Receive info about bankruptcy: 
Posted by Bankruptcy Help in 
Debt is not confined to poor and middle class but any one can find them in financial debt. There are many reasons that can lead to debt such as death of a family member, divorce, sudden job loss and an unprofitable business venture.
Credit score is being the most important for an American, and this has been the most effective weapon for the collection agencies. Spoiling your credit report with account in collection will lower your credit score. Individuals with low credit score will find hard to find finance as the lender sees the risk of lending to those individual is higher.
With economic crisis around the world and its impacts in our lives, debt is piling up. Under such circumstances debt collection agencies have to tighter their rules to collect the debt. Due to this we have been seeing rise in the abuse of Fair debt collection practice Act. This act protects every consumer form unlawful debt collection tactics. Here are some of the tactics that collection agencies use for debt collection.
Pre approved offer for credit: it looks like a new credit offer with pre approved streaked across the front page but as you continue to read you may realize that this is not serious credit offer in turn an offer to put your old debt on any company new credit card. This is one of the collection agencies tactics for debt collection. Unfortunately if you had accepted that offer and signed on it you unintentionally showed the proof of having debt and almost have to pay three times more than what you owe before. It is better to consult an attorney, specialized in consumer law if you are not sure of the details of the agreement.
Two for one: it is the case where two collection agencies are trying to collect the same debt at the same time. It is illegal to collect in such a way, but they are doing so because of the fact you don’t know the law. If you received more than one letter from collection agencies with different name for the same debt, then you dispute them by asking in writing simultaneously to all the collection agencies that send you a letter to show the proof that they own and can collect the debt on the account. But remember not to mention name of the other collection agencies from which you receive the letter to prevent clouding.
The posers: you may receive a letter from which looks like a reputable law firm offering you help in resolving your debt. It doesn’t look like a letter from collection agencies so that you call and fix an appointment with that company. They pretend to study your case and paperwork and in the end they say, paying the debt is the only way for you. If they say so kindly leave, chances are that they are linked to debt collection agencies.
The fair credit reporting act, fair debt collection act were enacted by the US government to offer consumer relief from debt in dreadful times. Every tactic which was listed above was unethical and illegal but is still in use because of uninformed consumers and they collect millions of dollars. Above tactics can keep you credit score low for years.
No related posts.
Nightmare for any borrower is having their debt is with the collection agencies because they use many illegal tactics with respect to collecting debt which you owe to your lender. Most frightening is your credit score gets affected when your account is with collection agencies. As credit score is important to every individual to attain his financial goals they try to damage that through some illegal tactics. In order to cope up with collection agencies one must have knowledge of the fair consumer act which is brought into effect by US government for the benefit of consumers. It is advisable that every individual must know his rights to avoid the threatening tactics from collection agencies.