Debt collectors are agencies or firms which specialize in recovering debts owed by businesses or individuals. They do function as agents for various creditors who will in turn pay them for their services in the recovery of debts.
In most cases, debt collectors do charge a specified fee for their services and in some cases this fee maybe a percentage of the total amount owed. Such debt collection agencies abound in various locations and even online. They may be in form of first party agencies which are usually the subsidiaries of big companies to whom the debt is owed. They can as well operate as third party agencies which are simply separate companies that can be contracted to collect debts for a specified amount of payment Debt Recovery Singapore.
Oftentimes, debt collectors can be very disturbing especially in the way they make incessant calls. If you’re involved in a debt and your creditor hires a debt collection agency to recover the debt, you can always handle the situation if you know the right steps to take. You need to engage a proactive management strategy to be able to deal with any debt collection agency which comes your way.
If for instance you actually owe a debt, you don’t need to be avoiding the debt collector whenever he shows up. You need to pick his calls and answer whatever questions he may ask. You may be charged and sent to court if you dodge the debt collector. Hence, you need to face him headlong. All you need is to be careful in the way you respond to questions. Don’t reveal much about your finances since the collector can use that against you.
While you interact with the debt collector, you need to record your conversations with them each time. You can always use such records as proofs against the collector if the situation gets awry in future.
The next step you need to take is to verify the actual debt in question. You can send a written request to the debt collector asking the agency to furnish you with the proof of the debt they claim you owe. Once you have validated the debt in writing, you have to ask the debt collector agency for some time to enable you clear off the debts. You have to be very bold and specific in asking this. You have to request for a reasonable period of time that can suit you.
In most cases, debt collectors do offer debtors enough time to clear off the debts. You simply have to discipline yourself and make personal budgets based on the income you earn every month in order clear off the debts. You have to make sure you pay off the debt on the date you agree with the collector. If for any reason you fail to meet up, make sure you pay in some part of the money you owe. You may be given another chance to still clear it off through proper negotiation.
You’re experiencing problems managing your debt load and one or more creditors has given your debt over to a collection agency.
The term debt collector often strikes fear in the mind of the consumer and we often have visions of a thug showing up at our door with a baseball bat to collect the debt or imagine someone contacting our employer and everyone else we know, to run us down and exert pressure on us to pay.
What can we do? What are our rights? Or, better yet, what can the collector do or not do?
This is such an important issue and if you’re one of the unlucky ones in this situation, it can poison your life. When you’re in that kind of a situation, it usually feels as if you’re all alone and it just seems that there’s nowhere to turn for help. On top of that, some of the debt collectors out there use all sorts of tactics to try and intimidate the consumer and, quite frankly, often do things outside what’s permitted by the law, relying on the fact that consumers don’t know their rights.
There can be a tendency to simply ignore it and hope that it goes away or, to hide from it altogether, but that’s definitely the worst thing to do. Check out the facts, find out where you stand, and what are your rights. You just may be surprised.
So, Let’s take a quick look at some of the main questions people ask when they’re confronted with this:
1. Are debt collectors subject to any rules? Absolutely! Most jurisdictions/countries have laws that spell out what debt collectors can and can’t do. In the US, that law is called the “Fair Debt Collection Practices Act” (FDCPA for short) and it’s enforced by the FTC. Some states also have laws, the provisions of which can vary from those of the FDCPA. What follows are comments based on the FDCPA. You should check locally to see if there is a specific law in your jurisdiction.
2. Who’s covered? The FCCPA covers anyone that regularly collects debts owed to others, including collection agencies, lawyers who regularly collect debts and companies that buy debts and then try to collect them on their own behalf. One of the key phrases here is “owed to others”. Your bank, for example is not covered by this act (they’re usually covered by a multitude of other laws, though) but, a collection agency acting on behalf of your bank would be.
3. What Debts are covered by the Law? The FDCPA covers personal debt, good examples being credit card debt, car loans or mortgages. The act does not cover business debt.
4. Can the debt collector contact me any time of the day? Unless you give the collector a green light to do so, they cannot contact you at inconvenient times. What’s “inconvenient” is subject to interpretation, but it is generally taken to mean before 8:00 am or after 9:00pm.
5. What about contacting me at work? A collector cannot contact you at work if you advise him/her that you’re not allowed to receive calls there.
6. Can the collector speak to someone else about my debt? A collector can contact your spouse or anyone representing you in this case. A collector may not arbitrarily contact other people, except to obtain your address, phone number or where you work Debt Collection Services Singapore.
7. What if I don’t, or think that I don’t, owe the money? A debt collector must stop contacting you if you advise the collector that you don’t owe any or all of the money, except, to send you proof validating the debt. Once the collector has provided that proof he can then resume contacting you, unless you again dispute that claim.
8. Can a collector seize my bank account or wages? A collector can only do that if it has taken court action against you, has won and, obtained judgment. Whatever you do, don’t ignore any notices of legal action being taken. Act so as to be sure to protect your rights.
9. What are collectors prohibited from doing? In general terms, collectors are prohibited from: