Defaulted? Brace up to Deal with Collection Harassment at Ease

Brace up to Deal with Collection Harassment

Have you defaulted on your student loan? Well, if yes then, brace up to expect a call from the debt collectors anytime soon. Yes, the department of Education of the Federal Government has duly hired a number of collection agencies endowing them with the task of loan recovery. Intimidating it might get, but prevention won’t save you from the plight. Therefore, hiding from debt collectors is certainly, not a solution that would work magic for you. Rather, handling the issue from the front might help you break the jinx.

Now, before you take to facing them with a headstrong attitude, here is a look at some pointers that you must remember to ensure a smooth deal with the debt collectors.

• Know your rights –

Being a defaulter is never equal to being a criminal. Therefore, if a debt collector poses such behavior towards you then, always know that the Fair Debt Collection Practices Act is just by your side. The act has been exclusively designed to protect the consumers from debt collection harassment and it poses certain restrictions on the debt collector like calling prior to 8 a.m. and 9 p.m., using abusive means, threatening, divulging information, representing them, and so on.

• Always be Open to Talks

Avoiding a call or notice from the debt collector is equal to inviting risks on your own, as it offers them a platform for filing a lawsuit against you. Always pick up their calls, and if required schedule a meeting with the collector and address the notice stating the bill amount and the lender’s name. In case, you find yourself to be free of such debts then, send a written notice to the collector informing about the same within one month of receiving the notice.

• Document the Meeting

While you are in a meeting with the debt collector, never forget to take notes of everything they say. If possible then, record the conversation with due permission of the collector. Also, remember to keep a note of the time and date of the call and the name of the representative.

• Negotiate with Debt

In case, you find yourself owing the debt then, contact your lender immediately and explain your financial condition to them alongside stating the reason for not being able to pay off the debt. Have an open talk with the lender and request a payment plan for him or if possible, to forgive some amount from the debt though, the latter option might get difficult.

• Get a Written Notice

Once, you have convinced your lender or the debt collector with an alternative repayment plan favoring your financial condition, always ensure getting the notice in writing. Either get your lender to send you a notice on their letterhead or get it written to be duly signed by them. If you start paying a settlement, prior to having a written notice then, remember the bargaining power is completely lost., as the debt collectors might anytime get back to you stating that there wasn’t ever any settling between you two.

Defaulted student loans are certainly, harassing, but following the steps well ensures better handling with the debt collectors.

Brace up to Deal with Collection Harassment

A. Brief overview of the topic:

Collection harassment is a common problem faced by consumers who owe debts to creditors. Collection harassment refers to the abusive or aggressive behaviour of debt collectors who use various tactics to collect payments from consumers. This can include repeated phone calls, threatening language, and other tactics that can cause significant emotional distress for consumers.

B. Explanation of why the topic is relevant:

Collection harassment can have a serious impact on consumers who are already struggling with debt. It can cause emotional stress, damage credit scores, and even lead to legal consequences for debt collectors who violate consumer protection laws. It is important for consumers to be aware of their rights and to know how to deal with collection harassment to protect themselves from these negative effects. This blog post will provide information on how to understand collection harassment, its consequences, and how to deal with it effectively. By learning how to manage collection harassment, consumers can protect their financial and emotional well-being and take control of their debt.

II. Understanding Collection Harassment

A. Definition of collection harassment:

Collection harassment is a practice by which debt collectors use abusive, threatening, or harassing tactics to collect unpaid debts from consumers. This can include repeated phone calls, text messages, or letters, using vulgar or abusive language, and making false or misleading statements. Collection harassment can also include making threats to take legal action against the consumer, garnish their wages, or seize their property.

B. Types of collection harassment:

There are several types of collection harassment that debt collectors may use. These can include:

1. Verbal harassment: This involves using abusive, vulgar, or threatening language when communicating with the consumer.
2. Multiple calls: Debt collectors may repeatedly call a consumer, sometimes even at inconvenient times of the day or night.
3. False statements: Debt collectors may make false statements, such as threatening legal action or implying that the consumer could be arrested or have their property seized.
4. Calling family, friends or employer: Debt collectors may contact a consumer’s family, friends, or employer and disclose personal information about the consumer’s debt.
5. Misrepresentation: This includes misrepresenting themselves as government officials, lawyers or law enforcement.

C. Overview of the laws protecting consumers from collection harassment:

There are several laws in place to protect consumers from collection harassment. The Fair Debt Collection Practices Act (FDCPA) is a federal law that outlines the rules that debt collectors must follow when attempting to collect a debt. This law prohibits debt collectors from using abusive, deceptive, or unfair practices when collecting a debt. Other state and federal laws also provide protection against collection harassment. It is important for consumers to understand their rights under these laws and to take action if they believe their rights have been violated.

III. Consequences of Collection Harassment:

A. Emotional impact on consumers: Collection harassment can have a significant emotional impact on consumers. Being constantly hounded by debt collectors can be incredibly stressful, causing feelings of anxiety, depression, and even fear. This can affect a person’s mental health, leading to sleep disturbances, loss of appetite, and difficulty concentrating at work or school. In severe cases, it can lead to more serious mental health issues, such as post-traumatic stress disorder (PTSD).

B. Negative impact on credit score: Collection harassment can also negatively impact a person’s credit score. If a debt goes unpaid for an extended period, it can be reported to credit bureaus and remain on a person’s credit report for up to seven years. This can damage a person’s credit score, making it harder to obtain loans, credit cards, or even housing.

C. Legal consequences for debt collectors: Debt collectors who engage in collection harassment can face legal consequences. The Fair Debt Collection Practices Act (FDCPA) sets strict guidelines for how debt collectors can interact with consumers. If a debt collector violates any of these guidelines, such as calling at inappropriate times, using abusive language, or threatening legal action they do not intend to take, the consumer can take legal action against the collector. The consumer can sue for damages, which can include compensation for emotional distress, lost wages, and attorney fees. Additionally, the debt collector may face fines or penalties from regulatory agencies.