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, 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.
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.
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, 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.
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.
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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