Nobody chooses to fall behind in their debt repayments, but there are situations, such as the loss of a job, that may force you not to be able to pay your debts. In such an eventuality, the best course of action is to inform your creditor and see if you can work out some ways of remitting payments. An option that may be available for you, apart from Texas debt collection, is modification of the loan terms.
There are times when a creditor may refinance or even modify your debts. This culminates into reducing the interest rate or extending the repayment period, the purpose of which is to give you chance to improve in your payment. It is the creditor that suffers if they bring in a debt collection company. This is because the collector charge exorbitant fees which may make the debt recovery seem like a joke.
But they will be forced into this kind of action should it become apparent to them that you are not going to make your payments within a reasonable time. The creditor thus sells it to a collector, but it has to be less than its face value. The collector then sets out to collect the amount owed from you.
But even in the event of that eventuality, you need to know that there are laws that aim to protect you from unscrupulous collectors. For example, in Texas, activities of collectors are governed by the Texas Debt Collection Act. Through this law, collectors are not allowed to use fraudulent and abusive tactics in collecting the amount owed. Also, if a creditor is found collecting more money than was in the agreement, the person is breaking the law.
But you need to know that your debts may be increased to cater for service fee, attorney fees, collection, investigation or other fees. But if there is an item in file of collector that you are disputing, the law requires that you give your collectors a written notice. You should them send this written notice by a certified mail. When sending any correspondence to your collector, it is advisable to keep every copy. The collector has a period of 30 days in which to determine whether your dispute holds any water.
In a case where the error is found to be true, it has to be corrected and everyone who has report with that error be notified. Where a collector does not respond to the written notice for 30 days, this change must then be corrected whether it is a fact or fiction. Later on, when the collector checks and finds out that there was no error after all, the collection will be resumed normally.
Under the same legislation, you are protected from harassment and fraud. You have a right to sue any collector who uses profane language, threats (verbal or otherwise), and arrest intimidation against you. A collector that falsely accuses you of fraud also contravenes this Act.
There are collectors who may threaten to repossess your home. However, as long as your residence is declared as a home, it cannot be taken away from you for the purposes of settling an amount due except where the money you borrowed was used to buy the house. Also, if the money was meant for home improvement, to pay certain taxes or home equity loans. Any person that violates Texas Debt Collection Act will face the full rigors of the law.
There are times when a creditor may refinance or even modify your debts. This culminates into reducing the interest rate or extending the repayment period, the purpose of which is to give you chance to improve in your payment. It is the creditor that suffers if they bring in a debt collection company. This is because the collector charge exorbitant fees which may make the debt recovery seem like a joke.
But they will be forced into this kind of action should it become apparent to them that you are not going to make your payments within a reasonable time. The creditor thus sells it to a collector, but it has to be less than its face value. The collector then sets out to collect the amount owed from you.
But even in the event of that eventuality, you need to know that there are laws that aim to protect you from unscrupulous collectors. For example, in Texas, activities of collectors are governed by the Texas Debt Collection Act. Through this law, collectors are not allowed to use fraudulent and abusive tactics in collecting the amount owed. Also, if a creditor is found collecting more money than was in the agreement, the person is breaking the law.
But you need to know that your debts may be increased to cater for service fee, attorney fees, collection, investigation or other fees. But if there is an item in file of collector that you are disputing, the law requires that you give your collectors a written notice. You should them send this written notice by a certified mail. When sending any correspondence to your collector, it is advisable to keep every copy. The collector has a period of 30 days in which to determine whether your dispute holds any water.
In a case where the error is found to be true, it has to be corrected and everyone who has report with that error be notified. Where a collector does not respond to the written notice for 30 days, this change must then be corrected whether it is a fact or fiction. Later on, when the collector checks and finds out that there was no error after all, the collection will be resumed normally.
Under the same legislation, you are protected from harassment and fraud. You have a right to sue any collector who uses profane language, threats (verbal or otherwise), and arrest intimidation against you. A collector that falsely accuses you of fraud also contravenes this Act.
There are collectors who may threaten to repossess your home. However, as long as your residence is declared as a home, it cannot be taken away from you for the purposes of settling an amount due except where the money you borrowed was used to buy the house. Also, if the money was meant for home improvement, to pay certain taxes or home equity loans. Any person that violates Texas Debt Collection Act will face the full rigors of the law.
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