Collections Resource

Enough Is Enough: It’s Time To Stop The Stress

Living with the burden of debt on your shoulders is no easy burden to bear. From the constant harassment by debt collectors to the continuous stream of emails, letters, and texts to your family and your job, the experience can be stressful and frustrating, to say the least. Many collectors take liberties to violate your rights and harass you with lies and false accusations to add to the negative experience.
Thankfully, there’s a way out. Our firm has several programs and resources designed to help you pay off your debts, negotiate debt settlements, and even take the fight back to the debt collectors. Enough is enough! If you’re ready to stand up to your debt collector and finally stop the harassment, there are programs to help.

Debt Settlement Program

One of the most popular options that clients choose is the debt settlement program. Credit agents will work with you to contact your creditors and debt collectors and negotiate a settlement. While a settlement can have a slightly derogatory effect on your credit, it’s far better than having a default loan status on your credit report. Additionally, you may end up paying a far lower settlement amount than the collection agency initially requested.

Take Legal Action Against A Debt Collector

If you have evidence that a debt collector is harassing you, threatening you, lying to you, or otherwise taking advantage of their position, then you may be able to sue them in small claims court! Not only can this help you get back at the collection agency, but it may also award you the funds you need to put towards your debt settlement.

Debt Collectors Lie: Dealing With Empty Threats

If you’ve been at the wrong of a debt collector’s calls, then you know just how bad it can get. While many debt collectors are cordial, polite, and professional, there are just as many debt collectors who take it upon themselves to raise their voice, take accusatory tones, and even lie to you or threaten you and your family.

Can Collection Agencies Get Me Arrested?

One of the most prevalent lies propagated by some collection agencies is that they can have you arrested for not paying your debts. While it certainly sounds scary, it’s a complete, unadulterated lie (and one that you can sue them for). Debt collectors cannot initiate an arrest or even ask a local police department to arrest you.

The only exception to this rule is if you ignore an order to go to civil claims court related to your debt. In some states, this is viewed as “contempt of court” and can result in an arrest warrant being issued for you. You should always respond if your presence is required in court.

Debt In America

According to the most recent report by the Consumer Finance Protection Bureau, debt collection is an industry that’s worth nearly $13 billion in the United States and employs over 140,000 people (most of whom are debt collectors).

Around 25% of all U.S. residents have at least one account that has gone into collections. It could be an old credit card debt, a default auto loan, or failure to keep up with student loan payments (which is very common).

The number of complaints that the Consumer Finance Protection Bureau (CFPB) has received from consumers over the past few years has been massive. In fact, there’s a 40% increase in complaints from consumers who claim that the “debt” isn’t even their’s. That means there’s a lot of unethical debt collection going on.

How Does Debt Collection Work?

Suppose you fail to make payments on an active loan account for a long enough period of time. In that case, the creditor will usually close your account and send your past-due balance to their in-house collection agency or pay a third-party debt collection agency to harass you for the money. As long as the creditor has not gone bankrupt, the collection agency can continue to contact you until a settlement is reached or the debt is paid in full.

What Are Fair Debt Collection Practices?

It is not illegal for a creditor to collect a debt or sell your debt to a third-party debt collection agency. However, debt collectors are bound by law to uphold fair debt collection practices as outlined by the Fair Debt Collection Practices Act (FDCP) by the Federal Trade Commission.