Debt collection is rising because more people are in debt than ever before. Unfortunately, all of us have had to deal with debt collectors at some point in our lives. The fact that they are constrained by regulations and norms when it comes to collecting debts may come as a shock to you.
Fair Collection Of Debt
The majority of people are unaware of their legal rights when it comes to debt collectors, which is a major source of frustration. In order to protect consumers from fraudulent and unjust debt collection practices, the Federal Trade Commission has made consumer education a priority. As a result of the Fair Debt Collection Practices Act (FDCPA) and the Federal Trade Commission’s rules, debt collectors are prohibited from contacting you or collecting any of your debts in a number of ways and at various times.
The most common methods in which debt collectors violate the law are through deception and false assertions. Debt collectors have a reputation for lying and creating false claims in order to frighten you into paying back the money owed to the company. Older folks, in particular, are frequently duped into paying bills they cannot afford because they are fearful of being taken advantage of.
Collection agencies may also harass their clients by calling them often, even at odd hours, and even speaking abusively to them or their loved ones. The Fair Debt Collection Practices Act or inkasso regler (debt collection rules) prohibits all of these practices. The use of electronic means of communication such as email, social media, or the public disclosure of personal information is likewise prohibited.
Debt collectors break these restrictions on a daily basis, despite the fact that these inkassoregler (debt collection rules) are in place. A violation of reasonable debt collection practices should be reported to the FTC as soon as possible.
Do Not Collect
Debt collectors can be a nuisance, but there are several methods to put an end to it. To begin with, you have the option of negotiating and repaying your obligations directly with your lender. Although your account has been turned over to a debt collection agency, you still have the option of settling your obligations directly with that agency.
You can also request that the collection activities be halted by contacting your creditor to set up a debt resolution plan. Once you have reached an agreement with your creditor, they are legally obligated to stop communicating with the debt collector.
Filing for bankruptcy will also stop creditors from contacting you. All collection activities must cease immediately after you file for bankruptcy. If a collector tries to get in touch with them again, they could face harsh consequences. The debt collector’s correspondence will also be handled by your bankruptcy lawyer. To deal with creditors, bankruptcy is an excellent alternative if you can’t afford to repay your debts, can’t bargain directly with creditors, or have been served with notice of a lawsuit related to collections.