It's something every consumer dreads: a call from a debt collectors asking about unpaid credit bills, student loans that are past due, or a medical debt that has been forgotten about for months.
Credit counselors, state regulators, and debt collectors all agree on one thing: ignoring a debt collector's phone calls and letters are not going to help get rid of the debt. The only way to really stop them from bothering you is to deal with the debt, otherwise, it will only get worse.
Here are 4 tips for consumers to help deal with debt collectors.
Avoid them altogether
Contact your original creditor to work out some kind of payment plan that you can handle with your current financial situation. Most financial institutions are open to customized payment plans especially if their clients request for it. If you don't contact them, they will sell the debt to a 3rd party credit or debt collector.
Know your rights
This might just save you from paying thousands of dollars. The FTC or Federal Trade Commission has a collection of publications made to help customers learn about the Fair Debt Collection Practices Act, a law that protects their rights under the act, nuisance and harassing phone calls, abusive language, and threats are illegal.
These should be taken note of and reported to your state's attorney general's office and the FTC. Debt collectors usually have a debt collection lawyer in California working together with them. Try to ask for the contact information of the lawyer so that your lawyer can personally send a complaint to him or her.
Never ignore these phone calls and letters
You have to reply or work on these notices right away. You have the right, according to law, to write or call in for a copy of a verification of the debt being asked of you. Make sure that the debt being collected is actually yours. You also need to make sure that it's not old debt. You could have paid that amount already and the debt collection lawyer in California is using old data from your original creditor.
Get a lawyer
You can't do this alone. It's easier to get a credit lawyer to help you out with the situation. They know everything about the system so any loopholes and problems found in your case can be fixed. You also end up paying money if you get a lawyer since they will check the debt if it matches to how much you really owe.
Every business seems to be in problem all the time, because the art of debt recovery relies on your communication. After all, how you approach is the key to the successful financial recovery process that only Deb collectors understand.
The major advantages of using debt collectors is that;
They are wise -Note that, no one wants to be in debt situation. If your customer is unable to pay you, then there must be some financial situations that are holding them, and this is something a debt collector fully understands and is able to formulate a convenient platform for you to pay up.
They have patience -
Debt hassle is not something that can be resolved within a day, it takes time and a debt collection agent understands that, deals with the customer with ease and timely manner, so that your customers will not get a nightmare every time you give them a notice.
They are confident -
Debt collection is a not easy job, it requires skills, to attain the desired results. Using the service of debt collectors means you will definitely have your debts recovered.
They are goal driven -
It is important that you have the money flow coming to your business. And for that, of course, you need a professional debt collection agent to have your goals fulfilled your dream.
They are responsible -
The licensed collection agency takes all the responsibility on your behalf and helps you to recover all your debt.
So, these are the certain characteristics that convey how debt collectors assist one to recover its debts in order to meet its business goals.
Here are the major cons of using debt collectors;
The debt collectors are quite rude when they interact with the borrowers. This is because they want to compel the people to repay the loan at any cost. The way these agents behave with the borrowers is so harsh that it becomes very difficult for the individuals to bear their attitude. As a result, they always try to avoid being trapped in the hands of the debt collection agencies. The agencies are responsible to help the lenders get back the amount by hook or by crook. For this, they even blemish the image of the borrowers in front of their neighbors and know people. This, in turn, compels the innocent borrowers to commit suicide.
Harassment, Fake Statements, And Unjust Practices - This can be very common among debt collectors. They will almost say anything they can in order to make you pay. They will even get to a point of giving you threats so as to compel you to pay up your debt.
You may receive a call from debt collectors for you to pay up underlying debts. But these collectors of debts are at times so compelling and can end up speaking to you rudely. This is termed t as harassment. The FDCPA regulates the behaviors of debt collectors. The Act clearly defines the limits to which a debt collector should not cross. That guards consumer rights.
If debt collectors obey the rules of the book they will not be exerting pressure on debtors.
There is a way you can move away from all the pressure of the debt collectors by following these simple tips;
Stay calm during the call
Avoid getting into an argument
Do not use foul language
Do not give away your bank details
Ask for debt validation
Send a cease and desist letter
Dispute the debt