People do not just fail to pay their debts by choice. It can happen to you especially if you lose your job and therefore have no means of paying the loan. But sitting there is not going to help you. You need to start acting quickly. The first thing you ought to do is to talk to your creditor and see if they can modify your loan. This is much better than letting them use the option of Texas Debt Collection firms.
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.
Be that as it may, there are laws that still provide protection to you against these collectors. In Texas for instance, Texas Debt Collection Act regulates the activities of collectors. This law proscribes collectors from using abusive and fraudulent tactics. A creditor who collects more than the amount that was originally agreed upon is breaking the law.
However, there are things that may force your debt to increase. These are collection fees, attorney charges, and even investigation levies. It could be that you dispute a certain item in the file of a particular collector. If that is the case, the law requires you to give the collector a written notice that is then sent by a certified mail. A copy of any correspondence between you and the creditor should be kept. From the date of sending the notice, your creditor has 30 days to respond to it.
If your objection is to found to hold any water, then the creditor has to make a correction of it and inform anyone who has the report that contains the error. However, if 30 days elapse and the lender has not made any contact with you, he or she must make the changes you requested, and notify everyone in possession of a report with the error. Later on, if he determines that your objection was wrong after all, the collection will resume as normal.
This law also proscribes harassment and fraud. These are things like a collector using profane language, issuing arrest threats to you, or even applying violence. Also, if someone uses the phone to anonymously harass you, they are breaking the law. A collector who also falsely accuses you of fraud is erring on the side of the law.
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.
Be that as it may, there are laws that still provide protection to you against these collectors. In Texas for instance, Texas Debt Collection Act regulates the activities of collectors. This law proscribes collectors from using abusive and fraudulent tactics. A creditor who collects more than the amount that was originally agreed upon is breaking the law.
However, there are things that may force your debt to increase. These are collection fees, attorney charges, and even investigation levies. It could be that you dispute a certain item in the file of a particular collector. If that is the case, the law requires you to give the collector a written notice that is then sent by a certified mail. A copy of any correspondence between you and the creditor should be kept. From the date of sending the notice, your creditor has 30 days to respond to it.
If your objection is to found to hold any water, then the creditor has to make a correction of it and inform anyone who has the report that contains the error. However, if 30 days elapse and the lender has not made any contact with you, he or she must make the changes you requested, and notify everyone in possession of a report with the error. Later on, if he determines that your objection was wrong after all, the collection will resume as normal.
This law also proscribes harassment and fraud. These are things like a collector using profane language, issuing arrest threats to you, or even applying violence. Also, if someone uses the phone to anonymously harass you, they are breaking the law. A collector who also falsely accuses you of fraud is erring on the side of the law.
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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