Debt compliance
essentially refers to the practices that are used by the collection
agencies to make people do good on their debts. Surveys reveal that
the total US consumer debt stands at an approximate amount of 2.4
trillion dollars. When we break it up, then it comes down to an
approximate amount of 8000 dollars on a per head basis. If you’re
amongst those who’re going in for debt settlement, then it doesn’t
come as a surprise given such high debt figures. It’s advisable
that you gather enough information on debt compliance to arm yourself
with enough preparation and know what the creditors can do.
Don’t
be under the impression that debt compliance needs to be only in the
domain of private business. Governments, individuals, as well as the
non-profit organizations, all have the scope of employing debt
compliance practices. Basically debt compliance starts off with an
in-house collection agency. This agency starts giving you calls and
sends out letters. Your debt might then be sold off to another third
party collection agency too. Now, this agency may or may not use
aggressive tactics. Irrespective of the fact who owns your debt,
always remember that there are still certain legal limits that are
imposed on a debt collector regarding what he can do enforce
compliance.
It’s
extremely important that you be aware of the protections provided to
you by the federal laws as far as unethical debt practices are
concerned. According to the Fair Debt Collection Practices Act, a
debt collector can contact a third party only once and that too for
finding out your contact information only. Moreover, a collection
agency needs to provide you with a proper debt validation notice.
Check whether this particular notice includes details of what you owe
and how should you go about disputing it within the 5 days of the
collection agency having contacted you. The law prohibits practices
of harassment, unfair means and false statements.
Now,
if you fail to comply with your outstanding debts through debt
settlement or consolidation, then you obviously hurt your credit
score considerably. Moreover, this actually follows you for the next
7 years. Don’t forget the fact that there are chances of having a
judgment levied against you in civil court as well.
Pay
your bills on time and debt compliance would’ve automatically been
dealt with. If you make timely bill payments, then you can avoid the
collection agencies altogether. Once that is done, try talking it out
with your creditors to arrive at a mutually beneficial payment plan.
You can also consult an attorney if you feel that you’ve been the
victim of unfair or illegal practices. As for bankruptcy, then it’s
best to treat it as an extreme and last option.
Now that you know
what’re the basic nuances involved with debt compliance, it’s
best that you go for debt settlement or consolidation and take care
of your debts in the first place. If you still have outstanding debt,
then don’t hesitate to exercise your legal rights if required.
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