Debt Relief – Slowing Down The Collection Process
Consumers are federally protected in their dealings with collection agencies who must abide by these rules or face possible fines or sanctions. If you want to take control when facing debt collection efforts, you need to know your rights related to such actions. Here’s some rules to consider.
Termination of Contact
If a debt collector contacts you in regard to an an account sent to collection, you can tell them to stop all communications with you and to go through your lawyer instead who must respond to their efforts. By law, the agency must immediately stop contacting you, except to inform you that either all collection efforts have been canceled or to inform you that you are being sued. Another option you have is to tell them that you want to negotiate with the original creditor instead, and then revisit that avenue.
Intent to Follow Through
Collection agencies cannot threaten you with actions they do not intend to follow through on. Such threats are considered intimidating and coercive and are prohibited by law. So if you’ve been informed you will sued for nonpayment, they better actually do it or they face penalties. If you’ve been intimidated in this way, contact either the Federal Trade Commission or your state Attorney General to file a complaint.
Proof of Debt
Upon request, collection agencies must provide written proof of your outstanding debt, including exactly how much and to whom. The time involved to produce a statement of your account can give you an opportunity to either come up with the necessary fund or reach a settlement. The collection agency has five day in which to provide you proof of liability and their authorization to collection on your debt.
Once your debt has been officially verified, you can still dispute its accuracy by sending the collection agency documentation of the error. You must follow up within 30 days of its receipt, using certified mail. Otherwise, you indicate you accept their findings and collection activities will resume.
There is one more way to delay actions within the 30 days following receipt of the notice of validation. You can request further proof of a judgment against you, as well as detailed address and contact information on the original creditor. Your attorney can advise you on what’s right for you.
While the facts in your case are in dispute, the collection agency must postpone all debt collection activities until the information requested is received. Contact the proper authorities to complain about any violations. Don’t assume that just because the facts back you up that everything will resolve in your favor. Inaction on your part can result in a judgment against you.
Make Them Play by The Rules
Federal laws outline appropriate actions that can be taken by collection agencies. If you feel you have been mistreated by a collection agency, you must report them to the proper authorities. Doing so will ensure they are held accountable for unscrupulous or dishonest activities. Your actions could circumvent the process long enough for you reach a settlement or come up with the necessary funds. Don’t forget to get any agreements in writing, especially regarding receipt of payment, dissolution of debt, and ask that any related negative items on your credit report be removed.
If you find yourself in a situation where you need to settle a debt with a collection agency, it’s important to know the rules. Understanding the process can save you a lot of hassle and possibly even save some money and help repair your credit.
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