Fair Debt Collection Practices

You have accumulated some debt for various reasons. It could be that you’ve lost your job, or your income was substantially reduced, or perhaps you or a family member is suffering from a medical illness. For whatever reason, your debt is mounting and you cannot seem to make all the payments on time, and some you just can’t pay at all. Contact a debt collection lawyer to help find out what you can do in this situation with concern to paying your debt.

First off, you should know that you are not alone. This situation is occurring all over the country in homes just like yours.

Although knowing others are experiencing this same problem may offer some comfort, you are probably wondering what debt collection agencies can do when attempting to collect on a debt owed. The Fair Debt Collection Practices Act is a wonderful resource for determining what is legal for the debt collectors to do when trying to get money from you. Listed below are some parts of the Act.

Fair Debt Collection Practices Act Covers:

• Personal Debts
• Family Debts
• Household Debts

For instance the act covers personal credit cards, a car loan, your mortgage, medical bills, and any other personal/family debts. It does not cover debts incurred as a business though. For that reason, if you have a business, you should be keeping your business and personal finances separate. Some more information about what debt collectors can and must do is available at Credit.com.

Debt collectors are permitted to:

• Call you between the hours of 8:00 am and 9:00 pm.
• Contact you at work until you request they not do so.

Debt collectors are required to:

• Tell you their name and the name of the collection company
• Send you a written letter regarding the debt to be collected
• Honor a written request not to be contacted again
• Contact your attorney, not you, if they know you have retained one
• Verify all disputed debts

What You Need to Do:

• Open and respond to correspondence sent to you by collection agencies. You usually only have 30 days with which to respond or dispute the accuracy of the debt.

• Keep all notes and copies of correspondence for each debt and/or collection agency.

• It is important to speak with an attorney who specializes in bankruptcy or financial law before making any hasty decisions. Whocanisue.com can help you find an experienced bankruptcy lawyer or debt collection attorney in your area to assist you with bankruptcy laws, how to file bankruptcy, and should you file, and what to expect in bankruptcy court as well as other debt reduction options.

Sometimes consumers are not aware that you can negotiate with the debt collection agencies to pay less than the amount they are trying to collect. If you use this method, and the debt collector agrees, make sure to get the agreement in writing as you may need it in the future if the debt resurfaces. If there is a dispute, hire a debt collection lawyer to make sure your debt is settled smoothly.

Better than dealing with debt collection agencies, is if you know your circumstances are not going well and that you are either going to miss a payment or not be able to pay the entire amount required, contact the credit issuer. You can sometimes work out modified payment options until you get back on your feet. This method will also help to preserve your credit rating. If you use this method, again, make sure you get the agreement in writing. Additionally, keep in contact with the credit issuer, especially if your situation deteriorates further.

Debt Collection Defense
Another option for consideration would be to contact an experienced debt collection attorney who specializes in debt and bankruptcy. The debt collection attorney can review your particular situation and advise the best course of action to consider. It may be debt consolidation, negotiating with creditors, or even bankruptcy. Since each situation is unique, the debt collection attorney would be best qualified to explain your options as well as determine which would be your best possible choice. As a proactive measure, you could hire a debt collection attorney even before debt collection agencies start contacting you.

whocanisue.com can help you find an experienced debt collection attorney in your area.