Debt Consolidation Loans

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FAIR DEBT COLLECTION



If you use credit cards, owe money on a personal loan, or are paying on a home mortgage, you are a “debtor.” If you fall behind in repaying your creditors, or an error is made on your accounts,

you may be contacted by a “debt collector.”

 

You should know that in either situation the Fair Debt Collection Practices Act requires that debt collectors treat you fairly by prohibiting certain methods of debt collection. Of course, the

law does not forgive any legitimate debt you owe.

 

This brochure provides answers to commonly asked questions to help you understand your rights under the Fair Debt Collection Practices Act.

 

What debts are covered?

 

Personal, family, and household debts are covered under the Act. This includes money owed for the purchase of an automobile, for medical care, or for charge accounts.

 

Who is a debt collector?

 

A debt collector is any person, other than the creditor, who regularly collects debts owed to others. Under a 1986 amendment to the Fair Debt Collection Practices Act, this includes attorneys who collect debts on a regular basis.

 

How may a debt collector contact you?

 

A collector may contact you in person, by mail, telephone, telegram, or FAX. However, a debt collector may not contact you at unreasonable times or places, such as before 8 a.m. or after 9 p.m., unless you agree. A debt collector also may not contact you at work if the collector knows that your employer

disapproves.

 

Can you stop a debt collector from contacting you?

 

You may stop a collector from contacting you by writing a letter to the collection agency telling them to stop. Once the agency receives your letter, they may not contact you again except to say there will be no further contact. Another exception is that the agency may notify you if the debt collector or the creditor intends to take some specific action.

 

May a debt collector contact any person other than you concerning your debt?

 

If you have an attorney, the debt collector may not contact anyone other than your attorney. If you do not have an attorney, a collector may contact other people, but only to find out where you live and work. Collectors usually are prohibited from contacting such permissible third parties more than once. In most cases, the collector is not permitted to tell anyone other than you and your attorney that you owe money.

 

What is the debt collector required to tell you about the debt?

 

Within five days after you are first contacted, the collector must send you a written notice telling you the amount of money you owe; the name of the creditor to whom you owe the money; and what action to take if you believe you do not owe the money.

 

May a debt collector continue to contact you if you believe you

do not owe money?

 

A collector may not contact you if, within 30 days after you are first contacted, you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.

 

What types of debt collection practices are prohibited?

 

Harassment.  Debt collectors may not harass, oppress, or abuse any person. For example, debt collectors may not:

 

l     use threats of violence or harm against the person, property, or reputation;

 

l     publish a list of consumers who refuse to pay their debts (except to a credit bureau);

 

l     use obscene or profane language;

 

l     repeatedly use the telephone to annoy someone;

 

l     telephone people without identifying themselves;

 

l     advertise your debt.

 

False statements.  Debt collectors may not use any false statements when collecting a debt. For example, debt collectors may not:

 

l     falsely imply that they are attorneys or government representatives;

 

l     falsely imply that you have committed a crime;

 

l     falsely represent that they operate or work for a credit bureau;

 

l     misrepresent the amount of your debt;

 

l     misrepresent the involvement of an attorney in collecting a debt;

 

l     indicate that papers being sent to you are legal forms when they are not;

 

l     indicate that papers being sent to you are not legal forms when they are.

 

Debt collectors also may not state that:

 

l     you will be arrested if you do not pay your debt;

 

l     they will seize, garnish, attach, or sell your property or wages, unless the collection agency or creditor intends to do so, and it is legal to do so;

 

l     actions, such as a lawsuit, will be taken against you, which legally may not be taken, or which they do not intend to take.

 

Debt collectors may not:

 

l     give false credit information about you to anyone;

 

l     send you anything that looks like an official document from a court or government agency when it is not;

 

l     use a false name.

 

Unfair practices.  Debt collectors may not engage in unfair practices in attempting to collect a debt. For example, collectors may not:

 

l     collect any amount greater than your debt, unless allowed by law;

 

l     deposit a post-dated check prematurely;

 

l     make you accept collect calls or pay for telegrams;

 

l     take or threaten to take your property unless this can be done legally;

 

l     contact you by postcard.

 

What control do you have over payment of debts?

 

If you owe more than one debt, any payment you make must be applied to the debt you indicate. A debt collector may not apply a payment to any debt you believe you do not owe.

 

What can you do if you believe a debt collector violated the law?

 

You have the right to sue a collector in a state or federal court within one year from the date you believe the law was violated. If you win, you may recover money for the damages you suffered. 

Court costs and attorney’s fees also can be recovered. A group of people also may sue a debt collector and recover money for damages up to $500,000, or one percent of the collector’s net worth, whichever is less.

 

Where can you report a debt collector for an alleged violation of the law?

 

Report any problems you have with a debt collector to your state Attorney General’s office and the Federal Trade Commission. Many states also have their own debt collection laws and your Attorney

General’s office can help you determine your rights.

 

If you have questions about the Fair Debt Collection Practices Act, or your rights under the Act, write: Correspondence Branch, Federal Trade Commission, Washington, D.C. 20580.  Although the FTC generally cannot intervene in individual disputes, the information you provide may indicate a pattern of possible law vi
olations requiring action by the Commission.

 

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Already you have bad credit branded upon your credit report. On top of that, you now have multiple debts creeping into your life steadily. It may look like you have little chance for recovery. However, you do have a solid alternative that can help you overcome your debts while repairing the damages on your credit. This option is known as bad credit debt consolidation.

Bad credit debt consolidation is a way of managing the repayment of multiple debts. It consolidates all the debts into a single one so that you end up paying a single installment to a sole creditor. Your debts may include unpaid utility bills/ store card bills/ credit card bills or unpaid personal debts. You may have any arrears, defaults, late payments, CCJ, IVA, bankruptcy or simply low credit score. But you do need to fulfill a standard criterion: your debts should total over £5000 and the number of creditors you owe to must be more than one.

If you are eligible for bad credit debt consolidation, then you can start repaying your debts easily. As mentioned before, all your debts will be merged into a single. Then the inetrest rates and fees on them are lowered or frozen, if possible. You will be given a loan which can help you repay the debts gradually. So you will have the following benefits:

* Repayment amount is lessened due to lowered interest rate

* You are accountable to only one creditor

* Making a single payment is simpler than paying multiple installments

You will make your payments to your debt consolidation agency and they will in turn distribute the amount among the creditors.

Bad credit debt consolidation can help you stand up on your feet again. It considerably reduces the burden of debts form your life. You will feel the pressure ebbing away as your debts get repaid each month. Moreover, your credit will also be repaired to a great extent. While choosing debt consolidation agencies, select one which has a good reputation and years of experience.

If you are person who spends lavishly then most probably you would be buried under many loans and debts. This is why you have the headache of fighting with multiple debts. You can therefore opt for a credit debt consolidation loan. Thus you can improve your credit score by managing different loans with the help of a single loan.

This eases you off with the problem of tackling multiple creditors just by paying off to a single creditor. You can easily clear outstanding debts, less paper works, no more threats from lenders calls, reduced installments to be paid thereby eliminating your stress and headache to the minimum. You have various options to choose from like searching on the internet for different online lenders. You are supposed to fill a single online form and an online loan calculator shall help you in determining the estimate for your monthly installment payments.

You can also go to credit consolidation organizations that guide you how to improve your credit score and money spending habits. You should keep in mind that you are not cheated on any grounds later in the future and have all the terms of debt clear to you. Some of the companies help you to manage your debt without taking any other loan and therefore charge a minimal service charge. Some companies are really good while they help you to manage such debt but some of these are not legitimate and could cause you huge losses and make your situation worse.

You feel great relief with a credit debt consolidation loan and bring back your financial life.

If you are a credit card user, you might have many credit card debts for which credit card debt consolidation is the most promising answer. Credit card consolidation helps you to lower down your high t credit card debt interest rates. The main reasons for credit card consolidation are as follows:

1. You get a high interest rated credit card converted into low interest rate consolidation.

2. You can go for this option, if you have many credit cards and ends up with high annual fees.

3. You are unable to make monthly payments on your credit card debts and steadily ruining your credit.

Visit our website credit-card-debt-consolidation-guide.info