Beside the fact that there is the debt people need to pay off there is also the debt collection agent that makes use of all sorts of means to convince these debtors to pay off their outstanding balances. While there are some ways to resort to in order to get these debtors off the hook, there is still a considerably large number of people who are not in the position of paying off their debts.
Many of them do not have the means any more while others simply have a poor management of their finances. But no matter which the reason is that determines these debtors to be at default with their repayments, the thought of being called by debt collection agencies surely scares them off.
The means through which debt collectors operate into recuperating the money owed by debtors are not always orthodox, and this can make more harm than good to the collector’s business. There are as well the legal threats and official reminders that can make the life of a debtor more stressful, but the result is usually the same: debt collectors are seen as negative entities within the industry they operate.
All the se things can lead one to a single conclusion: that the ethics of debt collecting are of essential meaning when it comes to this sort of business. It is important at this point for debt collectors to always maintain a strictly professional relationship with the debtors since intimidation practices are not seen as positive attitudes by all the involved debtors. The normal process of debt collection should be done as follows:
* Tracking down the debtor to whom afterwards reminders and warnings should be issued.
* In case of a negative response, the debt collecting agency should issue legal documentation into court proceedings to include also the court summons. At this point many debtors will have a positive response and immediately proceed into finding ways to pay off their debts.
* When the legal documentation fails as well into getting a positive response, then there is the legal action for the debt settlement to be processed in court. This is where the role of the debt collecting agency ends.
There are as well all sorts of regulations issued by the state where the debt collecting agency resides to outline the dos and don’ts of these agencies, many of them complying with the requirements of the Fair Debt Collection Practices Act. Other bodies that regulate the practices of debt collection agencies are: State laws to protect consumers, the Federal Trade Commission, the Consumer Financial Protection Bureau (CFPB), and State regulatory agencies.
As a debtor you should know what all these regulations are because in this way you can learn your rights in relation to the practices that debt collection agency make use of. When these practices are violated you are entitled to take action against the particular debt collection agency and its agents.
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