Welcome to Debt Collection Guide
Debt Collection Consumer Rights Article
. For a permanent link or to bookmark this article for further reading, click here.
Creditors and the Debt Collection Letter
You may think that the debt collection letter that’s sitting in your mailbox is nothing but pain mailed directly to you. However, you have to keep in mind that for every debt collection letter that is sent, the pain goes both ways – the creditor is desperate for payment for an overdue account and the debtor is scrambling for money to meet the due date of the payment. So, just as much as the debtor feels pressure, so does the creditor. After all, every delinquent account means that the company will not be getting back some money.
So, what exactly does a debt collection letter contain? The debt collection letter is sometimes referred to as a letter of demand. This letter notifies the debtor of the outstanding balances or unpaid amounts on his account. In certain cases, the letter may also inform the debtor that unless he is able to make the payments on time, court action may be used against him.
In order to help the creditor grasp the full details of the debt, the debt collection letter must come with all the documents that are related to the account. These include copies of the contracts, invoices of past payments, and other letters of agreements made between the debtor and creditor. This way, the debtor will have the documentation that proves that he is responsible for the debt.
The debt collection letter lets the debtor know that the creditor is serious about getting his money back. And in the event that the matter goes to court, the creditor can use the letter as proof that the company did attempt to contact the debtor in an effort to settle the account.
Now that the debt collection letter has reached your mailbox, what do you do next? The first step is always to respond to the letter. You have to let the creditor know that you are not running away from your responsibilities. If you ignore the letter, you may put yourself in more trouble.
Before you respond, study the letter and the attached documents. If you need to dispute the debt, contact a lawyer who can help you. Once you and your lawyer have drafted a letter of dispute, mail it to the creditor immediately. If you agree that you do owe the debt, you should contact the creditor as well.
Once you have contacted your creditor and your responsibility for the debt has been duly established, you may begin to negotiate with the creditor. You can offer to pay several installments or you may offer to pay immediately but with a lesser amount. Since the creditor most likely wants to save on the costs of pursuing you for payment, he is bound to agree.
After you respond, the debt collection letter has done its job. It has opened a way for the creditor to reach you and inform you of your delinquencies. At the same time, the letter has made some options available to you, and you can select a payment scheme that is affordable to you.
Debt Collection Consumer Rights Specific links
Debt Collection Consumer Rights News
24HourPaydayLoan.com Unveils Lending Policy Article - Midland Daily News
 Deseret News | 24HourPaydayLoan.com Unveils Lending Policy Article Midland Daily News In addition to the Fair Debt Collection Practices Act, the article also covers regulations such as the Dodd-Frank Wall Street Reform Act, the Truth in Lending Act and state-specific regulations. Groups such as the Consumer Financial Protection Bureau ... GetCashToday.com Offers Up New Lending Policy Resource |
Keep Debt Collectors At Bay And Yourself Out Of The Slammer - Business Insider
 Business Insider | Keep Debt Collectors At Bay And Yourself Out Of The Slammer Business Insider Here are a couple tips for dealing with those dreaded debt collectors: Know your rights. As consumers, we are protected under the Fair Debt Collection Practices Act against harassment from debt collectors. There are certain things they aren't supposed ... |
Know your rights when dealing with a debt collector - Journal Inquirer
 The Consumerist (blog) | Know your rights when dealing with a debt collector Journal Inquirer Complaints about debt collectors were the second highest number of consumer complaints to the Federal Trade Commission last year. And a debt collector's unjustified efforts were the topic of my Leave it to Levy column two Fridays ago. So your rights ... Debt Collectors Settle With The FTC, Say They Won't Pose As Ed McMahon Anymore |
Hollywood Video rises from grave to pursue late fees: Plain Dealing - Plain Dealer (blog)
 Plain Dealer (blog) | Hollywood Video rises from grave to pursue late fees: Plain Dealing Plain Dealer (blog) This year, the trustee started fresh and hired three new debt collectors, ARM Solutions, Universal Fidelity LP and West Bay Acquisitions. Still, consumers from Los Angeles to Boston are complaining that, years after the fact, they're being blindsided ... |
6 Ways To Keep Aggressive Debt Collectors At Bay - San Francisco Chronicle
6 Ways To Keep Aggressive Debt Collectors At Bay San Francisco Chronicle Know Your Rights Never, ever believe anything a debt collector tells you. Multiple collection agencies have been slammed by the FTC recently for deceiving consumers into believing that they owed money when they really didn't. Since debtors' rights vary ... |