Debt Collection – Useful Info

Debt Collection

Debt Collection

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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Debt Accumulated by a Holder’s of credit card Who Has Deceased – Useful Info

Debt Accumulated by a Holder's of credit card

Debt Accumulated by a Holder’s of credit card

Many people will want to know how can they, as authorized users of a Holder’s of credit card, be held responsible for credit card debt when the credit card holder has deceased. If you count among these persons, you need to know how you can handle this situation when debt collectors start to ring at your door bell.

More than this, many authorized users are even recorded on their credit reports with the debt that their deceased partner has accumulated on the credit card. However, the solution described below will mostly apply to those people who do not hold a joint account with the deceased. Check with the following things that you can do:

* First thing to do is to determine the correct ownership of the credit card. If you are the only authorized user of the Holder’s of credit card you are not supposed to be held responsible for paying off the deceased’s debts. As mentioned above, this won’t apply for you if you have a joint account which in this case, the creditors can find ways to make you pay off the debts.

* In order to determine the ownership of the account you need to request copies of your annual report (check online and find the credit reporting agencies where to request these copies).

* Once you receive the credit reports you will take a look at these accounts and find out whether you are the authorized user or the joint account holder. With your being the only authorized user of the credit cards, you won’t be accountable for the debts that the deceased has made in the past. You should as such contact (you can call or send a written letter via mail) the creditors and notify them about the deceased partner. You should also let them know that you want for your name to be written off from these accounts.

* If you want to check whether your name has been written off, you just need to request other copies after two months from the date you have notified the creditors. In case you find out that your credit report still has the listings and thus they haven’t been deleted, you should dispute these listings with the credit reporting agencies. Again internet venue can be a good source of information in relation to these disputes. Several forums are there available to inform you on how to dispute the undeleted listings from your credit report.

* In case the debt collectors and creditors call you for collecting the money, you should simply inform them that you are not the primary owner of the Holder’s of credit card and thus not being responsible for the credit card debt. Also inform them that your financial status is very poor and there is no way for you to be able to pay off a debt that hasn’t been yours in the first place.

* This is definitely not the kind of news that creditors expect hearing, but there is nothing legal for them to do and compel you pay off the debt.


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Dealing with Unexpected Debt Claims – Useful Info -Debt collection problems

Unexpected Debt Claims

Unexpected Debt Claims

Maybe you have heard of situations when a person has unexpectedly received a debt claim and didn’t know how to deal with this situation. It is important to know how to take action if such a thing happens to in the future. The first thing you need to know of is that under the Fair Debt Collection Practices Act you have the right to fight back those collection agencies that are ready to go over the limit when there is merely a few thousand dollars gathered in a debt. Check for the following things that you can do:

1. Make sure that you validate the debt since you can not go along and pay a debt that is not really yours. Do not forget that you are entitled to ask the collectors about the so-called debt they say that you owe. In their turn they must answer back within five days presenting you the letter with their response.

2. In case there is about an old debt you are recommended to check with Statues of Limitations that is regulated in your state. Many collection agencies will go for collecting out of statutes debts but if yours is out of statutes, then the agency is not entitled to collect it or even file a credit card lawsuit against you. If they however threaten with this lawsuit you can go against them for crossing the line.

3. Another thing that you can do and probably not know about it is that under the Fair Debt Collection Practices Art you are entitled to notify the debt collecting agency about the way they can contact you. For instance, if you do not want them to call you between specific hours, then you can bring this to their attention. If you do not want them to call you at work, you can as well notify them about this.

In case they persist with going the way they want, you have the right to make a complaint and fight against their manner of collecting the money. You should know that these measures that you can take are actually your way of saying that your rights have been violated. If the agency is found to have violated these rights, they can pay compensations for the harassment.

As a conclusion to all these, debt collecting agencies can be stopped from using inappropriate means of collecting the debts. Some of them even use all sorts of scary means and threats only to make sure that they collect the debt. Show them that you do not tolerate these means and that they will eventually face a payment for not backing up with their intimidating methods.

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Whole life insurance vs term life insurance – The difference

Whole life insurance vs term life insurance - The difference

Whole life insurance vs term life insurance – The difference

Once you have decided to purchase life insurance, the next decision you will likely be faced with is whether or not to purchase term life insurance or whole life insurance. Basically, term life insurance guarantees a specified death benefit payout if the insured dies before the term is expired. In return, the insured must pay premiums to maintain the coverage. Whole life insurance also provides a death benefit, but also has an investment vehicle built in so that the policy earns cash value as the term progresses. Today it’s never been easier to get life insurance quotes online.

To help make your decision between the two types of policies  ( Whole life insurance and term life insurancen ), you should consider the following:

Whole life insurance is more expensive than term life insurance

Due to the investment portion built into whole life policies, the premiums on this type of insurance are higher than those for term life policies. There are additional fees that are paid through the premiums that are not included in a term life policy. Also, the investments made with whole life insurance may not yield returns that are worth the increase in payment. Sometimes it is better to invest that difference in price into other investments that provide higher returns.

Term life insurance expires while whole life insurance does not

Term life insurance policies expire when they reach the term for which it was purchased. In most cases, the insured can renew the policy; however, he or she is subject to having to go through another medical exam and application process. This can be a concern if the insured is significantly older than when the first policy was initiated or has health issues that have developed.

Whole life insurance usually guarantee coverage for the lifetime of the insured and the policy remains in effect even after the premium has been paid, as long as the premiums are made for the specified amount of time. This type of policy is typically called permanent life insurance.

Purchasing term life insurance gives the opportunity to choose other investments

Most term life insurance policies provide more than adequate benefits to pay off average debts such as mortgages and credit card debts, and also medical expenses. Your survivors can be provided for completely. You can take any extra money and invest it in the ways you want.

With whole life insurance, the insured does not have a say in how their premiums are invested. The insurance company makes all those decisions. In many instances, the gains on the investment are not substantial.

Unless you have substantial wealth and would benefit from the purchase of a whole life insurance policy to help pay the taxes on your estate after your death, or if your health is poor and you are concerned about being able to get another insurance policy, term life insurance is the more practical choice.

For most of us, the term life premiums are affordable and will provide quite enough protection for our survivors after our death. The savings in the premium prices will also allow for investing in other ways that will likely be more profitable than those chosen with whole life policies by the insurance companies.

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