If you are not able to payoff your huge amount of unpaid debt then your creditors will forward your accounts related information to these debt collection agencies whose work is to collect the unpaid debt from you by hook or crook . The collection agencies will make lot of strategies to collect debt from you and you will feel like hell in this condition . So the only way which can help you in this condition is “ debt collection laws “ if you will know about these laws , you can maintain the situation.
There are 5 important debt collection laws which are as follow :
1. Harassment : The collection agencies will harass you by calling you all the time and makes you feel like a guilty but you need to know that they are not allowed to do that according to the law. So if they will make some violence or use abuse language to you then you can take action against them according to the law.
2. Calling all the time : The collection are not authorize to call you all the time . If they call you before 8.00 a. or after 9.00 p.m then you can take legal action against them according to this law.
3. False claims : Debt collection agencies only want to collect money from you because they will get commission on the total amount of your debt so they can show you lot of false claims that you don't did. They will try to feel you that you have done a serious crime and if you will not pay the debt they can take any action against you but you no need to take any tension because if they say these false things to you , then you can take legal against them.
4. Divulge info : The debt collection agencies are not permitted to share your personal account related information to any outsider or to any third party except your guardian , spouse etc. and if they do so , you have all the rights to file case against them.
5. Debt validation letter : The debt collectors are bound to give you a validation letter of your debt after 5 days of initial communication with you in which the total amount of your debt and the name of your creditor will be mentioned.
So if you found the debt collectors violating these laws you can directly file case against them and if you win the case , the debt collection agency have to pay you the compensation against your damages . In some cases the judge may also charge a fixed amount of compensation to the debt collectors like $ 10,000.
That was some useful information on debt collection laws from my side. I will try my best to give you more recent information on debt , law and finance related matters. So you can follow my blog to make yourself updated to the finance world.