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Federal Fair Debt Collection Practices Article
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Creditors and the Debt Collection Letter
from:You may think that the debt collection letter that’s sitting in your mailbox is nothing but pain mailed directly to you. However, you have to keep in mind that for every debt collection letter that is sent, the pain goes both ways – the creditor is desperate for payment for an overdue account and the debtor is scrambling for money to meet the due date of the payment. So, just as much as the debtor feels pressure, so does the creditor. After all, every delinquent account means that the company will not be getting back some money.
So, what exactly does a debt collection letter contain? The debt collection letter is sometimes referred to as a letter of demand. This letter notifies the debtor of the outstanding balances or unpaid amounts on his account. In certain cases, the letter may also inform the debtor that unless he is able to make the payments on time, court action may be used against him.
In order to help the creditor grasp the full details of the debt, the debt collection letter must come with all the documents that are related to the account. These include copies of the contracts, invoices of past payments, and other letters of agreements made between the debtor and creditor. This way, the debtor will have the documentation that proves that he is responsible for the debt.
The debt collection letter lets the debtor know that the creditor is serious about getting his money back. And in the event that the matter goes to court, the creditor can use the letter as proof that the company did attempt to contact the debtor in an effort to settle the account.
Now that the debt collection letter has reached your mailbox, what do you do next? The first step is always to respond to the letter. You have to let the creditor know that you are not running away from your responsibilities. If you ignore the letter, you may put yourself in more trouble.
Before you respond, study the letter and the attached documents. If you need to dispute the debt, contact a lawyer who can help you. Once you and your lawyer have drafted a letter of dispute, mail it to the creditor immediately. If you agree that you do owe the debt, you should contact the creditor as well.
Once you have contacted your creditor and your responsibility for the debt has been duly established, you may begin to negotiate with the creditor. You can offer to pay several installments or you may offer to pay immediately but with a lesser amount. Since the creditor most likely wants to save on the costs of pursuing you for payment, he is bound to agree.
After you respond, the debt collection letter has done its job. It has opened a way for the creditor to reach you and inform you of your delinquencies. At the same time, the letter has made some options available to you, and you can select a payment scheme that is affordable to you.
Federal Fair Debt Collection Practices News
Fair Debt Collection Reform Bill Re-Introduced by Barney Frank - InsideARM
 InsideARM | Fair Debt Collection Reform Bill Re-Introduced by Barney Frank InsideARM Thursday introduced another bill that would amend the Fair Debt Collection Practices Act (FDCPA) to specifically exempt debt collectors from liability when using approved language in voice mails and messages. The bill's (HR 5794) purpose, as officially ... |
Mike Ginsberg: First Quarter ARM Legal, Legislative and Regulatory Climate ... - InsideARM
 InsideARM | Mike Ginsberg: First Quarter ARM Legal, Legislative and Regulatory Climate ... InsideARM Barney Frank introduced HR 4101, The Fair Debt Collection Practices Clarification Act of 2012. This bill seeks to amend the Fair Debt Collection Practices Act to exempt a debt collector from liability when leaving certain voice mail messages for a ... |
Luebke Baker & Associates, FTC Settle For Collecting On Fake Debts - Huffington Post
 The Consumerist (blog) | Luebke Baker & Associates, FTC Settle For Collecting On Fake Debts Huffington Post Luebke Baker will now stop faking debts that do not exist and will tell consumers their rights under the Fair Debt Collection Practices Act. The FTC alleges that debt collectors at Luebke Baker frequently pretended that they were attorneys or worked ... FTC settles with debt collectors over bogus magazine payments Fake debt scam surfaces in Upson County Know your rights when dealing with a debt collector |
24HourPaydayLoan.com Unveils Lending Policy Article - Midland Daily News
 Deseret News | 24HourPaydayLoan.com Unveils Lending Policy Article Midland Daily News In the new lending policy article, consumers will find information on policies such as the Fair Debt Collection Practices Act, which was set in place and is enforced by the Federal Trade Commission. This particular policy prevents 24 hour payday loan ... GetCashToday.com Offers Up New Lending Policy Resource Faxless Payday Loan Launches New Lending Policy Material |
Fake Debt Scam Reaching Upson County - LoanSafe
 eCreditDaily.com | Fake Debt Scam Reaching Upson County LoanSafe (MCT) — A fake debt collection scam that the Federal Trade Commission is already looking into has made its way to Thomaston, and one woman who is fighting back wants others to be aware of the scam. The woman, an employee of Upson Regional Medical ... Debt Collection Scheme Eyed Magazine Subscriptions: FTC |