Understanding Your Rights As a Debtor
Something most people with debts do not want to do is face facts and take control of their situation. Some credit card holders have ran up the balances on their cards without a clue how the massive debt would be paid back.
Mobile phone bills go unpaid until finally service is cut off, and consumer card debts have some in a serious mountain of unpaid bills. Worse yet, imagine incarcerated individuals with nothing to do with their time to earn money. This sends debt collectors to hound their loved ones to collect the debts they failed to pay and cannot now because of their situation. Sure, they committed a crime to get them there, and their loved ones suffer along with them.
Unfortunate circumstances can occur that lead to debt, such as unemployment, disasters, illness, or accidents. Lenders do have a right to pursue collection of the debt, but you have rights also and there are laws to protect you.
Take Action When It Comes to Debts
Whether you like it or not, you need to get a handle on the situation. Pretending it isn’t happening won’t make it go away. Call your creditors and explain your situation, and the sooner the better. Some of the people you owe may be willing to set up smaller repayments.
Creditors are more sympathetic to customers who are willing to contact them to explain their situation, and working with the debtor in this way is usually cheaper than trying to collect in some other way.
Debts and Debt Collections Techniques
Many years ago, debt collectors were likely to show up at your door in an effort to collect. Most of today’s recovery experts spend their time in a call centre using the telephone to contact debtors. The collectors may be working to retrieve debts for the company you ran up the account with, or your debt may be sold to another owner for collection.
Debt collector harassment is annoying, but don’t let them intimidate you. They are trained to make you feel threatened, but these collectors do not have power of you the way they want you to think; they have no law enforcement authority.
Your Rights Regarding Debts
Even though you have bad debts, you also still have rights. There are laws that control what debt collectors can and cannot do; they cannot excessively harass, threaten, or bully you.
Collectors are supposed to contact you only during certain hours of the day. There are strict rules governing face to face encounters as well. Keep a log of the dates and times you are contacted along with any other specifics. This will come in handy if you end up having to file a complaint, which can be done by contacting a consumer protection agency such as the Australian Competition and Consumer Commission (ACCC).
Check your bill records if collectors are calling you. Ask for a detailed statement of what they say you owe. If the debt involves a loan, ask for a copy of the paperwork.
A collector must always identify himself and state the reason he is contacting you. He should be prepared to provide you with account information, and should offer a repayment or settlement plan.
Figure up what you must spend to get by, such as food, shelter, auto, utilities, etc. Set up an appointment with a non-profit help debt counsellor before making any promises or commitments to a collector.
When you take responsibility and start working toward trying to pay off who you owe, even if it involves payment negotiations, you are working toward ending the annoying collection attempts and getting on with your life.
Related posts:
- Debt Refinancing
- The Domino Plan For Paying Off Debts
- Fixed Rate Second Mortgage
- Home Loan Debt Consolidation
- First Home Buyers in Danger of ‘Mortgage Stress’
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