Consumers who are late in payment may feel dreaded when they get a call from a number they don't recognize. It comes with that sick feeling in the pit of your stomach with a mixture of fear, shame, anxiety, and probably even a hefty dose of annoyance. As a result, most people like to avoid financial recovery services and collection agencies.
With around 70 million people with bills in collections, there's a need to partner with a professional financial debt recovery agency that follows guidelines set under the Fair Debt Collections Practices Act (FDCPA).
However, you must not fall prey to the schemes too. Financial recovery services have limited options when securing payment.
Are debt collectors legal?
Debt collectors are not the same as creditors. Moreover, creditors are usually hospitals, credit card companies, mortgage lenders, and others who sell the debt to a financial debt collection agency. Now, these agencies purchase debt on the dollar, turning a profit on the funds they can collect from you. Also, they have a legal right to do all of this.
Whether a six-figure medical bill or a car, a debt collector will hound you for payment. What isn't legal are some tactics some debt collectors still try to get away with, like harassment and threats.
Limitations of financial recovery services
When receiving a collection call at work can be exceptionally humiliating. It may feel like the line has been crossed. but, unfortunately, what they're doing is not illegal. However, there are rights here.
Debt collectors can’t just do whatever they want. But moreover, your hands aren't tied. So here's what you need to know when it comes to collection.
- Debt collectors cannot come to the place of work.
- The FDCPA prohibits debt collectors from publicizing the debts
- Collectors may call you at work but cannot identify themselves as a debt collector
- Consumers may ask collection firms to not call at work
Contacting the family
When it comes to the collection, financial recovery services can be exceptionally ruthless. While they can call family members to track down and attempt to embarrass, they may not reveal why they're calling. In general, debt collectors can only contact a family member once. In case the collection firm calls repeatedly, they're violating the law.
Debt collectors can contact a small group of people and legally discuss the debt:
- Spouse
- Parent
- Guardian
- Attorney
The most straightforward way to get a debt collector to stop calling is to clear the debt. However, in most cases, it won't be that simple.
Refusing payment plan
Financial recovery services may refuse a payment plan. Moreover, they are not required to negotiate with you. Collection agencies tend to gather as much amount as possible. But, many of these operations come from a place where something is better than nothing.
If the numbers are correct, the first job is to pay off as much debt as possible. If the debt is too large, it's time to negotiate a payment plan or to request the debt be settled.
Garnishing wages
Financial recovery services can't directly garnish the pay check. But they won't even have a problem suing you for what you owe. When the judge rules in their favor, the financial recovery services have the right to go after wages and assets.
Final Wrap
Getting into debt may not happen overnight. But when owing someone money, it's best to get payment cleared as quickly as possible. At Vital Solutions, we can help you with all your debt collection efforts. Get in touch with our experts for more details.
