It seems a bit painful for some debtors to receive hundreds of phone calls and reminder every day.
This affects both emotionally and psychologically. The debt collectors try hard to reach their debtors from these media. As a result, the phone calls and emails become a scary experience for the debtor.
While studying on the psychological sides of this interaction, the reason has come out. Scaring the debtor is a powerful trick for the lenders to collect their money in a short time. But if you know about your rights under the section of the Federal Fair Debt Collection Practices Amendment.
The act will help you to sort out a proper and fair interaction with the creditor or debt collector. And, of course, it will enhance your power to deal with the reminder sessions. There are some important points discussed following according to the act for the negotiation with your lender.
Sorting out the collectors
The banks and Credit Card Company do not have sufficient time to collect debt from the debtors. So, hiring a collection company is a profitable option for them. The companies get a part of the total collection as commission. They can also charge the debtor as a power of attorney. It is known as purchasing debts. On the other hand, the callers get a part of the collected debt too.
Well, as the collection company can earn a big amount of money, they will try the heart and soul to collect the optimum amount of debt from their list. This trick can create a problematic situation for both the giver and taker.
Let’s take a look on them.
If the collection company threats you, it means they are violating a law. They do not have any right to put a person under violence.
When the collection company will call you again and again, this is also outrageous. Excessive calls from them must be reported.
Tell them not to call your job place. While you are working at a place, they cannot just call you to hamper your job. Of course, your relatives are not a part of the credit. So, they cannot call them and tell anything about the loan or crediting delay.The calling time is fixed by the act as 8am- 9pm. For the last suggestion, if they violate any of the upward acts, just contact with a personal lawyer for getting legal aid.
In most cases, people who stop making payments to creditors do not do so intentionally. Studies have shown that the main reason why people fail to cover payments or get more debt is loss of employment, health reasons or changes in family status such as divorce.
Independent debt collection agencies generally earn a percentage of any amount they collect. This depends on your business. Bullying is a central part of your success. They stand out for the use of threats, humiliation, misrepresentation, among other forms of harassment to get you to pay. It is very important that you remain calm in response to these threats and know your rights in accordance with the Law.
Do not give the collector what he or she wants, which is intimidating for you to give them money. Realize how little they can do apart from the multiple threats that one might get to read in the letters sent by those agencies or listen through the telephone calls of those agencies. For example, a very common tactic is to continually call the debtor over the phone. The purpose of these telephone calls is not only to demand payment, but also to try to persuade the debtor to talk and provide information that may be of great help in the collection of debt.
What is the Fair Debt Collection Practices Act (FDCPA)?
The FDCPA is a federal law that protects consumers against unfair and abusive collection practices. It gives you the right to dispute a debt. It controls how and when a debt collector can contact you and what you can tell them. And it gives you the right to force debt collectors to stop harassing you. These topics are explored in more detail in the pages that follow.
What kinds of debts are covered under the FDCPA?
The FDCPA applies to debts that were earned primarily for personal, family, or home purposes. Most consumer debts – such as personal credit cards, student loans, and medical debts – are covered by the FDCPA.
What types of debts are NOT covered under the FDCPA?
Business debts are not covered.
Which debt collectors must comply with the FDCPA?
The FDCPA applies to any person or company that regularly charges the debts of another person or company. Employees of debt collection agencies and debt buyers must comply with the FDCPA. Law firms and lawyers also have to comply with the FDCPA if they conduct debt collection activities on a regular basis. Usually, most debt collectors fall under the FDCPA.
Which debt collectors do NOT have to comply with the FDCPA?
Creditors do not have to comply with the FDCPA if they are trying to collect their own debts. For example, an internal collection department of a credit card company or hospital would not fall under the FDCPA. Also, collectors who do not charge other people’s debts regularly do not have to comply with the FDCPA.
If you are behind on paying your bills, or if a creditor has a record that incorrectly demonstrates that you are behind on your payments, you may be contacted by a debt collector.
The Federal Trade Commission (FTC), the national consumer protection agency, is responsible for enforcing the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from engaging in abusive practices, Unfair or deceptive to collect a debt.
According to the FDCPA, a debt collector is someone who regularly collects debts that are owed to third parties. Included within this term are collection agencies, lawyers who regularly collect debts, and companies that buy back debts and then try to collect them.