When stuck in debt crisis, many consumers find themselves in a very stressful situation.
Dealing with creditors can be very difficult. Some creditors and debt collectors sometimes commit undue practices in collecting debts from consumers.
Despite the Federal Law against unfair debt collection practices, there are still creditors or debt collectors that ignore the law. Why? Because consumers don’t take action against them. Some consumers are not even aware of their rights and have no idea how to protect themselves.
Persistent calls, rudeness, the use of profane language, calling names, and violent threats – these are just some of the usual complaints from borrowers. Some consumers even resort to bankruptcy just to escape creditor harassment.
But filing for bankruptcy is not always the best solution to debt problem.
Other options may still be available without resorting to bankruptcy. Bear in mind that a record of bankruptcy will stay on your credit report for up to seven years. Such a negative record can affect your future plans. Furthermore, with the amendment of the bankruptcy law, the process of filing for bankruptcy has become more complicated.
If you’re suffering from creditor harassment, you can stop your creditors from treating you abusively.
The Fair Debt Collection Practices Act clearly forbids creditors and debt collectors from treating debtors inappropriately.
For instance, creditors should not contact you during inconvenient hours. Creditors can only call between 8 AM to 9 pm. They cannot call you earlier than 8 am or later than 9 pm unless you gave your consent.
The use of foul languages, name calling or threats is definitely not allowed. You should not put up with this kind of behavior from any creditor or debt collector no matter how much you owe them.
Also, creditors are not allowed to disclose the details of your debts to other people, even with your friends or relatives. They must not call you in your workplace especially if your employer does not permit so.
These are just some examples of the unfair practices included in the FDCPA.
A complete list of the debt collection rules can be found at the Federal Trade Commission’s website at http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm.
If your creditor or debt collector has committed any one of these unfair practices, you can send them a “cease and desist” note reminding them about your consumer rights. Instead of thinking about bankruptcy right away, it is also advisable to get in touch with a trusted credit counseling agency to help you deal with your debt problem.
