt collection process.
Creditors cannot use “self-help” like an automobile lender, or foreclose like a mortgage lender. In a worst case scenario, a credit card lender has to file a lawsuit against you, win a judgment, and turn that judgment into a wage garnishment or bank account levy – a process that takes time and money.
Don’t limit yourself by refusing to learn the details about debt consolidation. The more you know, the easier it will be to focus on what’s important.
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