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Debt Relief
By: Graeme Notega
Any person that uses credit cards, owe money on a personal loan, or pays a home
mortgage is a "debtor." Taking loans and making payments has become a standard practice among homebuyers, people looking to purchase a car, or attending
college or university. When a person falls behind in repaying his or her creditors or has an error in their accounts, they may be contacted by a "debt collector." When this happens, generally most people tend to become very distraught and undergo a lot of anxiety and anguish. To alleviate this kind of anxiety, it is very helpful, empowering, and educational to know what your rights under the Fair Debt Collection Practices Act, which requires that debt collectors treat you fairly and prohibits certain methods of debt collection.
Under the Fair Debt Collection Practices Act, debts that are covered include
personal, family, and household debts. This includes money owed for the purchase
of an automobile, for medical care, or for charge accounts. Debt collectors are
people that regularly collect debts owed by other people and they can include
attorneys. Debt collectors frequently contacted people in person, or via
telephone, fax, or mail. Under the Act, a debt collector can only contact you
between regular hours from 8am-9pm. Any other times are strictly prohibited
unless the person gives permission to the debt collector to contact them. Also
debt collectors cannot contact you at work unless you give them permission. Debt
collectors can be prevented from contacting people if the person in reference,
writes a letter requesting that the collector stop contacting them. Once the
collector receives the letter, they may not contact the person again except to
say there will be no further contact or to notify the person that the debt
collector or the creditor intends to take some specific action. Writing a letter
of course, does not eliminate the debt. It only eliminates any harassment
incurred from creditors or debt collectors. A debt collector can also contact
the attorney of the person involved and also investigate the person's background
further, to obtain information such as the telephone number, the residence, and
place of employment of the person concerned. Debt collectors are allowed to
contact such third parties one time and are prohibited from further intrusions
upon the said person's privacy.
Within five days after the person is first contacted regarding their debt, the
collector must send the person a written notice telling them specifically how
much money they owe, the name of the creditor to whom they owe this money; as
well as what action to take if the person does not believe that they owe this
money. A debt collector is also by law, not able to contact the person again, if
within thirty days of receiving the written notice, the person writes a letter
stating that they do not owe the money. A debt collector can renew collection
activities if they are sent proof of the debt, such as a copy of a bill for the
amount owed.
About the Author:
Graeme Nortega is the owner of Survival Centre which tackles all debt issues.For
more information, go to: www.faxdebt.com. |
