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 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.
However, the balance can be increased especially to cover legal, collection and investigation fees. If you dispute an item in the file of a collector, you have every right to raise an alarm. This is done by giving a written notice to the creditor. The written notice is sent by certified mail. Always make a point of keeping every copy of any correspondence between you and your creditor. Within 30 days after filing your compliant, the creditor must respond.
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 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.
However, the balance can be increased especially to cover legal, collection and investigation fees. If you dispute an item in the file of a collector, you have every right to raise an alarm. This is done by giving a written notice to the creditor. The written notice is sent by certified mail. Always make a point of keeping every copy of any correspondence between you and your creditor. Within 30 days after filing your compliant, the creditor must respond.
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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