Major Advantages of Debt Settlement Like Paying Less Than 50%
The recession has hit everyone pretty hard. It’s difficult to keep up with current bills and once you get behind it can be almost impossible to catch up again. Are you buried under a mountain of credit card debt? Have credit card collections agencies called night and day? Understanding credit card debt collection laws may help you sleep better at night.
There are guidelines that credit card collection agencies must adhere to; these are listed in the Fair Debt Collection Practices Act (FDCPA). There are strict dos and don’ts for individuals or business trying to collect on any debt and credit card debt falling into that category.
Collection agencies or their representatives must not do these things:
• call before 8 am or after 9 pm local time
• call you at work after you have informed them that your employer doesn’t allow such telephone calls during business hours
• contact you directly if you have retained an attorney to deal with the debt
• cannot misrepresent themselves; for example, a bill collector cannot claim to be an attorney
• put your name on a “bad debt” list
• use profane language during the course of their communications with you
• threaten to have you arrested
• give false information on your consumer credit report nor can they threaten or hint they might do so
• reveal your debt to a third party other than your spouse or your attorney
The FDCPA doesn’t stop there. It requires credit card debt collection agencies to do certain things as well. They must do these things:
• identify themselves in every telephone call or written communication
• identify the original creditor and provide their address upon your written request
• must provide proof that you owe the debt; you must submit a written request for verification
• must tell you that you have the right to dispute the debt
• can only file a lawsuit against you in the place you are located presently or in the place where the debt originated
There are many cases of abuse from credit card collectors. In El Paso, Texas, one debt collector told a woman she was being sued when that wasn’t the case. According to a report filed by KFOX 14, the woman was left a message that stated “a phone call regarding a pending lawsuit that's scheduled to be brought against you. Ignoring this message is not going to help. We're going to call your neighbors to get information regarding your family or members of your church.”
This message was wrong in at least two ways. The debt collector told her there was a pending lawsuit when one had not been filed. Also, he or she is breaking the law if they disclose your debt to a third party, in this case neighbors or church members.
Learn as much as you can about your rights as a consumer when it comes to credit card debt. It can save you from many a sleepless night.
