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Understanding Debt Collection
from:The words ‘debt collection’ bring a lot of panic and anxiety to individuals who are in debt. It may be your student loans, your mortgage on your house or your car payments. No matter what the debt may be, debt collection is something that every debtor has to face. After all, your creditors and lenders need to get their money back.
So when you answer your door bell and you come face to face with the representative of a debt collection agency, don’t panic. Remember that debt collection is an activity that is regulated by the law. The law ensures that debt collection is just an act to pursue you to make payments; it will not impede on your rights. The Fair Debt Collection Practices Act of 1977 details the rights that you have when it comes to debt collection.
First of all, you may be wondering why a representative of a debt collection agency is at your door. If you owe a certain amount of debt to a company, you usually pay the debt according to the contract that you signed. However, if you miss payments or you refuse to stick to the payment plan, the company may turn the debt over to a collection agency. This can also happen if you continually ignore notices from your lender. To put it simply, debt collection happens when your creditor or lender feels that pursuing you for payments is already taking up too much of their resources.
Of course, the debt collector cannot simply pop up on your doorstep, demanding that you pay your debt. Typically, debt collection starts when a collector contacts you and notifies you of the status of your debt. The initial contact can happen through a lot of ways. It can be done through a letter, a fax, an email, or a typical phone call. In some cases, the debt collection process can start with a home visit from the collector. However, do not panic. The first visit is usually for the purpose of gathering information only. The debt collector simply wants you to know that he will be handling your payments.
Debt collection is a very transparent process. You will be given all the information you need. For instance, within five days of initial contact, the collector will send you a written document that will provide the necessary details regarding your debt. It will include the name of the creditor or the business from which you borrowed the money. Also included is the specific amount that you have yet to pay.
However, it is important to note that debt collection activities are not always 100% accurate. Sometimes, businesses fail to update your payment records and they may assume that you have missed some payments. If you believe that you have sufficiently settled your debt, you can just write a letter to the collector to explain yourself. You must show proof that you have settled the account, and until the collector can dispute your claim, all debt collection activities will stop.
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Debt Collection News
Have old debts? The collector might be too late. - Washington Post
Have old debts? The collector might be too late. Washington Post Asset Acceptance bought the rights to collect the past-due money in 1999. In a document it sent to Bond, the company said the date of delinquency for the debt was Aug. 9, 1996. That date was key to his case. Debt collectors have a limited number of ... |
Data theft leads to debt collector's license suspension - Minneapolis Star Tribune
Data theft leads to debt collector's license suspension Minneapolis Star Tribune Minnesota has suspended the debt collections license of an Illinois company that lost a laptop computer containing medical records of thousands of patients at Fairview and North Memorial hospitals last summer. Accretive Health Inc. is also being sued ... Commerce pulls license of collections firm in stolen-laptop case Minnesota AG sues business associate for loss of patient data stored on laptop |
Debt collection firm pays $2.5 million to settle FTC charges - msnbc.com
 Plain Dealer | Debt collection firm pays $2.5 million to settle FTC charges msnbc.com By Herb Weisbaum, The ConsumerMan One of the largest debt collection companies in the country agreed on Monday to change the way it does business and pay a $2.5 million civil fine to settle charges brought by the Federal Trade Commission. FTC Asset Acceptance Case Signals-Debt Collection Crackdown US regulators penalize debt collector for deception FTC Announces $2.5 Million Fine for Unfair Debt Collection Practices |
Misery Heaped on Scots Debtors by Law Firms Practicing Debt Collection, Says ... - EIN News (press release)
Misery Heaped on Scots Debtors by Law Firms Practicing Debt Collection, Says ... EIN News (press release) Scottish law firms who practice debt collection are routinely ignoring the Office of Fair Trading's Debt Collection Guidance, says Scottish Debt Advice Company, Trust Deed Scotland. GLASGOW, SCOTLAND, February 05, 2012 /24-7PressRelease/ -- According ... |
FTC settlement with debt collector is a message to all debt collectors - HeraldNet
 KOMO News | FTC settlement with debt collector is a message to all debt collectors HeraldNet The Fair Debt Collection Practices Act defines a debt collector as someone who regularly goes after money owed to other parties. Debt buyers pay pennies on the dollar for defaulted debt. I certainly don't question the right of firms to collect on debts ... FTC Fines a Collector of Debt $2.5 Million Asset Acceptance, a debt-buying agency, to pay $2.5 million in FTC settlement Debt Collector Reaches $2.5 Million Settlement With FTC Over Deceptive Practices |