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Know The Dos And Don’ts Of Debt Collecting By The Lenders

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Whether it is through an agency or by them, no money lender can go overboard and beyond the peripheries of law while collecting debts. If you fail to pay a couple of payments, you may receive collections calls as a usual debt collecting process but there are ways in which you can handle aggressive debt collection practices. For this, you will need to know the dos and don’ts of debt collecting.

First, you must know the legal status of a debt collector. A debt collector can be a person or an agency employed by the creditor. The primary job of the debt collector is to:

  • Provide information about your loan account
  • Demand skipped payment from you
  • Explain the consequences for not paying
  • Offer you an option to settle your loan account
  • Suggest alternative payment arrangements
  • Review all of your existing payment arrangements
  • Inspect the mortgaged goods and even recover it provided they have the right to do so
  • Ask clarification if you have not responded to any previous attempts by the creditor to contact you and
  • Inquire about the causes for which you could not keep up with your agreed repayment plan.

All these inquiries must be made in a professional and respectful manner as per the law.

How and when to contact

The debt collectors or even the creditor can contact you over the phone, through written communications such as letters and emails and even through social media apart from visiting you in person.

When they do so you should be prudent enough to make a note of everything including the name of the person, agency if any, time and date, what conversation you two had, mode of contact and preserve it.

  • All the times and according to FDCPA, the debt collectors must honor your rights especially your right to privacy. Moreover, the law prohibits them from revealing or divulging your personal information and your financial condition to any other person without your consent.
  • There are few other restrictions that include that no debt collector can visit you on national public holidays.
  • When it comes to phone calls, they are not supposed to call you more than 3 times in a week or 10 times in a month. Apart from that, all these calls must be made between 7:30 am to 9:00 pm on weekdays and 9:00 am to 9:00 pm on weekends unless you agree otherwise.
  • They can contact you face to face when you do not respond to other means of contact tried by the collector or through the email address mentioned on the website of the collector such as https://www.libertylending.com/. However, they should not contact you if you have already made repayment arrangements or such arrangements can be made over the phone, by letter or email. Moreover, they cannot meet you more than once a month and that too between 9.00 am and 9.00 pm whether it is a weekday or at the weekend.
  • Social media and email may also be sued by the debt collector but they must first make sure that your account is not shared with any other person. It is also required to make sure that such messages shared between you and the creditor cannot be viewed by any other person except you.

Unacceptable behavior By collectors

Any of the following behaviors of the debt collector will be considered as unacceptable and against the law:

Trespassing, threatening or intimidating you is a serious offense. It also includes physical force to you or anyone else, threatening to damage or damaging your property; blocking your way or access to your property, staying in your premise when asked to leave unless they carry a Court Order. In such situations, you can call the police immediately.

Verbally abusing and harassing is also prohibited and other acts such as shouting at you, making demeaning and personal comments, contacting you frequently, unreasonably and at unreasonable times and using racist or obscene language.

Taking advantage of you is also not allowed by the law especially if you are ill, disabled, aged, illiterate, or if you are unfamiliar with the law and debt recovery process and about the consequences of non-payment.

In such cases, you can write to the lender or complain about the phone. For information regarding making such complaints, you may visit https://www.libertylending.com/ if they are the lender or websites of your specific creditors.

Cooperate in a professional manner

You must cooperate with your creditor or the debt collector appointed by your creditor when contacted but make sure that you are treated in a professional manner. As for your part, you must also:

  • Return calls from your collector
  • Be honest about your financial condition
  • Tell about all other debts that you have
  • Respond to correspondences made promptly
  • Agree to an affordable repayment arrangement and
  • Inform if there is any change in your contact details.

Use hardship variation

When you deal with a debt collector, you must make a wise decision to make the best use of your financial hardship. Whether the collector contacts you for a personal loan, credit card or home loan you should explain your hardship to the collector. This may sometimes help you to make an application for a change in your repayment plan. This is a very useful step if there is no court judgment made yet.

However, taking advantage of your hardship, you may be offered options for credit repair which you should be wary of. No matter how good an idea it may seem to you, it always comes with a lot of risks.

Moreover, most of the credit repair companies will be unable to provide you with what you want making your situation even worse. Therefore, anything that sounds like ‘credit fix,’ ‘credit repair’ or ‘debt solution,’ such companies must be avoided. They will not be able to repair the damage in your credit report as in most cases historical information and default listings are very hard to remove until and unless you prove them to be wrong.

Therefore, be wise and have a calm head to make the best decision.


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