By
Mallory Megan on Saturday, August 7th, 2010 |
No CommentsIn the first two articles I wrote about what a collections account was, how sending delinquent accounts out to an agency profits a creditor, and the act of a third party collection agency buying old debt from a creditor.
I spoke about what kinds of information a collection agency will use and collect in their efforts, and additionally that third party collection companies are governed by federal and state laws and are overseen by the FTC.
Some collection agencies will use illegal, deceptive and strong arm tactics to confuse and intimidate consumers including pretending that they are one of their creditors and requesting them to verify information, pretending to be an old friend or neighbor to catch a debtor off guard, repetitively calling or mailing a debtor to the point where it becomes a nuisance, or sending threatening letters or leaving threatening voicemail messages.
Legal but manipulative practices include pressing the debtor, preying on their emotions, and using vague threats like \”respond within ten days or further collections attempts will follow.\” Other illegal methods include idly threatening lawsuits or pursuing lawsuits when the collection agent has no intention to, threatening to throw a debtor in jail, threatening to garnish wages or seize bank accounts when they have no authority to, lying about the amount that is owed, or asking for more than what is owed are used as well.
For the bill collection industry, time is the enemy and an excellent collection agent is fully aware of this fact. Their goal is specifically to obtain money as soon as possible.If you are talking to a debt collector, keep in mind that at any time you have the legal right to tell them you are busy and will call them back if you are flustered, hang up, cool off, develop a game plan, and contact them later. An aggressive debt collector will ask you why you can\’t make payment arrangements today.
Rapid Recovery Solution is a commercial collection agency that writes stories on medical collection companies. Check here for free reprint licence: Legal And Illegal Tactics A Debt Collector Will Use To Collect: Debt Collection Basics Part Three.
By
Mallory Megan on Friday, February 5th, 2010 |
No Comments
Money is limited these days for everyone struggling to keep their standard of living. In the past, loans carried you through college, but now that you\’re out these debts have come out to haunt you. You may be contacted by various debt collectors and left a frantic mess seeking someone who can help you with a school loan consolidation.
A good deal of students that have just finished their education and are currently looking for jobs try for federal school loan consolidation first. This loan has a great deal of benefits. First, the government is the source of this loan but it is issued by private lenders. That means that the time you have to repay the loan can be extended for a long duration.
Perhaps the most enticing benefit of school loan consolidation is that the multiple student loans are substituted with just one loan. The overall sum of the debt is reduced; at times this reduction can even go up to 60%. This, of course leads to reduction in your monthly payment.
Even better, the new rate of interest is determined by the weighted average of the rates that are applied on your present loans. In addition you\’ll get rid of the mental stress associated with remembering the details about multiple loans. Consolidation does not require a cosigner or any checking of the credit score, and you can utilize this opportunity to improve the credit score or rating.
The only con of the situation is that is it is very difficult to prove yourself eligible for the federal school loan consolidation. Typically, you will need the assistance of a good debt consolidation expert to prove that you are eligible for this kind of consolidation. The standards to be qualified for this loan are very rigid, leaving many ineligible for the loan. Nevertheless, it is worthwhile to check to see if you qualify. It could be a good resource for protecting your finances in the future.
Mallory McGuinnessworks for a debt collection company. She also does articles on consumer spending, business and finance, and debt collection. Click here to get your own unique version of this article with free reprint rights.
