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A General Discussion About Debt Collectio

There are times in just about everyones life that define hard times. Losing a loved one, losing a job or a tragedy is just about inevitable. When times get hard, a lot of people get behind on their bills because they just do not have the means to cover the expenses. This is when a lot of people tend to put some bills on the back burner thinking they will pay them when the financial situation gets better. Before too long, they are receiving phone calls and letters to try to collect moneys owed for services or goods already rendered. Debt collection can mean a few very intimidating situations can occur.

Many of the debts that are often pushed to the back burner are credit card accounts, medical bills and other debts that occur in a persons everyday life. Car payments and mortgage payments are some of the most common payments that are harder to pay when times get rough and money gets tight, making them the most common debt collection.

First of all, the company will try to contact the person that owes the money by phone, letter and sometimes email. This is the beginning of a chain reaction that can quickly turn bad. Not only is the payee starting to stress, so is the company that is owed the payment or balance due.

If the person is contacted, the company or service provider will often try to work with the payee to try to get the balance paid off. Most of them will accept an electronic check, paper check or credit and debit cards. If the debtor and collector cannot come up with a solution or payment agreement, then there more drastic measures the collector can use.

Collection agencies specialize in getting the money the debtor owes. They will first send a letter with information about the debt collection and give the payee a chance to finally pay the bill. It is common practice for the agency to call on a regular basis to try and get resolution to the problem. However, there are laws that protect a person in a debt collection situation.

The agency cannot at inconvenient times, especially when a written or oral warning has been agreed upon. It is not legal for them to call before eight o clock in the morning or after nine o clock at night. If the agency has been told not to call you at work, they cannot do so.

A person owing a debt and is being contacted by a collection agency, it can be stopped but it is not as easy as just telling them to not to make contact. In order to get the phone calls to stop, it has to be done in writing and should be delivered by certified mail with a return receipt. The return receipt is to insure that the letter has been delivered and the agency is aware that the debtor wants no more contact with them.

When this happens, the agency or company that sold the goods or services will often contact an attorney. There are many lawyers that specialize in payment collection and know the legal steps to get the moneys owed.

Although debt collection is a hard core kind of business, there are certain rules they have to obey. As long as they follow these rules, they can contact you in any way possible to collect the debt. These rules are put in place to protect the consumer from overly aggressive collection agencies.

One of the rules they have to follow is that they cannot harass an individual. They cannot threaten any kind of violence or harm to the person owing the money. They can give names to credit reporting agencies but they are not allowed to publicly list or publish names of those that are delinquent in payments.

Other important rules that they must obey is that they cannot threaten any kind of legal action against the person owing the debt, nor can they claim they will have anyone arrested if they do not pay the debt.

If they are not legally allowed to do so, they cannot garnish wages or seize any property. Only those that are seeking a debt collection are permitted by law to take actions such as these can do so. Most of the time a court proceeding will determine who gets what in those kinds of debt collections.

To do a little more research, check out the Federal Trade Commissions website. It has a lot of useful information that can help protect a debtor from a debt collection situation.