If you default on your debt payments several times, after a stipulated period of time, the lending institutions sell the debts to the collection agency. The collection agency can not put you behind bars but they can certainly drive your live crazy by repeated phone calls,millions of mails and billions of e- mails. However a little patience and a few simple strategies like debt validation or debt settlement programs can spare you the horror of collection agencies. Read on to know what these resorts are in detail.
When the collection agent knocks at your door for the first time to recover the owed amount, your first and foremost duty is to ask for a debt validation to verify whether you are liable to pay the owed amount which the collection agents are claiming. Under theFair Debt Collection Practices Act the consumers are protected from all sorts of illegal collection practices. If you know your consumers rights well that are conferred on you by FTC then it would be much easier for you to save yourself from harassing phone calls, profane language and collection threats.
Verification of SOL
Your next step must be to gain as much knowledge as possible on statute of limitation (SOL) on your state. By doing so you can have a clear idea about the time when your debt collectors are allowed to file a lawsuit against you in order to collect the owed amount and how much time you have on your hand to prepare for the impending danger.If you discover that your debts are more than 7 years older you can be free from its obligations and the amount will be eliminated from your credit report.
If you find your account is yet to exceed the SOL you can consider debt settlement as your viable option. By settling your debts you can slash down the spiraling interest rates and eradicate the late fines entirely. Settlement not only lowers your outstanding balancebut also allows you to pay through an affordable repayment plan.
Keep a track of your dealing with the collection agency
It is highly recommended to maintain a record of your dealings with the collection agency. When the debt collectors give you a call you can record the phone call as evidences of the debt collection agency’s ill treatments with you. If your state law asks you to inform your collection agency before recording the calls then you must follow the order.
Make sure you get the agreement for settling your unpaid debts signed by the collection agency before making the final payments. If you find difficulty to negotiate on the owed amount with the agency, hire a debt relief company who can provide expert help andadvice. Hopefully, by following the above mentioned points you can pay off your debts with ease and protect yourself from legal hassle.