Debt Collection, Methods & Practices
A Loan, in its various forms, has taken its place in the life of most of us. It is very difficult to find a person without any debt. Today every body wants a loan either for personal reasons, to construct a house, to buy a car or to proceed with their business. Whatever may be the reason, debts and debt collection have occupied an inseparable place in the life of practically everyone.
After the loan has been distributed by the bank or any financial institution, the regular collection of payment dues which includes the interest and principal, becomes essential.
To collect these payments regularly from the customer or the person who owes the debt, the companies appoint agents. These agents do their job of debt collection.
The methods followed by people for debt collection are: calling the debtor over phone, sending mails, sending notices to the party and so many other things. The cases of abuse to the common man by debt collectors from these debt collection agencies are increasing day by day. The law comes in to protect the common man from the harassment of these collection agencies. Though the amount you owe to the creditor cannot be wavered by the law, it protects your dignity as a human being. As a consumer you need to be aware of theses consumer protection laws and use them wisely when there is a need. The debt collector cannot disturb the debtor during odd hours of the day, unless he has got a prior permission from the debtor to do so. He cannot use abusive language which degrades the dignity of a person, in order to collect the debts. The debt collection cannot be done at the work place of the debtor before prior permission to collect his debt. The person who is a debt collector appointed by the creditor should give a schedule of outstanding payments and plans in writing, if the debtor wishes to have a written copy. The debtor should also have plans to pay his dues in time to avoid unnecessary interference to his privacy by the debt collection agencies. Sometimes it also happens that the debtor is being called to pay a debt which he actually believes that he doesn't owe the amount. Then he can explain the situation to the debt collector and it is the responsibility of the debt collector to investigate and cooperate to find the truth. If the debt collector is not responding and keeps on pestering you for the debt, which you actually do not owe, then you can file a lawsuit against the debt collector and seek legal guidance to overcome the issue. However the debt collector also has a right to sue you, if you do not actually make the payments due to the creditor and try escaping every time the debt collector is trying to contact you.
| 