A study done by Capital One Wise survey stated that 73% of Americans stressed over debt. With the pandemic still a problem, many people have found themselves out of work and unable to pay the bills, especially credit card bills. The current situation hasn’t stopped the creditors from harassing and hounding for money, though.
People who owed debt feel at a loss and confused about the situation. This article will give tips and information on debtors’ rights.
FDCPA Guidelines
First, the FDCPA has guideline debt collectors have to follow:
- 1. Cannot make phone calls to a home before the time of 8 a.m. or after 9 pm.
- 2. If informed either verbally or written not to call at a place of work, they must stop calling.
- 3.They may not contact others about a debt.
- 4.Cannot use deceptive practices such as lying about the money owed.
- 5. Pretend to be part of a law enforcement agency.
- Give false information saying that you will be arrested if the amount owed is not paid.
- 7.Unless the law permits them, they cannot seize or sell a property.
- 8. Provide inaccurate information to others, including to credit reporting agencies.
Rights
When a person has an attorney representing them, debt agencies have to go through the attorney about the debt. This works only when the debt collector has been notified about the attorney. Advise them to contact your lawyer on the matter.
Debt collectors have to stop calling when sent a letter for them to cease calling. FDCPA says that people who have debt can request these agencies to stop calling. The law also states a collection agency cannot contact that person unless they sue.
Do not offer a debt collection agency any information, especially bank account number, social security number, or property information.
Never own up to a debt to a collection agency.
More FDCPA Guidelines
According to FDCPA debt collector must provide the following information:
- 1. How much is the debt.
- 2. The name of the person owed the debt.
- 3. A statement about if the debt is not disputed will assume validity.
- 4. If the debt is disputed the debt collector has to provide confirmation.
- 4. If the debt is disputed the debt collector has to provide confirmation.
Ways To Settle Debt
Debt resolution or debt settlement is a way of lowering the debt someone owes. A debt resolution company will communicate with creditors on a person’s behalf to negotiate so that an individual can pay a percentage of the total debt. A person trying to decide if they need this type of help would consider certain criteria:
Can’t pay more than the minimum amount.
Not able to make credit card payments on time.
Having to depend on credit cards for daily needs.
Credit cards maxed out to the fullest amount.
Individuals finding themselves having to answer yes to some of these questions may want to consider debt resolution.
Although debt collection agencies can intimidate people who have run into debts, these individuals still have rights and don’t have to buckle down to debt collectors. Debt collectors will cross the line to collect a debt, but knowing about what can be done will save a person from stress.
Debt Pardon
One of the best tools for students and other individuals to get from under debt is debt forgiveness. Unfortunately, this type of program has its cons and not as easy to come by and students must have federal loans to qualify. Creditors may not agree to forgive the debt.
Debt forgiveness is a creditor or creditors agreeing to eliminate some or all of the debt owed. Debt forgiveness can work with several creditors but only if the person owes at least 10,000.
This type of program includes avoiding having to go the bankruptcy route. A lower amount to pay back for the debt and paying off the debt quicker. One of the best ways to get a debt program for forgiveness for students is through the Public Service Loan Forgiveness program. If qualified, the program allows forgiveness for full-time workers who have made monthly payments. To qualify, a person would have to have made 120 consecutive monthly payments already.
Other types of forgiveness programs include teachers’ loan forgiveness, Public service loan forgiveness, income-driven repayment comes military service, AmeriCorps.
Additional Tips
If the statute of limitation for a credit card has expired that person can avoid paying the debt. The statute of limitation depends on the state he or she lives in.
Even if debt collectors threaten you with legal procedures, don’t throw in the towel just yet. They may try to bluff. Many debt collectors count on people not knowing the facts. If a debt collector does threaten to sue, don’t give in to fright. Debt collectors who use this kind of tactic are breaking the law set under the FDCPA law. Most debt collectors purchase the debt for a fraction of the amount. Sometimes a lawsuit may occur, but more often the debt collector will give up pursuing the debt.
Get the debt validated. The burden of proof of who the debt belongs to is on the debt collecting agency and buys time to find out if the debt is accurate. Disputing a debt takes a long time and alerts credit bureaus of inaccuracies, which obligates them to remove the negative report.