If you’re behind on your credit card bills, it is most likely that your accounts have been turned down to the collection agencies. The credit card companies hire the collection agencies so that they could run behind you for the money and help them out with recuperating their money. If you can consolidate your debts through an online debt consolidation program and become current on your monthly obligations, you can easily eliminate the hassles of receiving harassing creditor calls. If you’re not much aware of the debt collection process, here’s help for you. Read on to know about some frequently asked questions on debt collection and help yourself stay on the safer side.
What types of debts can be handed over to the collection agencies?
According to the FDCPA (Fair Debt Collection Practices Act), all kinds of family, household and personal financial debts are covered. This may also include auto loan payments, medical bill payments and your mortgage arrears.
Can a debt collector contact you anytime?
According to the FDCPA, the debt collectors cannot call a debtor during any time of the day. A debt collector must not contact a debtor during inconvenient times like before 8o’clock in the morning and after 9o’clock at night. And the collectors may even not call you when you’re at office if you make it an agreement.
Can the debt collector call anyone else for your debt?
There have been thousands of complaints with the FTC where the debt collectors have called various contacts in order to track the actual debtors. There are many debtors who do not want others to know about their financial condition. But as the debt collectors keep calling their friends and family members, this becomes a public matter. However, after the FDCPA, there have been certain changes in this practice. Tell the debt collector in written that you would not like them calling up anyone else and ask about your obligations.
Can the debt collector collect money if you think you do not owe that debt?
With the rising popularity of identity theft, there are many identity thieves who can shop around with your card and you may not even know about it. If your debt collector calls you and asks you to pay your debt amount and you think that you do not owe it, you must first go for debt validation. Verify whether or not you owe that particular debt amount and the creditor has to prove that you owe that amount by sending you the details of the account. He may gain start contacting you if they prove to be right.
It is best if you could consolidate your debts through an online debt consolidation program and eliminate the hassles of attending the calls from the collection agencies. Manage your personal finances so that you can save enough money and trigger off your debts and lead a debt free life.