Legal And Illegal Tactics A Debt Collector Will Use To Collect: Debt Collection Basics Part Three
In the first two articles I defined what a delinquent account that had been sent to collection was, how sending late accounts out to an debt collection company benefits a creditor, and the practice of selling an old debt to a third party collection agency.
I described what sort of data a collection company will collect and use in their efforts, and also that third party collection agencies are governed by federal and state laws and are overseen by the FTC.
Some collection agencies will use illegal, deceptive and strong arm tactics to confuse and scare debtors that include pretending that they are one of their creditors and asking them to verify information, pretending to be an old friend or neighbor to catch a debtor off guard, repetitively calling or mailing a debtor to the point where it gets to be a nuisance, or sending threatening letters or leaving threatening voicemail messages.
Legal but manipulative practices include pressing the debtor, preying on their emotions, and using vague threats like “respond within ten days or further collections attempts will follow.” Other illegal practices include making an idle threat of litigation or pursuing litigation when the debt collector has no intention to, threatening to throw a debtor in jail, threatening to garnish wages or seize bank accounts when they have no authority to, lying about the amount that is owed, or asking for more than what is owed are used as well.
For the debt collection industry, time is the enemy and a good debt collector is fully aware of this. Their goal is specifically to obtain money as soon as possible.If you are talking to a debt collector, keep in mind that at any time you have the legal right to tell them you are busy and will call them back if you are flustered, hang up, cool off, develop a game plan, and contact them later. An aggressive debt collector will ask you why you can’t make payment arrangements today.
Rapid Recovery Solution is a commercial collection agency that writes articles on medical collection agencies. Also published at Legal And Illegal Tactics A Debt Collector Will Use To Collect: Debt Collection Basics Part Three.
Fake Debt Consolidation Schemes To Be On The Lookout For Part Two
In the last article I spoke about potentially shady debt consolidation schemes that you should be on the lookout for. Read on to find out more:….
In the meantime, your creditors are not being paid. Unfortunately, while you are accumulating that payment, you are not paying your bills and you may be delving further and further into more debt.Instead of taking this gamble check out a not for profit credit counseling firm that might charge you only twenty dollars, if anything. Instead of billing the debtor, these non profit counselors will generally get what is called a fair share percentage payment from your creditors after your debts have been paid.
Finally, and most important, do NOT automatically trust in the debt settlement counselor who let’s you know that “We will handle everything. You should stop communicating with your creditors.” Despite the thought that the idea of not speaking to creditors and ignoring their mail sounds like it could be a real load off of your back, ultimately, it is your debt, your money owed and your credit score at hand. Never send in a change of address form directing all creditor mail to a debt settlement company.
It is key to remember that the creditor is the one with whom you signed your contractual agreement. When all of your statements are being sent to the debt settlement company, you relinquish that control. You do not know how much in late fees and interest are being tacked on. You also will not know if your debt has been transferred into collections.
A few final words of wisdom. If you think you need debt settlement, try debt management first. Get in touch with your creditors and request reduced interest, suspended payment or any other payment terms that may suit your financial situation more favorably. Although it may seem like a long shot, or a pain, it is always very important if you are about to miss a payment to call your creditor and say “Listen, I can’t make this month’s payment. I’d like to work something out with you.
Rapid Recovery Solution is a commercial debt collection agency. Get a totally unique version of this article from our article submission service
Divorce And Bankruptcy
Divorce, coupled with bankruptcy can pose serious problems for those involved. When a married couple who no longer wants to stay together have debts piling up and are heading for divorce, bankruptcy may be one way to sort out the financial problems. Bankruptcy has the capacity to be filed by just one spouse, or jointly. The effects of bankruptcy on divorce proceedings? Abrupt at best. An automatic stay will put a stop to all activities on divorce proceedings.
Even though one lawyer might seem difficult to deal with in a time of stress, two lawyers might be needed to sort the matters out, a bankruptcy attorney and a divorce lawyer to hash things out between the unhappy couple. Some good advice to take would be to immediately seek out a bankruptcy lawyer to guide you through your finance, in addition to the attorney who is assisting you through your divorce. The expert guidance with alimony, child support, property settlements, and other financial issues is key when you are suffering from the stress of bankruptcy and divorce simultaneously.
If the unhappy couple owes a large deal of shared debt, filing for bankruptcy jointly is a good option. This can even simplify the divorce settlement, and filing bankruptcy jointly is cheaper. If you are a spiteful ex, filing individually for bankruptcy is one way to send the creditors after your spouse.
Then there is the problem of property that you have accumulated during the marriage. That’s marital or community property. If you are filing jointly for bankruptcy, and your former spouse has marked some of your own separate property as marital property, you should take these actions. Firstly, you should attempt to prove what is yours is not community property. The bankruptcy court will release the exempt property, and the remaining property that you share will be part of the bankruptcy estate and therefore will be utilized for paying off debts.
After the bankruptcy court has figured out which property is exempt from bankruptcy, the divorce court can split the property between the spouses equally. The non exempt property will be sold by bankruptcy trustees (representatives) to pay off debts.
A different way to steer clear of financial loss on account of your former spouse’s debt is to attach a property of your spouse as a security lien. This lien will permit you to take hold of the property and utilize it to pay off your spouse’s loan if he or she is thinking of ditching and letting you pay. The property with a lien may get you less than the market price, but this is still a good way to protect yourself.
And in conclusion, you have the ability to work an indemnity clause into your divorce decree. This will help guard you from creditors who are coming after you to pay for your ex spouse’s debts after the divorce. If your husband or wife files for bankruptcy, don’t worry. The judge will enforce it to protect you and your finances.
Rapid Recovery Solution is a medical debt collection agency. You can get a unique content version of this article from the Uber Article Directory.
Horror Stories Of Debt Collection Pt. 1
And you thought your debt collection company was bad! A recent website compiled a list of bad debt collection experiences and these were among the worst. Karen Garrett, the public relations coordinator for Pittsburgh-based nonprofit Advantage Credit Counseling Service thought she had heard it all until her agency received a call from a senior citizen late last year. She had called in tears and told Garrett that bill collectors had called her and told her that they had the police outside. If she did not pay, they were going to drag her to jail.
Debts are strictly a civil matter, not a criminal one, and jail time is definitely not even a punishment for not paying your bills. “It is very important for people to know that there is no such thing as debtor’s prison” Garrett says, smiling and rolling her eyes.
If bill collectors are making unlawful threats like physical violence, deportation and jail time, you can always report the harassment to the Federal Trade Commission or to your state attorney general’s office. The Federal Fair Debt Collection Practices Act prohibits bad behavior by third party collectors. These people do not follow the same rules as those who are collecting for the creditors directly. They are not allowed to call you at your place of employment if you ask them to stop, publish or threaten to publish your debt, reveal to anyone else that you may have a debt, harass you on the phone or use profanity. The laundry list continues.
They cannot utilize loss of child custody, deportation, physical harm or illegal punishment like jail. They can’t call your home before eight AM or after 9 PM or even call at all if you have already asked in writing to cease contact, or if you’ve hired an attorney.
One older woman from New Jersey owed $12,000 in credit card debt after putting day to day living expenses on her card. The debt collector called and told her that they were going to take her home. She was also told that they weren’t willing to take a penny less than the $12,000 she owed, and furthermore, they wanted it now. She attempted to gather the money herself but was unable to. “Debt collection agencies are very intelligent when it comes to doing research. They will threaten targeted assets like a home or income source. But in many states, homes are protected from debt collection,
Mallory Megan works for a debt collection agency. Also she composes articles on business, finance, consumer spending and collection agencies. Get a totally unique version of this article from our article submission service