When consumers fall under tough times, they become crippled with mounds of debt that has accumulated over the years.
Eventually, when that debt becomes burdensome, their monthly obligations to creditors quickly fall into a past-due status. Ironically speaking, most consumers want to be honest and be able to adequately pay their creditors. As we are all aware the debt collection arena plays a key part in the role of any country’s economy.
Lenders have the latitude of loaning money to consumers to be able to stay in business or pay off large sums of money to other organization so that they can continue to serve the public and or avoid bankruptcy.
The United States is full of debtors; almost everyone over the age of 18 has some kind of personal debt that they owe to financial institutions. If it’s not a mortgage or auto loan, it’s a student loan or some type of credit card. And when the unexpected hits and these obligations can no longer be paid, here comes the overwhelming flood of calls from collection agencies.
The number of people interacting with debt collectors in Spain has drastically increased. According to recent research, the number of people dealing with debt collectors has increased from 14% to 27% in the last five years.
With the harsh economic times, you are definitely struggling with bills you cannot pay and maybe the debt collectors are always on the other end of your phone demanding you to pay up. If you fail to pay as they request, the debt collectors will make it sound like lots of bad things will soon happen to you.
However, here are some of the things you need to know. The federal government by using the Fair Debt Collection Practises Act provides one with certain rights. In case the debt collection agency calling you goes against any of them, you can always report them to the Federal Trade Commission or the state attorney. Below are five important things any debt collector will never want you to know.