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.
Student Loan Consolidation Might Be Your Best Bet For Debt
Income is limited these days for everyone, who struggles to maintain the standard of living. In the past, loans carried you through college, but now that you\’re out these debts have come out to haunt you. You may be contacted by various debt collectors and left a frantic mess seeking someone who can help you with a school loan consolidation.
The majority of students that have just finished their education and are currently looking for jobs try for federal school loan consolidation first. This loan is beneficial in a number of ways. First, the government is the source of this loan but it is issued by private lenders. That means that the time you have to repay the loan can be extended for a long duration.
Maybe the most tempting aspect of school loan consolidation is that the multiple student loans are substituted with just one loan. The overall sum of the debt is reduced; at times this reduction can even go up to 60%. This, of course leads to reduction in your monthly payment.
Even better, the new rate of interest is founded on the weighted average of the rates that are applicable on your present loans. You\’ll also get rid of the mental stress associated with remembering the details about multiple loans. Consolidation does not require a cosigner or any checking of the credit score, and you can utilize this opportunity to improve the credit score or rating.
The only drawback is it is extremely hard to prove yourself eligible for the federal school loan consolidation. Typically, you will need the assistance of a good debt consolidation expert to prove that you are eligible for this kind of consolidation. The standards to be qualified for this loan are very rigid, leaving many ineligible for the loan. Nevertheless, it is worthwhile to check to see if you qualify. It could be a good resource for protecting your finances in the future.
Mallory McGuinnessworks for a debt collection agency. She also writes articles on the credit industry, business and finance, and debt collection. Visit the Uber Article Directory to get a totally unique version of this article for reprint.