Stop creditor and collection agency abuse

As far as the rights regarding collection agencies are concerned there are a number of rules and regulations which the creditor has to follow. The FDCPA law protects the human rights against creditor's harassments. They are not allowed to make calls at any part of the day or night, use abusive language, call family or friends for recovery, infact they can only contact their attorney if they have one! The creditor should send everything in writing like the amount of money they owe; the name of the creditor to whom they owe the money; and what action to be taken if they believe they does not owe that money. If a bill collector violates the FDCPA law the debtor can file a complaint with the Federal Trade commission (FTC).

If the creditors still go on calling, a written complaint can be lodged with the Better Business Bureau or the Federal Trade Commission, but FDCPA only applies to the collection agencies who work for the company and not the original creditor. If the bill collector violates the FDCPA, the conversation can be taped and a written complaint can be lodged in writing with the Federal Trade Commission, and next complaint is to be lodged with the State Consumer Protection Agency.

Some collection companies employ illegal way of collection, like the use of misleading statements, just like any other high pressure salesman. They try to somehow make the customers pay up there and by asking for a "telecheck" so that they can electronically deduct the amount from their bank.

There can be moments where a debtor is not able to make the payment; the consequences would be nothing more other than demanding payment by calling them and sending those threatening letters. If they refuse, the collector can't do much else short of suing them once the collector (or creditor) does sue and gets a judgment, they can be followed by aggressive collection action: like garnishing of the net wages, seizing the bank accounts or refinancing your property. Some collection agencies will also agree for a debt settlement with a much lower amount than the original one.

It is difficult for the collection agency to build up a good case in court if they decide to sue. There is a method of furnishing the investigation information that has been sent by the collection agencies to report on the credit report. This can be taken away easily by using the method of debt validation, requesting for an investigation from the debtor's side. The debtor should be feeling better and safe once the debt goes to the hands of the collection agency as the FDCPA laws will start saving his rights then!

A customer can send a cease and desist letter to the creditor stating the dispute on the validity of the debt. The customer can go ahead and ask for sufficient support on the assertions of the debt, the original copies of the application of the account, and any suitable supporting bills associated with the account, etc.The customer can ask the creditor to cease all communication with him regarding the debt and also notify the creditor not to furnish any inaccurate information, as according to the FDCPA law it is illegal and unlawful.

There are 5 ways to deal with collections on the credit report which can be listed below:

• Pay for delete
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• Settle the debt
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• Debt Validation
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• 623 Disputes
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• Dispute with credit bureaus

Under the FDCPA law the debtor can ask for the certified copy of the debt, if he feels that there is a dispute. Debt verification is an important part of FDPCA.Above mentioned is some important ways by which creditor and collection agency abuse can be stopped.