Know That You Are Protected From Texas Debt Collection Companies By The Law
It is not by choice that people fail to meet their payment obligations. Actually, this can happen to anyone. It could be that you have suffered a financial problem, like losing your job. This then means that you are unable to meet your payments. Under such circumstances, it is very important to act quickly. First, you need to contact your creditor to find a way in which to continue servicing the debt before he calls in Texas debt collection firms.
Also known as debt consolidation, its main purpose is to make terms of payment friendlier to you. For instance, you could end up with longer repayment period, meaning you now have to make lower monthly repayments. Note that it is actually to the disadvantage of a creditor to walk the path of debt collection agencies. These collectors do charge quite a lot in fees, the reason creditors are reluctant to enlist their services.
But if a creditor notices that you may not complete you payment as agreed, then he turns your case to a collector. Actually, he or she now sells the debt to a collector, and it will be less than the face value of the total amount lent. The debtor will then try to recover this amount in full.
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.
Some will even threaten to repossess your home. But this is not true especially if your residence qualifies to be a homestead under Texas laws. The only time it could be repossessed is if the amount you was borrowed for the purpose of renovating the home or buying it. Anyone breaking Texas Debt Collection laws may be prosecuted and fined or incarcerated.
Also known as debt consolidation, its main purpose is to make terms of payment friendlier to you. For instance, you could end up with longer repayment period, meaning you now have to make lower monthly repayments. Note that it is actually to the disadvantage of a creditor to walk the path of debt collection agencies. These collectors do charge quite a lot in fees, the reason creditors are reluctant to enlist their services.
But if a creditor notices that you may not complete you payment as agreed, then he turns your case to a collector. Actually, he or she now sells the debt to a collector, and it will be less than the face value of the total amount lent. The debtor will then try to recover this amount in full.
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.
Some will even threaten to repossess your home. But this is not true especially if your residence qualifies to be a homestead under Texas laws. The only time it could be repossessed is if the amount you was borrowed for the purpose of renovating the home or buying it. Anyone breaking Texas Debt Collection laws may be prosecuted and fined or incarcerated.
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