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Archive for the ‘Debt’ Category

The best way for accomplishing the credit card debt through an agreement is called as Debt Settlement. If the debtors have the credit card debts that they cannot solve, there is a one popular option called Bankruptcy. But Bankruptcy involves some problems for both the creditors and the debtors. Creditors are supposed to forgive the debts of the debtors if the debtors apply for Bankruptcy. Debtors can also have some problems like bad mark in their credit report so they cannot have anymore debts from anybody. So, debtors are supposed to choose the best way for avoiding these problems while selecting the option to overcome debts.
There is a wonderful way for overcoming the debts between the debtors and the creditors in a smooth way through one agreement is called as Debt Settlement. It involves a third party to solve the debts between debtors and creditors in a legal way. Debt Settlement provides a lot of benefits are as follows. Without Bankruptcy, it helps to overcome the credit card debt. It needs the payment from the debtors only if they get a good result. It does not need any advance. It will not require any credit checks or any homeownership requirements.
First of all, if the debtors want a debt settlement, they are supposed to describe about their debt details to the debt settlement provider. Then, the provider will provide a proper way of debt settlement and offers of the creditors according to the debt. After the debtor accepts the settlement package and the creditors accept the offers, the provider will contact with the creditors on behalf of the debtors for preparing a debt settlement to overcome the debts.

If you are knee deep in debt and are being constantly harassed by debt collectors, then it is time that you should consider various solutions for debt reduction. However, before you think of debt reduction it is advisable that you should make yourself aware of debt laws that are actually meant to protect you from the harassing calls of creditors. Most consumers like you are not aware of laws that are meant to protect against troublesome collection calls

The nation’s consumer protection agency, Federal Trade Commission (FTC), enforces an act that is called the Fair Debt Collection Practices Act. This law prohibits debt collectors from treating any consumer badly or indulging in any sort of misbehavior.

There are certain things that the collector can not do or say as per the law. Some of these are as follows.

1. Use obscene language: The collector is forbidden by the Fair Debt Collection Practices Act to use obscene, abusive or profane language. The use of such language is considered as harassment and is punishable by law.

2. Ask for more: You can not be asked for more than what you owe by the collector. If he misrepresents the amount that you owe, then he is liable for punishment.

3. Add on extra fees: Your creditor is not supposed to add on any extra fees that is not a part of your original loan agreement. Asking you to pay expenses, fees or interest that are not meant to be paid by you is also punishable by law.

4. Calling at inconvenient times: If your collector calls you before 8.00 pm or after 9.00 pm, then that is considered to be a form of harassment. The collector should also not call you at work if you have a problem with that and call you at home or at late working hours. Calling you repeatedly or continuously is also not what your collector is supposed to do.

5. Inform a third party about your debt: Your debt collectors are not to inform any third party about the debt that you owe, as per law. They can only contact a person to take your address or phone number but not divulge the details of your debt. However, they can contact your attorney, the creditor and the creditor’s attorney.

These are a few things that the collector can not do or say to you. An awareness of this law protects you from troublesome debt collectors. Knowledge on this law can save you unnecessary harassment.

It has been observed quite often that you are asked to pay for a debt that you don’t owe. Under such circumstances, you can validate your debt. Debt validation is the process in which you can challenge the collection agency’s claim that you owe money. Debt validation proves whether you legally owe money or not.

However, you should know your rights related to debt validation. When the creditor or the collection agency sends you a letter asking you to pay up for the debt, you can make use of debt validation to prove that you don’t owe money.

How does debt validation work?

You can get your debt validated in the following manner –

• You can request the collection agency to validate the debts. There are many sample letters available online that can give you an idea as to how you should be dealing with your collection agency and the format of the letter that you should follow.
• Once you receive the letter from the collection agency make sure that the collection agency you are dealing with is authentic and licensed. It is also important to find out if you are residing in a state that requires the collection agency to be licensed.
• In case you find out that the collection agency urging you to pay up debt isn’t licensed as per state laws, convey the same to the collection agency and inform them that they may have to face legal prosecution for violating state laws.
• As per norms laid down by the FCRA, collection agencies are not allowed to send any negative information to the CRAs or the credit reporting agencies unless they are successful in validating your debts.

To get more information on this, contact with a reputed Debt Collection law firm. and hope you that will help you a lot.

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