My OperaConsumer Debt Relief What Every Debtor Should Know
Monday, June 7, 2010 8:23:34 PM
It begins with the mail. Then more aggressive mail. Then come calls on the telephone and worst of all, threats about credit reports or even a potential lawsuit.
To retrieve debt creditors hire collection agencies. These third party companys generally work on commission which fuels their vigorous attempts to retrieve money.
Collection agencies do have the right to report your debt to credit bureaus. Paying off the debt will not result in it being removed from your credit reports, it will be marked off as "paid." They also can request a debtors credit report to analyze the person's financial situation, or to get an updated address and phone number. And, although collection agencies do not like to send many accounts back, sometimes they will refer their account back to the creditor and recommend filing a law suit.
There are rules and regulations that collection agencies have to follow. Mail must be sent out in ambiguous envelops that do not reveal that any type of debt is owed. When calling on the phone, a collector may not disclose the reason for the call. For example, if a collector reaches an answering machine, they cannot state the purpose of their call, all they can do is leave their name and a number where they can be reached.
Although collection agencies are permitted to contact the debtor's at their place of employment, they definitely cannot attempt to get a debtor dismissed from their job. No kind of information concerning the debt may be made public, although collection agencies can communicate openly with credit bureaus. Even though many people believe that a collection agency could legally seize a debtor's bank account, paycheck and assets, the company cannot unless their has been a successful law suit ordering them to do so. Under no circumstances can a collection agency threaten a debtor with violence.
Despite the fact that some collections agencies may attempt to practice illegal tactics to get money, there are also a large number of reputable ones. With important issues like debt, it is always a priority to know your rights.
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is a third party debt collection <http://www.rapidrecoverysolution.com>agency.
