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Statute Of Limitations Debt Collection Article
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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.
Statute Of Limitations Debt Collection Specific links
Statute Of Limitations 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 Collectors are allowed to contact you about time-barred debts. However, under the federal Fair Debt Collection Practices Act, they cannot sue you for a debt that's time-barred. The problem is that the statute of limitations varies from state to state. |
FTC Asset Acceptance Case Signals-Debt Collection Crackdown - BusinessWeek
 KVAL | FTC Asset Acceptance Case Signals-Debt Collection Crackdown BusinessWeek “Some debt collectors unfairly target consumers even when the statute of limitations has passed or when they don't have the proper documentation to prove the debt is owed.” Consumers Union said more reforms are needed, including increased oversight to ... Debt collection firm pays $2.5 million to settle FTC charges FTC Announces $2.5 Million Fine for Unfair Debt Collection Practices US regulators penalize debt collector for deception |
FTC Fines a Collector of Debt $2.5 Million - New York Times
 KOMO News | FTC Fines a Collector of Debt $2.5 Million New York Times Debt collectors have only a certain number of years to sue consumers. The statute of limitations varies by state, but typically ranges from two to 15 years, Mr. Dolan said, beginning when a consumer fails to make a payment. But borrowers often do not ... 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 US gov't to get US$2.5M to settle consumer deception charges with debt-buyer |
Robo-Signing is the Tip of the Iceberg for the Banks - Money Morning
Robo-Signing is the Tip of the Iceberg for the Banks Money Morning The only relief long-delinquent borrowers have is the statute of limitations imposed by most states on debt collection. Statutes of limitation, which are typically between two and 15 years, are by themselves no guarantee that debt collection agencies, ... |
Have old debts? Read up on your rights. - Washington Post
 InsideARM | Have old debts? Read up on your rights. Washington Post The federal government also is concerned that debt collectors are going after “time-barred debt.” Debt collectors have a limited number of years or a statute of limitations in which they can sue someone to collect. After the time runs out, unpaid debts ... FTC Continues Its Fight Against Abusive Debt Collectors How to Collect on Time-Barred Debt |