Debt Collection - Tips On Debt Collection Strategies

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Debt Collection - Tips On Debt Collection Strategies




Suing your creditors and collection agencies is not a hard thing to do if you have a base for your argument. I know what most people think, and that is "I owe them money, so how can I sue". The creditors are governed by the fair credit reporting act (FCRA), and the collection agencies are governed by the fair debt collection practices act (FDCPA). These acts were put in place to make these creditors and collection agencies accountable. What can one sue for you ask. Well here is a list of things you can sue for. Remember, it doesn't matter that you owe them money, they still have to follow the rules to collect it.

I'm not sure whether this last point is against the rules (this site is only based on my personal experience) but beware of Debt Collection Software agents that try to get you to stop/reduce priority debt payments (mortgage, rent, food, tax, fines) to be able to pay them some money. Some will try because they don't really care what trouble you get into.

Many creditors will charge off your account if your account reaches 180 days past due. After your account is charged off, you account will most likely be purchased by a junk debt buyer for pennies on the dollar. These companies are relentless and ruthless and will bend and break the rules that protect you in the Fair Credit and Collection Software Act. In today's tough economic times, many creditors and junk debt buyers will file a lawsuit in civil court for the debt. You must take this action seriously and consult the advise of an attorney.

Do not be tempted. Usually, you will be tempted to borrow the student loan to the maximum amount. It is known as loan trap. You will buy the maximum amount of money than you can afford to repay. When the repayment period begins, you will feel the debt burden.

If you plan to rent a house, the deposit will most likely be higher. In addition, you may be forced to live in a less prominent neighborhood than you wished.

If your bills are long past due and collection agencies are now involved, you need to investigate the possibility of payment plans. If you are willing to stay in communication with the collection agencies, they will be more than willing to work with you. If you stay away from them, your debt will get worse, and they may become unwilling to work with you after a while. It is sometimes possible to reduce the amount you owe up to one half by working closely with the agency. Settling the account, stopping late fees, and halting interest are definitely positive things you are in store for if you are willing to work with the collection agencies.