Debt collectors can sometimes act like hound dogs sometimes; like they can literally be relentless in their attempt to try and force you to pay back the loan you took. Sometimes, they just go too far. And you will never find any shortage of people complaining of debt collectors knowing on their doors at odd hours or blowing up their phones for their loans to be repaid.
But many states have already put and enforced strict laws on debt collectors already regarding issues of abuse or harassments to the borrowers. Some states are even trying to enforce new rules to try and make some of these protections even stronger, which, in all fairness, is what everyone needs. This article will attempt to explain how this will happen.
1. Collectors have to get it right
Recent research by the CFPB found that in the past year alone, about 1 of every 3 contacted customers who were contacted by the creditors or credit collection agencies were asked to pay back the amount they borrowed. Only that the amount which was being requested from them was totally wrong. Often a time, you find that many debts are usually sold with inaccurate, incomplete, or inaccurate information about the borrower and even the borrowed amount. And here is where the problem begins.
A new law would require that all debt collectors scrub the data they have about their borrowers and the borrowed amount and ensure that they collect and store only the correct information and only contact their customers after they have acquired the correct information about them and the amount they owe.
2. Collectors can’t call and call and call
What is it with all the calling every two minutes? Like most sane people will get the message you are trying to communicate the first time you call. So why keep buzzing their phone calls? Luckily, the CFPB’s proposal will also prevent debt collectors from attempting to call their customers more than six times per week. At least, this will save people all the stresses which most debt collectors put people through.
The new limits should also allow the borrowers to stop their creditors from calling them on particular phone lines, while at work and even during certain hours.
3. Debts would now be easier to dispute
This new proposal will also require that debt collectors include more specific information in their agreement forms about the debts plus the initial notices that they send to their consumers. The good news about this proposal is that it will also put some power in the customer’s hands, especially when it comes to defending themselves against any harassments or scams from the debt collectors. This new proposal would also allow the borrowers to verbally question the validity of the debts at any time. The borrowers will also have rights to demand the collection agencies to re-check their files to ensure that they have accurate information.
4. Debt should be documented on demand
The debt collectors would also be required to provide a full debt report to the borrower if, in any case, there is any dispute arising about the debt. This will put the debt on pause as both parties attempt to come to agreements on the debt amount and any agreements and forms that may be leading to the dispute. In most cases, you find that innocent consumers end up being hounded by debt collectors over debts that they don’t owe or even know nothing about.
5. Disputes can’t be shipped away
In cases where a debt collector decides to transfer any debt without responding to any disputed on the debts, then the next collector has no rights, whatsoever, to collect the debt. Not until the dispute has been resolved by the previous debt collector.
These new proposals are meant to protect both the debt collectors and the customers. Consulting with Northcash about your privileges as a debtor will give you all the important information you need to know when getting credit.
And, in as much as debt collection plays a significant role in the economy, it can also end up exposing innocent consumers to unnecessary abuses.