According to ancient Voodoo belief, corpses sometimes rise from the dead to haunt the living especially those who owes or have done something awful to them. These nightmarish creatures are known as zombies. There are zombies among us; these are the zombie debts that seem to rise from the dead. Read the rest of this entry »
Previously:
Now:
The situation that happened to our imaginary customer/debtor is not something new. As a matter of fact, the debt-buying industry is flourishing because of the hundreds and even thousands of dollars they are earning from buying zombie debts.
Collection agencies and firms are at dilemma. They want the consumers to pay their debt but don’t want to appear threatening or too demanding. The communications (phone calls, letters) they made with the debtor are of grave importance. It must show unwavering firmness, but also compassion and understanding. In this article, we will provide you will sample letters you can use in communicating with your customers or debtors.
The collection agency or firm may opt to edit the letters to fit into the needs of each individual customer. It should be remembered that in letters should be brief and to the point, as well as cordial and respectful.
Here is another set of bill collection letters you can utilize. You may change and edit the letters for fit your needs. These letters may help creditors and collection agencies to communicate effectively with their customers. It also provide for a foundation that could be the basis for you future exchanges.
Creditors should also be familiar with the Fair Debt Collection Practices Act (FDCPA). This law identifies the rights of consumers in relation with the debt collectors, the guidelines on how the debt collectors should conduct business, the penalties and punishments if the debt collectors violated any of the rights of the consumers.
Debt consolidation is available in various forms such that of: home equity loans, zero-percent credit card and debt consolidation loan. The creditor should be well informed of the mechanism of these things. He/She should examine how it works; identify the pros and cons; and see whether it fits the bill that the debtor needs to accomplish.
Do not be deceived by the picture of debt consolidation as an easy escape to debt pressure. Debt consolidation is a very risky and complicated manner of handling your credit concerns. Consolidating your debt means combining all of them into one. To do this you have to make one loan to pay off all the others. Debt consolidation usually entails lower interest rates, secured interest rates and the convenience of paying only to one creditor. Nonetheless, debtors should be very vigilant or else debt consolidating may sink them further into the quicksand of debts.
In the earlier articles, we have been discussing bill collection in the consumers’ point of view. This article will try to feature bill collection activities in the light of the creditors.
It has been said that regardless of size and stature, every firm has its own set of collection problems. The depth of such problems depends on factors such that of client profile, firm’s size, practice mix, management style and the economic setting. In the case of the creditor it is important to identify when and how to hire debt/ bill collection agencies. Bill collection agencies are essential because it enables the creditors to reclaim their debts in instances that it may seemed impossible to do so.
Each state of the country has there own state law regulations on how to conduct bill collection. These laws can be divided into two categories: the laws that require collecting agencies to be licensed, registered or bonded in order to collect from consumers in that specific state; and the law that protects the interest of consumers from abusive acts, unfair practices by debt collectors, collection agencies or creditors.
If you think that bill collectors are engaged in abusive behaviors, harassment and illegal activities, it would be better to act immediately. Here are some of the things you can do during such instances.
Stop the threats, annoying phone calls at inappropriate hours of the day, and abusive phone calls to your neighbors and employer. Under the Fair Debt Collection Practices Act, the consumers possess the right to tell the collection agency to stop contacting them. A letter may be sent to the collection agency to say to them that you want them to cease all communication with you. The collection agency employees are then prohibited to contact you, well except maybe to inform you that the Read the rest of this entry »
It isn’t surprising to hear reports of harassment performed by bill/debt collectors in the news. Such acts though considered illegal under the Fair Debt Collection Practices Act (FDCPA) is still very much prevalent. In this article, we will discuss the instances when you can say that you are being harassed by debt collectors or collection agencies.
The debt collectors can call you and ask you to pay your debts on due time. But, they are forbidden by the law to harass, threaten or abuse you. Below are some actions that are considered as harassments: