Debt Settlement – Have Debt Collection Agencies
As more and more Americans default on their loans and end up not paying their bills far beyond the time period set aside for payment, banks and credit card companies start to get jittery. Just as the debtor is in a financial difficulty aggravated by the economic crisis, the creditors too are facing a lot of heat and would like to ensure that their money is secure. As a result of this, the debt collection agencies are doing a booming business in today’s times as the creditors approach them to ensure that their money is recovered from the debtors.
The debt collection agencies are entitled to legally contact the debtors when the default has gone beyond the prescribed time period. However, these days, there are a lot of consumer complaints about the constant harassment that is being meted out to them by collection agencies. In addition to the financial strain that the debtors face, the harassment can lead to a lot of stress and physical and psychological implications. It is therefore important that as a debtor you know your rights and are able to handle the collection agents better Debt collection agency in london.
A debt collection agency generally makes first contact with the debtor through mail, explaining that failure to pay can lead to further credit damage. It is advised that the debtor takes the help of an attorney so that all further correspondence and conversations can be routed through him / her after the initial contact. It is in the debtor’s best interest to call or reply by mail and not to ignore the first contact. The debtor should send out a letter to the collection agency requesting that the collector not have any more contact with him / her at all. As per the Fair Debt Collections Practices Act, the collections are obliged to abide by this request though it does not take away the fact that the debtor still needs to repay the debt. The debt collection agency cannot harass the debtors with threats of harm, abusive language including profanity or lies. If harassment or tactics outside the realm of decency are been employed by the debt collection agency, the debtor should immediately contact the state Attorney General’s office and the Federal Trade Commission.
