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Preventing Unfair Debt Collection Practices

Preventing Unfair Debt Collection Practices
"Every day, numerous consumers are harassed by debt collectors. They may intimidate the debtor and use dread to induce a sense of urgency. However, consumers have the right to protect themselves from unjust or abusive debt collection practices when dealing with creditors.

Off Limits

The mission of the Federal Trade Commission is to safeguard consumers and investigate complaints lodged against businesses that engage in abusive or intimidating consumer practices. The Unfair Debt Collection Practices Act prohibits creditors from engaging in a number of practices. Although many creditors continue to attempt to get away with certain actions, it is crucial that consumers understand which actions are prohibited and how to safeguard themselves.

When contacting consumers, creditors must abide by a set of regulations. They cannot call a consumer before 8:00 a.m. or after 9:00 p.m., nor can they text, email, or use social media as a means of communication. Additionally, debt collectors are prohibited from misrepresenting themselves as the creditor, an attorney, or any other entity that conceals their identity as a third party collector. When endeavoring to collect a debt, debt collectors are prohibited from using deceit, threats, or abusive language. If any of these actions are violated, consumers are exhorted to contact the FTC.

Guard Yourself

It is possible to prevent a creditor from establishing contact. Most consumers are unaware that they can simply negotiate with their lender to halt debt collection calls. Contacting the lender to set up a payment plan can immediately put an end to collection calls and attempts. A consumer is also entitled to a 30-day debt validation period, during which a third-party debt collector must provide written confirmation of the debt. However, this requires the consumer to submit a written request for debt verification to the debt collector. Once the verification has been requested, debt collectors are prohibited from contacting the debtor until 30 days have passed.

Filing for bankruptcy is another method to stop debt collectors from contacting you. Once a bankruptcy petition is approved, a stay order is automatically issued, preventing creditors from contacting the debtor. Any violation of this order could have severe repercussions for the creditor. Additionally, employing a bankruptcy attorney can protect the debtor from debt collectors. A bankruptcy attorney can even mediate on the debtor's behalf, sparing the debtor the time and trouble of dealing with creditors.

" - https://www.affordablecebu.com/

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"Preventing Unfair Debt Collection Practices" was written by Mary under the Finance / Wealth category. It has been read 61 times and generated 0 comments. The article was created on and updated on 01 June 2023.
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