Bill consolidation laws
If you are unable to repay your debt on time, your creditor may hand over your account as a charge to the collection agencies. The bill collectors and collection agencies will adopt various unfair means to recover the money from you. To protect you from their harassment and intimidation, bill consolidation laws, like, the Fair Debt Collection Practices Act (FDCPA) have been introduced. People who are lagging behind on their bill payments often face problems with collection agencies.
Know your rights and be acquainted with Civil rights law.
The debts which are usually covered under Fair Debt Collection Practices Act are:
Personal loan
Household debts
Auto loan
Medical bills
Home Mortgage
Credit card debts
Retail financing
Second mortgage
Restrictions imposed on collection agencies by the FDCPA
Bill consolidation laws set certain guidelines that the collection agencies have to follow when they try to recover money from the debtors, you can take suggestions from a collection attorney also. The consolidation laws can also initiate measures against collection agencies if they fail to comply with the Fair Debt Collection Practices Act (FDCPA). The restrictions are:
No harassing phone calls: The creditors are not permitted to call you in your office during working hours and they are not allowed to use abusive language to compel you to pay the money. They cannot even call you at unreasonable times. HE cannot make the call before 8 a.m. And after 9 p.m., unless he has prior permission from you.
Not involving any third party: The creditors cannot involve any third party of the debtor, like, a relative, a friend, an employer, or a neighbor. However, if there is a co-signer to the debt, he can be contacted.
No threatening to the debtor: These laws also prohibit collection agencies from misguiding debtors. For instance, these laws stop collection agencies from posing fake threats about the outstanding balance, repossessing your properties, or initiating legal proceedings against you, if you fail to make payments on time. In addition, activities like posing threats to cause physical injury or making your name public to stain your social image are prohibited.
No usage of obscene language: The creditors cannot use any obscene language, insults, or racial slurs, against you.
No fraudulent representation: The creditor cannot take any unfair means by making any false representation in association, in order to collect debts, saying that the person calling you is an attorney, or falsely threatening you that he has filed a lawsuit against you. He cannot take any false name, to give you the impression that the person calling, is a government representative.
The goal of passing bill consolidation laws is to eliminate abusive collection practices assumed by collection agencies and bill collectors.
Harassment will more often than not take the form of credit or debt collection companies applying force to those who are unable to pay their dues.
