Having debt is a common thing that people would resort to do to serve a particular purpose. The purpose may vary and of course, processing a loan from a financial institution is great especially if it is intended for business. However, despite the noble goal of doing it, sometimes there are problems to arise with respect to paying the principal amount and the corresponding interest. So, the tendency is you will be going to have a lot of calls from the debt collection agency. This may be a phenomenon, especially during this pandemic time. Thus, you should know the limits and bounds as far as debt collection is concerned.
The most important thing you should avoid is debt collection harassment, according to Paul Mankin. The government has passed a regulation and policy to avoid harassment when it comes to collecting debt. That is why it is necessary to make sure that you know those things you can do the moment you may experience the so-called harassment in relation to debt collection. Otherwise, your rights would completely be violated and you could do nothing about it. Therefore, it is vital to determine your rights as enshrined in the best practices to collect debts.
Determine first if the collection agency violates your rights
As a borrower, of course, it is your deemed obligation to pay the principal amount plus the interest rates allowed by the law. Regularly, there is a schedule wherein you should pay the corresponding debit and its interest computed based on a certain formula. The moment you fail to pay the amount as caused by a number of factors, the stress level may tend to increase. Such stress may affect the borrower (you) as well the lending company. So, there can be a tendency that the debt collection agency may resort to debt collection harassment for the purpose of compelling you to pay the due amount.
However, you should know that when the act of collection is categorized already as a form of harassment, then you have the right to sue the collection agency. Did you know about it? Hence, you have to determine exactly if the act itself of the collection firm is beyond what law has stipulated. The question is: At what point is debt collection harassment considered? This is a great question for clarification purposes here.
There are some parameters to consider debt collection as a type of harassment. A debt collection harassment attorney knows all these things. When you’re being coerced, bullied, abused, and intimidated by the collection agency, then clearly put, you’re being harassed. When this inopportune moment exists, you need to consult an attorney for you to be able to know what steps are going to be done next. Harassment in this form is strictly prohibited by law, particularly by Fair Debt Collection Practices Act (FDCPA). This law has been enacted to shield or protect you from any form of harassment, abuse and oppression.
Take note that sometimes the collecting agency may resort to abusing you just to get their commission out of the collected amount. This is somehow the internal arrangement between the collecting agency and the financial institution that owed money to you. For every penny being collected, there can be a sort of commission that will go to the pocket of the collector. So, the more, the merrier, in a clear sense. The more they can collect, the more the collector can possibly earn. That is why sometimes, they will go beyond that is mandated by law.
Statute of limitations is a rule of the game you have to know
Sometimes, a debt collector may do things that are dirty in nature. In other words, the agency may opt to execute the so-called dirty tactics. This is related to the statute of limitations. You have to know that old debt have a certain timeline when the lending institution is allowed to collect the debt coupled by its agreed legal interest rates. So, maybe the more proper question here is: How long is a firm allowed to collect a certain debt from a borrower? How many years?
It’s better for you to consult a local attorney in your area regarding this statute of limitations. According to Paul Mankin, “Our office will cater to anybody who wants to know everything in this regard. Collecting old debts in a coercive manner is not allowed by law granted that every debt has a timeframe for it to be collected.” Does it mean that any old debt should not be collected? No, this is not the case. However, you should know that the credit company may no longer have the right against you in the matter of compelling you to pay the debt as early as possible.
Thus, talking to a lawyer is the best thing you should do. This is somehow related to the idea of knowing the exact thing to avoid loopholes and other related lapses. It is best to rely upon the expert in this field, who is a debt collection harassment lawyer. Lawyers, like Paul Mankin, know how to handle this thing for you. If you want to make sure that you can do the steps according to the framework of the law, then you should be guided by a legal expert.
Avoid scams as well, not only debt collection harassment
Not only the coercive and abusive techniques by the debt collection agencies that you should avoid. You also have to be aware of the so-called “debt collection scams.” From the term itself, scams, it means the collection per se is not in any possible way allowed by laws. You have to keep in your mind that scammers are proliferating these days. Sometimes, you will receive calls from people pretending to be working in a certain financial institution. They would ask for information related to your credit cards. This is a form of harassment so you should report this to the concerned financial institution and you can as well consult a lawyer even just over the phone or through a lawyer’s website contact form for clarification on what you should do next.
The clearest indicator that the caller is doing a scam is when you sense that the manner of asking you questions related to your credit card is very aggressive. However, some of the third-party collectors are also aggressive in nature when they talk to you. So, the best thing to do is to determine a third-party collecting agency, like ERC Collections. They are not scams, so to speak.
You need to know that those things are important for you to avoid debt collection harassment in whatever form it may be. That is why to ensure that you’ll be on the right track, you’re advised to rely upon the expertise of a debt collection legal mind or an attorney. Only through this way where you will be able to protect yourself using the rights provided for and by FDCPA.