Unfair Bill Collection Practices
The Fair Debt Collection Practices Section 808 prohibits the exercise of bill collection practices deemed as “unfair”. Below are some of the practices that are considered unfair and illegal.
Debt Cancellation Contracts
Debt Suspension Agreements
Debt suspension agreements are the breakthrough banking services that are substitute to credit insurance. Debt suspension agreements are covered by the Comptroller of the Currency, Administrator of National Banks (OCC). The Debt suspension agreements are the long term or contractual agreement that adjusts loan terms within which the bank agrees to suspend all or part of the obligation of the customer’s to repay an extension of credit coming from the bank upon the occurrence of a specified event.
Delinquent Debts and Debt Collection Improvement
Due to the marked increase of delinquent debts owed to the United States government by various individuals or organizations, the Congress passed the Debt Collection Improvement Act of 1996 (DCIA). This law centralized the collection of delinquent debts and provided new responsibilities to the U.S. Department of Treasury regarding the matter. Delinquent debts are the debts not paid on the due date or by the end of the “grace period” as postulated in the loan or repayment agreement. It may also mean to the debts not paid in the due date stated in the initial billing notice. Debt’s due date is often 30 days after the agency mailed the notice. Date of delinquency pertains to the date the agency mailed or delivered the billing notice.
Dealing with Debt Collection Lawsuits
Due to a series of unfortunate events you were not able to pay your bills, so the bill collection lawyer filed a suit against you. The question haunting you now is what to do. The first step is to take the matter seriously; address the issue immediately. Do not ignore it like the collection letter or calls by collection agencies. The possible consequences of lawsuits are catastrophic and messy. Thus, the debtors being sued should swiftly resolve the matter.
Credit Check Collection Agency
Do you think that being an irresponsible debtor has no consequence? Well think again. There is such a thing credit report that ascertain the credit worthiness of a particular consumer. Such services are provided by a special collection agency called credit check collection agencies. The main purpose of these organizations is to attest whether a consumer qualifies for a loan, credit, based on whether he or she has repaid past dues and loans. These credit score or credit history is then examined by banks or lending companies to estimate how risky it is for them to trust you with money.
Types of Bill Collection Agencies
Bankruptcy Demystified
International Debt Collection
Debt Collection takes on greater heights! International Debt Collection is similar to normal debt collection except that the creditors and debtors belong to different countries. This type of debt collection practice is relatively more difficult than the typical one. Every country has its fair share of laws and regulations governing the collection of debt. To be able to successfully collect the money owed, the debt collectors should be well-versed with a variety of foreign languages and the legal systems around the world. This is one of the underlying reasons why there are limited collection agencies that engage in this enterprise.
Collection Debt Validation Letter
The request for validation of debt is formally made through the debt validation letter that the consumer will write. The letter must explicitly state the dispute, the queries and the demands you have against the collection agency. In writing this letter, take note of the collection agency’s account number, creditor account number, creditor’s name, etc. Attached too the collection notice you received from the collection agency and send the letter through registered mail. This sample validation letter is based on the letter available online.