Archive for September 12th, 2007
The Fair Debt Collection Practices Act (FDCPA) was written in order to protect consumers against improper collections practices. If you are facing financial problems that might have you dealing with collection agencies and debt collectors, it is extremely important that you know your rights as well as the boundaries of others.
Here is a list of the point that are of most interest to consumers:
1. Harassment: Collectors are prohibited from harassing the debtor or any other third party with which they have contact. Examples of harassment include threats of violence, publishing lists of bad debtors (with the exception of reporting them to credit bureaus), profane or insulting language, and using the telephone to annoy.
2. False Statements: Collectors are prohibited from using false or misleading information or statements when attempting to collect a debt. Such statements include false claims that they are attorneys, government representatives, credit bureau representatives, imply that not paying a debt is a crime, misrepresent the outstanding balance of your debt, claim that papers you received were legal documents when they were not, or threaten any form of legal action if they do not intent to do so.
3. Threaten Legal Action Unless They intend to Do So, And it is Legal: A debt collector may not claim that you will be arrested for not paying debts. They are also prohibited from stating that they will garnish wages and/or seize or place a lien on any property unless they truly intend to do so, and it is legal to do so. It is also illegal for them to state that legal actions, such as lawsuits, will be taken unless it is legal or if they do not intend to take such action.
4. Give False Information: Collectors may not give false information to credit bureaus, nor may they send you anything that looks like an official court or government document when it is not, nor can they use a false name.
5. Unfair Practices: Debt Collectors may not employ any unfair practice when collecting a debt. This includes such examples as collecting any amount greater than your debt unless permitted by state regulations, deposit a post-dated check before the date on the check, use dishonest to trick you into accepting collect calls or paying for telegrams, take or threaten to take property unless it is legal, or contact you via postcard.
6. Abuse Contact Techniques: A collector may not attempt to contact a debtor at inconvenient times of the day, and it shall be assumed a collector may only attempt contact between the hours of 8 a.m. and 9 p.m. He is also prohibited from contacting a debtor at his place of employment if the collector knows or has reason to know that the employer does not allow such communications in the workplace. When contacting third parties in an effort to locate debtors, collectors may in no way mention the debt or that the contact is in regard to the collection of a debt.
7. Correct Identification: A creditor must state that he is a debt collector and that he is attempting to collect a debt.
Please take a moment to review these regulations so that you can be more informed about your rights as a debtor. Also, if you are finding yourself in a financial situation requiring you to learn about your rights as a debtor, this might be a sign that you should seek some form of professional help. An expert may be able to give more insight into you personal situation and help you organize a plan to achieve financial independence.
September 12th, 2007
Credit card debt is like a vicious circle. Once you get into it, it is difficult to get out of it. Fortunately, there are ways you can tackle this problem. In this article I will tell you how to eliminate high interest debt today.
It is sad but true: people who have high proportions of credit card debt find it difficult to make ends meet. While the consumers find it difficult to even pay the interest rate regularly, it is the credit card companies which are riding high in profits. Believe it or not, these credit card companies are sucking the consumers’ wallets dry, as per the stats. In the year 2006, credit card companies had a record profit of more than 91 billion dollars in credit card interest alone, not to mention that they raked in more than 50 billion dollars in credit card fees and late fees.
If you are a consumer who is overburdened with credit card debt and are finding it difficult to meet the monthly financial obligations, it is time to take a look at your financial situation and also reassess your debt. To do this, collect all your past credit card statements in one place. Then note how and why you are unable to pay the debt on time and how the interest rate is accruing over the months. After doing this, you should be able to get a realistic understanding of your current financial position and see if you can manage to pay the debts within a reasonable time frame and thus save yourself from the burden of high interest rates.
You can use an Excel worksheet to calculate your finances and work out your monthly payments. After reviewing your debts, if you think that the amount of debt is too high for you to pay up within a reasonable time frame (say, within a month), then it is time to look for other options and seek help. As a consumer, you have options such as Debt Settlement, Debt Consolidation Loan, Consumer Credit Counseling and bankruptcy. Note that most people use bankruptcy only as a last resort, so try out the other options first to see if they can help you. Whatever you do, it is time to take action now. If you delay, the amount of your debt will get so high that one day you might have to sell all your assets! So take action now to minimize your debt and do whatever it takes to eliminate high interest debt today.
September 12th, 2007
Most consumers who are in debt are searching for an easy way to get rid of their debt. However, there is no magic solution for dissolving consumer debt. Often times, bills become too much for a person and they simply cannot pay them. This is when a debt negotiation company can help. A debt negotiation company can help you to get your bills lowered, so that you are able to better pay them.
Debt negotiation, also known as debt settlement is great when you are overwhelmed with bills People often turn to a debt negotiation program when they can no longer pay the minimum required payments. Generally speaking, consumers turn to a debt negotiation program after they have met with a debt consolidation program.
When searching for a debt negotiation program make sure the cost of the program is feasible. You will want to make sure you can afford the program. Otherwise, you are only causing yourself perpetual financial hardship. However, if the program is affordable and will work with your other monthly obligations, then the program is definitely worth considering.
When looking for a debt relief program, you will want to know if they report to any or all of the three major credit bureaus. Generally speaking, debt negotiations programs do not report your involvement with the company to the credit bureaus. However, there are some out there that do.
You will also want to know if the program offers any type of guarantee. For instance, if the program cannot help you reduce your debt, then you should not be obligated to pay their fees. Also, you want to stay away from companies that offer a quick fix to your financial problems.
When becoming involved with a debt negotiation program, it is important that you realize your credit rating will get worse before it gets better. All things considered, this is a small price to pay to get out from underneath your debt. Especially if without the program you are headed towards bankruptcy.
When searching for a debt settlement program, check to see if they offer any kind of assistance for bankruptcy, should their program not work for you. Some programs will give you a refund for their services, so that it can then be used for a bankruptcy lawyer.
Ask family and friends for names of debt relief companies they have used before. If you are not comfortable with going to family and friends, you can also check with the Better Business Bureau. You want to make sure that you are working with a reputable company.
Although no one likes to admit they are having financial problems, there are times when help is needed. That is when a debt negotiation program can help. Before signing up with a debt negotiation company, make sure you do your homework about the company. Be sure that the program fits your current needs. After signing up with a debt settlement program, you can soon be on your way to financial freedom.
September 12th, 2007
